Bank Of India overdraft loan

The Bank of India Insta Overdraft Facility is an attractive service for its account holders. Namely, it allows customers to withdraw funds from their bank account beyond the zero balance and up to the approved limit. This facility is especially useful for individuals facing uncertain cash flows, empowering them to manage their short-term financial requirements effectively. As it is categorised as a revolving credit facility, customers can withdraw and repay funds within the sanctioned limit as needed, making it a more borrower-friendly credit solution. Let’s scroll down to learn more. We present herein a detailed overview of the Bank of India overdraft loan.

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Written By
Utsah Sharma
Utsah Sharma
Utsah Sharma is a seasoned financial expert with a Master’s Degree in Commerce specialising in Financial Services, Investments, Loan Assessments, Mutual Funds, Banking & Loan products. Drawing on her experience, she has established herself as a trusted voice, providing invaluable insights and guidance to seasoned investors and beginners. She is committed to breaking down the complexities of everything finance.
Reviewed By
Piyush Bothra
Piyush Bothra
Chief Financial Officer, Square Yards
Piyush Bothra is the Chief Financial Officer at Square Yards, bringing over two decades of rich experience in finance and leadership. He is an MBA graduate from the prestigious IIM Lucknow and holds a BE in Information Technology from Sardar Vallabhbhai Patel Institute of Technology. He has played pivotal roles in scaling businesses and driving financial strategies. At Square Yards since 2015, Piyush is known for his strategic vision, strong financial knowledge, and valuable financial insights, significantly contributing to the company's growth and success.

Features of Personal Loan Overdraft Facility

Following are the applicable features of Bank of India bank Insta OD (Overdraft Facility):

  • Purpose: It aims to provide hassle-free credit for low-income groups and underprivileged customers without security or collateral. 
  • Nature of Credit: It’s a revolving credit facility linked with the bank savings account, allowing customers to withdraw and repay funds up to a certain limit repeatedly.
  • Loan Amount: The overdraft facility from the Bank of India ranges from Rs. 2,000 to Rs. 10,000, varying based on the customer’s financial profile. 
  • Period of Sanction: The sanction period is 36 months, subject to review of the account after that.
  • Interest Rate: The interest is charged only on the amount withdrawn, not the entire overdraft limit.
  • Repayment Flexibility: Borrowers can repay their loans as per their cash flows and are not subjected to EMI. 
  • Prepayment Charges: Unlike term personal loans, there are no repayment charges in the personal loan overdraft facility.

Bank of India Fees & Charges Overdraft Loan

Below are the applicable fees and charges of Bank of India overdraft facility:

Parameter  Fees & Charges
Interest Rate 11.2% p.a *
Late Payment Fees Applicable
Prepayment Fees Nil

Who Is Eligible for an Overdraft in the Bank of India?

Bank of India overdraft loan eligibility is as follows: 

  • Account Type: The overdraft facility is available to customers with savings or current accounts with the Bank Of India.
  • Income Group: It’s primarily designed to credit low-income groups and underprivileged customers.
  • Account Balance: The overdraft limit is determined based on the account balance and translation history. 
  • Credit Score: The customer’s credit score and repayment history may also be considered; typically, a CIBIL Score of 700 or higher is considered ideal. 

Bank of India Documents Required for Loan Application

Bank of India overdraft loan documents are as follows: 

  • Identity Proof: Passport, Voter ID card, Driving License, PAN card, or Aadhar card.
  • Address Proof: Utility Bills (Water/Electricity Bills), Passport, Driving License, or Voter ID card.
  • Age Proof: Passport, Ration Card, or Class X certificate.
  • Income Proof: Last 12 months’ bank statement.
  • Additional Documents: Duly filled application form with 2 passport-sized photographs.

Process to Avail of Bank of India Overdraft Loan

You can start your overdraft loan application via Urban Money’s official website. Alternatively, you can contact our loan specialist by calling 1800 208 3344. They will gladly assist you through the application process until you obtain loan approval.

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Frequently Asked Question (FAQs)

What is a Bank of India overdraft personal loan?

The Bank of India overdraft personal loan allows you to withdraw cash from your bank account, even though your account balance is zero, up to the bank’s approved limit.

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

No, you cannot convert your Bank of India personal loan to an overdraft, as no option is available.

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

It is good to take advantage of the Bank of India’s overdraft loan as it helps you meet your urgent financial needs. However, before finalising any decision, it is important to assess factors such as the applicable interest rates, terms, and repayment capabilities.

Is it better to take OD or a personal loan?

It largely depends on your financial requirements and situation. An overdraft is a credit facility that allows withdrawals up to a specified limit, even with a zero or negative balance. On the other hand, a personal loan is a fixed amount borrowed for a specific purpose and duration. Hence, choosing the better one depends on financial needs, eligibility, repayment capacity, interest rate, tenure, and availability.

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