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Pay Interest Only When You Use It
Get a credit line up to ₹10 Lakhs. Withdraw as per your need and pay interest only on the used amount. Repay and reuse the limit anytime.
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Rs.65k Cr+
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Loan Details
Overdraft Personal Loan Calculator
Calculate your EMI and total interest for an overdraft personal loan with flexible repayment options.
Instant Approval
No Hidden Charges
100% Digital Process
Representative Example:
Borrow ₹5,00,000 over 12 months at 9.99% APR. Total repayment: ₹5,27,467.42 with monthly EMIs of ₹43,955.62.
EMI Calculator
Select Your Bank
Enter Loan Amount
₹5,00,000
50K50L
9.99
8%30%
1
1Y10Y
Monthly EMI
₹43,955.62
Total Interest
₹27,467.42
What is a Personal Loan Overdraft?
A Personal Loan Overdraft (or Credit Line) is a facility where a credit limit is assigned to your account. You can withdraw funds as needed and pay interest only on the amount utilized, not the total limit sanctioned.
Unlike standard loans with fixed EMIs, here you can choose to pay only the interest component monthly. The principal can be repaid at your convenience or at the end of the tenure.
Key eligibility factors:
- Higher Credit Score (750+ is standard)
- Stable Salaried/Self-employed profile
- Existing relationship with bank helps
- Minimum monthly salary of ₹25,000+
This product is ideal for managing short-term cash flow mismatches or unforeseen expenses.
Financial Guide
Overdraft Interest Rates
Overdraft interest rates are typically 1-2% higher than standard term loans, starting around 12-14% p.a. However, the effective cost is often lower because interest is calculated on a daily reducing balance.
Mastering the Credit Line
An overdraft facility offers immense flexibility but requires financial discipline. Here is how to use it effectively:
1
Pay Principal When Possible
Don't just pay the interest every month. Whenever you have surplus cash (bonus, incentives), park it in the overdraft account to reduce the outstanding principal and interest burden.
2
Emergency Buffer
Treat this facility as an emergency fund. Keep the limit sanctioned but unutilized; you won't pay a penny in interest until you actually withdraw the money.
3
Watch the Annual Fees
Unlike term loans, overdraft accounts often have an annual renewal fee. Ensure the utility of the flexibility justifies this recurring cost.
4
Avoid Maxing Out
Regularly utilizing 100% of your overdraft limit indicates credit hunger to bureaus and can negatively impact your credit score over time.
5
Daily Interest Calculation
Interest is calculated daily. If you borrow ₹1 Lakh for just 5 days and repay it, you only pay interest for those 5 days. It's perfect for very short-term needs.
Overdraft Facility Eligibility
Check eligibility Banks are stricter with overdraft approvals compared to term loans because of the repayment flexibility offered.
Credit Score: Strict requirement of 750+ CIBIL score.
Employment: Salaried (Min 2 years exp) or Self-Employed (Min 3 years vintage).
Income Criteria: Minimum net salary of ₹30,000 (often higher than term loans).
Banking History: Clean banking track record with no cheque bounces in the last 6 months.
Age Limit: 21 to 60 years (limit usually expires at retirement age).
KYC: Standard KYC + Income proof (Bank statements are crucial).
Overdraft Fees and Charges
Overdraft facilities have a slightly different fee structure compared to standard loans:
| Particulars | Charges |
|---|---|
| Processing Fees | 1.5% to 3% of the sanctioned limit |
| Annual Renewal Fee | ₹ 1,000 - ₹ 5,000 (Charged yearly to keep the line active) |
| Foreclosure Charges | Usually Nil (You can clear the balance anytime) |
| Part-Payment Charges | Nil (This is the core feature of the product) |
| Penal Interest | 2% per month on over-limit usage |
Other fees and charges levied by the lenders include documentation charges, verification charges, duplicate statement charges and NOC certificate charges.
Why Choose a Personal Overdraft?
Experience the ultimate financial freedom. Withdraw what you need, when you need it, and pay interest only on what you use.
Key Advantages
- Pay Interest Only on Utilized Amount
- Prepay & Re-borrow anytime (Revolving Credit)
- No Part-payment or Foreclosure charges
- 24x7 Access to funds via Net Banking/ATM
- Ideal for fluctuating cash flow needs
- Interest calculated on daily basis
Overdraft vs Term Personal Loan
Is flexibility worth the extra cost? See how the two products compare.
| Overdraft (Credit Line) | Term Personal Loan |
|---|---|
| Interest on Utilized Amount only | Interest on entire Sanctioned Amount |
| Repayment: Interest-only monthly | Repayment: Fixed EMI (Principal + Interest) |
| Principal repayment is flexible | Principal repayment is fixed schedule |
| Interest Rate: Slightly Higher | Interest Rate: Comparatively Lower |
| Best for: Short-term/Uncertain needs | Best for: One-time large expense |
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