Hey pal,
Banks provide customers with an extension of credit when the account balance becomes zero. This extended credit that can be withdrawn by the account holder is known as an overdraft. Private and public banks in India provide this facility in exchange for a nominal fee. I will share with you which bank is best for overdraft.
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Overdraft availed is based on account balances, pre-sanctioned loan offer, bank’s discretion, and financial standing/ repayment ability of the account holder. Banks or lenders charge interest on the principal amount credited.
The answer to the best bank for overdraft might differ from one person to the next, you should know the pros and cons of an overdraft before deciding which financial institution is best suited for your needs.
Advantages |
Disadvantages |
Helps in managing business cash flow |
Higher interest rate |
Fulfils urgent cash crunch requirements |
Offered only to bank account holders |
Interest is paid only on the utilised amount |
The sanctioned limit depends upon the applicant’s financials |
Can be withdrawn at short notice |
Short-term borrowing – revises every year |
No collateral required by banks |
Not suitable for long-term finance |
To figure out the best bank account for overdraft, you will need to consider the following factors:
Interest rate
Charges for opening and closing an overdraft credit line.
Repayment options: Method and tenure
Terms and Conditions
Assets needed as collateral
The best bank for overdraft rates are given in the table below.
Bank Name |
Name of Overdraft Facility |
State Bank of India (SBI) |
SBI Maxgain Xpress Credit Personal Loan |
HDFC |
Smartdraft |
ICICI Bank |
ICICI Bank Home Overdraft Salary Overdraft |
This is all from my end on which bank is best for overdraft.
Read more: How to close overdraft account in SBI? How to withdraw money from SBI overdraft account? How To Repay Overdraft Against FD SBI? What is overdraft against FD?Shifting, House?
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Authors Of The Question
Which bank is best for overdraft?
Artha
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2 Year
2022-11-15T12:36:41+00:00 2022-11-15T12:36:43+00:00Comment
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