If a cash is required at the time of emergency, the bank has to apply for it, just as you do for another loan. Magal salary and current accounts are a little easier.
New Delhi: The overdraft facility of banks can be availed if the month end is running on the last day of the month and if money is suddenly needed. This is a facility offered by banks that people don’t know much about, even if they don’t know how to use it. We’re going to tell you about the Overdraft facility of banks that can meet the sudden money needs.
What is Overdraft feature
In fact, the overdraft facility is just like a short term loan. Through which the account holder can withdraw money from his account if he does not have money or has zero balance at all. Almost all government and private banks have overdraft facility. Most banks have this facility on current account, salary account or fixed deposit. Some banks also get overdrafts on things like shares, bonds, salary, insurance policies, homes, properties.
If a cash is required at the time of emergency, the bank has to apply for it, just as you do for another loan. Magal salary and current accounts are a little easier. Under the overdraft, you will get the money you need from the bank, since it is a loan that you will have to pay later and interest on it.
How much overdraft can you get
The amount of interest charged on the overdraft and the amount you will be paid depends on what you are keeping as collateral or mortgage. You have to pledge something before the bank for overdraft. such as fixed deposits, bonds or shares. Accordingly, the limit of the cache may be less. For example, if you have a FD of Rs 2 lakh in the bank, you can get an overdraft of up to Rs 1.50 lakh. In case of shares, bonds and debentures, these amounts may be more or less.