Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
An overdraft facility lets an account holder withdraw more than their account balance up to a pre-approved limit, paying interest only on the amount used.
A flexible credit line linked to your account — borrow as needed, pay interest only on what you use.
Common as an OD-linked home loan or against FD/salary; interest is charged daily on the utilised balance, unlike a term loan with a fixed EMI schedule.
A ₹2 lakh overdraft against an FD lets a borrower use ₹50,000 and pay interest only on that amount, not the full limit.
A flexible credit line linked to your account — borrow as needed, pay interest only on what you use.
Overdraft Facility helps you evaluate products, compare options, and make informed decisions aligned with goals, tax rules, and risk tolerance in the Indian financial system.