Need Extra Money? How Salary Overdraft Could Help You

HIGHLIGHTS

  1. Some banks offer facility of overdraft against salary accounts
  2. They charge one-time fee or processing charges for offering this facility
  3. Banks extend credit based on account holder’s take home salary

Do you need to break your bank fixed deposit when you need funds in an emergency or for the short term? For such situations, many banks offer an overdraft facility against assets like property, fixed deposits, mutual funds and insurance holdings.

Some banks even offer the facility of overdraft against salary accounts. This facility allows account holders to withdraw funds more than what is maintained in their accounts.

To have access to this facility, the account holders need to apply separately to the bank. Some banks charge a one-time fee or processing charges for offering this facility.
Under the salary overdraft facility, banks extend credit based on the take-home salary of the account holder. It is usually 2-3 times of the monthly salary.

HDFC Bank, for example, offers the freedom to customers use salary overdraft facility through cheques, ATM, online transfer, etc. Interest is charged on the amount utilised as overdraft. Banks have a minimum and maximum limit in case of an salary overdraft facility. For example, in case of HDFC Bank, the minimum and maximum limit is Rs 25,000 and Rs 1,00,000.

The repayment period varies depending on banks. In case of SBI, the overdraft is repayable in 6 months.

The maximum limit in case overdraft facility granted against different assets is much higher.

Axis Bank, for example, gives credit up to 85 per cent of the value of your fixed deposit with repayment period of up to the remaining tenure of the underlying fixed deposit.

Axis Bank charges interest rate of around 2 per cent higher than that of the fixed deposit rate.

Source:- Surajit Dasgupta

*******************************************************************************************

A Digital Portal is Born, Because We Learn  from You

Talent Hub- A talent recognition program on HimBuds. Platform to share your feelings, experiences, achievements etc. With each creation from HimBuds, we aim to share knowledge that is true, simple, and practical, and that has the ability to transform people’s lives.

We and our visitors always seek the flashes of Inspiration from your experiences. Stories about your personal experiences can awaken our awareness, stretch our hearts, and help us to heal. 

So what are you waiting for? Give words to your hidden talent and write your own roaring success story today itself !! We want you to share your magnificence with the world! Let the world know WHO YOU REALLY ARE? 

Please try to share every possible information including your photos which you want us to publish on the website. Each story you submit will be reviewed carefully and it may take several days to publish it. It is recommended that you re-read and double-check spellings prior to submitting.

You can also find interesting and helpful articles posted every day on our blog, or keep up-to-date with the latest news by following us on Facebook.
To find out more about our story, history, technology, and latest news visit himbuds.com 

Submit your story at:- virender@himbuds.com

*********************************************************************************************

 

Comments

comments



Virender Singh Rana blogs at HimBuds.com. B.Sc in Hotel Management and certified in Revenue Management from Cornell University (U.S.A).
His satisfaction lies in helping a needy and ultimately wishes to set up an NGO.


error: HimBuds content is copyright protected