Bank Of Baroda Overdraft Loan

Get in Touch for Personal Loan Expert Advice
Connect with our Personal Loan Advisor Now!
  • Personalized Personal Loan solutions
  • Expert guidance
  • Application assistance
  • Credit score discussion
  • Personal Loan Interest rate comparison
+91
Choose City

Written By
Thejus KS
Thejus KS
A mechanical engineer turned history buff with a sprinkle of financial brilliance. Thejus’s expertise comes with a unique blend of engineering precision, timelines, and the power of numerals. He knows that numbers are the pulse of our globe. Attention to detail and extensive research are the key elements of his writing.
Reviewed By
Amit Prakash Singh
Amit Prakash Singh
Co-Founder, Square Yards & Chief Business Officer, Urban Money
Amit Prakash Singh is the Chief Business Officer at Urban Money. With over nine years of experience at Square Capital, he has played a crucial role in establishing it as one of India's premier loan advisory services. Amit's deep financial insights and extensive knowledge have driven significant business growth and strategic advancements. He has successfully built and managed large sales teams, optimised costs, and created leaders within the industry. Amit's financial expertise and strategic vision are key to the ongoing success and expansion of Square Yards and Urban Money.

The Bank of Baroda overdraft loan provides account holders with a flexible financing option. It allows them to withdraw more money than is currently in their accounts up to a predetermined limit. This solution is designed to assist both individuals and businesses in effectively managing their cash flow. It ensures that they have funds readily available for unforeseen expenses or temporary financial requirements. The overdraft facility offers a safety net without burdening the borrower with excessive financial pressure. It also offers competitive interest rates and convenient repayment choices.

Features of Personal Loan Overdraft Loan

Features of Bank of Baroda’s instant overdraft facility offers us the following features:

  • Banks extend the option of overdraft facilities with a predetermined limit that varies for each borrower.
  • An overdraft limit account allows you to deposit or withdraw funds anytime if you stay within the set limit.
  • The bank charges interest on the borrowed amount that exceeds the limit at a fixed rate. Interest is calculated daily and added to your monthly bill. If you fail to pay the owed amount, the interest increases.
  • It is typical to pay prepayment charges for loans. However, banks do not impose any charges if you decide to pay off your overdraft limit ahead of schedule. You can gradually pay back the overdraft amount without facing any penalties for early repayment.
  • Repayment of the overdraft can be made at your convenience, in varying sums, as and when you have the funds available. Unlike most loans that follow the EMI system, overdraft limits operate differently.
  • Joint borrowers have the opportunity to access overdraft limits. Nevertheless, it is important to note that both applicants share equal responsibility for repaying the approved overdraft limit.

Bank of Baroda Fees & Charges Overdraft Loan

The Bank of Baroda has no fixed interest rate for the overdraft facility. Instead, the rate is determined based on the borrower’s previous record and other factors. Interest is only applied to the portion of the credit limit that has been used.

Usually, there is no processing fee for Bank of Baroda’s overdraft loan. However, these fees may change according to the bank’s terms and conditions.

Eligibility Criteria for an Overdraft Facility/ Loan in Bank of Baroda

The Bank of Baroda’s overdraft loan eligibility stands as follows:

  • Salaried/ Self-employed individuals with a BOB Savings/ Current account
  • Good Credit History
  • Income Stability
  • Indian Citizen

Documents Required for Bank of Baroda Overdraft Loan

Bank of Baroda overdraft loan documents required are as follows:

  • ID Proof (Aadhar Card/ Voter ID/ Drivers’ License/ PAN Card)
  • Address Proof
  • Proof of Income (Payslips/ Bank statements/ Employment letter)
  • Employment Proof  (Employee ID/ Registration of Business)
  • Other bank-specific documents

Process To Avail the Bank of Baroda Overdraft Loan

Urban Money is your one-stop solution for all your financial needs when applying for a Bank of Baroda Overdraft. Our team of professionals will assist you throughout the process, from filling out the application to submitting the necessary documents. For more information, visit our website at www.urbanmoney.com  or give us a call at 1800 208 3344.

Personal Loan By Banks

Frequently Asked Question (FAQs)

What is the Bank of Baroda's overdraft personal loan?

Bank of Baroda’s overdraft facility is a financial option that allows you to withdraw funds from your savings or current bank account, even if you have no remaining account balance.

Can I convert my Bank of Baroda personal loan to an overdraft?

No, you cannot. Bank of Baroda Personal loans are quite different from the Overdraft facility, as the overdraft loan requires a savings or current bank account in the Bank of Baroda. 

Is the Bank of Baroda's overdraft loan good or bad?

Before making any decisions, it is important to consider your financial needs and circumstances. This involves evaluating factors like interest rates, repayment terms, and your ability to repay. Taking these factors into account before reaching a final decision is wise.

Is it better to take OD or a personal loan?

A personal loan is ideal for meeting long-term financial needs with specific goals in mind. On the other hand, OD loans offer the flexibility of accessing funds for short-term needs.

Urban Money