Overdraft Services

Flexible Short-Term Working Capital

Manage cash flow gaps and unexpected expenses with our overdraft facilities. Draw funds as needed and pay interest only on utilized amount.

Business cash flow management
Service Overview

Understanding Overdraft Facilities

An overdraft facility is a credit arrangement that allows you to withdraw more money than you have in your account, up to an approved limit. It's designed to meet short-term working capital needs and manage temporary cash flow shortages.

Unlike traditional loans, overdraft facilities offer exceptional flexibility - you can draw funds whenever needed and repay them at your convenience, as long as you stay within the sanctioned limit. Interest is charged only on the amount actually utilized and for the period it's used.

Capital Mine Solution helps businesses and individuals secure overdraft facilities from leading banks. We assess your requirements, help you choose between secured and unsecured options, and ensure you get favorable terms that match your cash flow patterns.

Financial planning meeting
Eligibility

Who Can Apply?

Overdraft facilities available to businesses and individuals

Business Entities

Companies, partnerships, and sole proprietorships with operational bank accounts and regular business transactions.

Salaried Individuals

Professionals with stable income and good credit history seeking personal overdraft facilities for emergencies.

Self-Employed

Professionals and consultants with irregular income patterns needing flexible access to working capital.

Requirements

Eligibility Criteria

For Businesses

  • Business vintage: 2+ years preferred
  • Stable business operations and cash flow
  • Minimum annual turnover: ₹20-30 lakhs
  • Good credit history and repayment track record
  • Adequate collateral for secured overdraft

For Individuals

  • Age: 21-60 years
  • Stable income source (employment or business)
  • Minimum income: ₹25,000 per month
  • Credit score: 700+ preferred
  • Existing relationship with bank beneficial
Documentation

Required Documents

Essential documents for overdraft facility processing

Document Category Specific Documents
KYC Documents Aadhaar Card, PAN Card, address proof
Income Proof Salary slips, IT returns, business financials
Bank Statements Last 6-12 months bank statements
Business Documents Registration, GST, financial statements (for businesses)
Collateral Documents Property documents, asset statements (for secured OD)
Photographs Passport-sized photographs
Advantages

Why Choose Our Overdraft Service?

Interest on Utilized Amount

Pay interest only on the amount you actually use, not on the total sanctioned limit, making it cost-effective.

Complete Flexibility

Draw and repay funds as per your convenience, with no fixed repayment schedule or EMI obligations.

Quick Access to Funds

Instant access to funds through your bank account, ATM, or online banking whenever you need them.

Renewable Facility

Overdraft limits are typically renewable annually, allowing you to maintain long-term access to working capital.

No Usage Restrictions

Use funds for any legitimate purpose - business expenses, personal needs, or emergency requirements.

Secured & Unsecured Options

Choose between secured overdraft against assets or unsecured facilities based on your eligibility and requirements.

FAQ

Common Questions About Overdraft

What is the difference between secured and unsecured overdraft?
Secured overdraft requires collateral like property, investments, or fixed deposits, offering higher limits and lower interest rates. Unsecured overdraft doesn't require collateral but has lower limits and higher rates. We help you choose based on your asset position and requirements.
How is interest calculated on overdraft?
Interest is calculated daily on the outstanding balance and charged monthly. You only pay interest on the amount you actually use and for the number of days you use it. This makes overdraft cost-effective for short-term needs compared to term loans.
Can I convert my overdraft to a term loan?
Yes, many lenders allow conversion of overdraft to term loan if you have a consistent outstanding balance. This can be beneficial if you want to fix your interest rate and have a structured repayment plan. We can help you evaluate if conversion makes financial sense.
What happens if I exceed my overdraft limit?
Exceeding your overdraft limit typically results in penalty charges and higher interest rates on the excess amount. It may also negatively impact your credit score. We recommend monitoring your balance closely and requesting limit enhancement if you regularly need more funds.
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Get Started

Ready to Secure Flexible Working Capital?

Our experts are ready to help you find the right overdraft facility. Contact us today.

Apply Now