Overdraft: A temporary arrangement in the form of a permission granted to the customers to withdraw more than the amount standing to his/her credit.
Features of an Overdraft facility
- Approved credit limit. Each Overdraft has an approved credit limit, which varies based on your creditworthiness and the bank's policies.
- Interest rate.
- Nil prepayment charges.
- Repayment is not done through EMIs.
- Minimum monthly payment.
- Joint borrowers are allowed on Overdraft.
