HDFC Bank Overdraft Loan

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Kirti Bansal
Kirti Bansal
Kirti Bansal is an esteemed financial expert and accomplished writer, specializing in a range of financial topics, including Financial Services, Investments, Loan Assessments, Mutual Funds, and Banking. With a wealth of experience in the financial industry, she has earned a reputation as a trusted voice! Her expertise serves as a beacon for those navigating the intricacies of finance.
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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.

Let’s say you need a bit more money than is available in your bank account. You may not have enough time to go through the traditional loan application or don’t want to follow the EMI method as you intend to repay the funds soon enough. In such cases, an HDFC Insta Overdraft can be ideal for you. Whether it’s to cover utility bills, medical emergencies, credit card payments, or any other unexpected expenses, you can expect to withdraw money in a jiffy.

Namely, the HDFC overdraft loan is a formal arrangement with the bank that allows you to draw on funds over the amount in your bank account. You can repay the borrowed amount at your convenience, along with the applicable interest. However, there are certain limits in both the amount and time frame you can avail of, which may vary from person to person. Typically, this variation is based on factors such as your income, credit score, transaction history, etc. Continue scrolling down to learn more.

Features of Personal Loan Overdraft Facility

Let’s take a look at the following features you can expect from the HDFC Insta Overdraft facility:

  • Enjoy ultimate freedom in using the funds at your discretion.
  • Interest is only applied to the withdrawn amount, not the entire approved limit.
  • Enables you to make repayments at your convenience rather than adhering to fixed EMIs with a predetermined amount and interval.
  • Operates as a revolving credit line, allowing you to repay and reuse the funds as needed.
  • Acquire the necessary funds without plunging any of your assets as collateral or security. 
  • Quick and easy access to funds compared to other borrowing options.

HDFC Fees & Charges Overdraft Loan

Below are the fees and charges of the HDFC overdraft loan: 

Noun Processing Fee Interest Rate Renewal Fee
HDFC Overdraft Loan Up to Rs. 1,500 15% to 18% p.a. Rs. 250 + applicable taxes

Who Is Eligible for Overdraft in HDFC?

The eligibility criteria for overdraft in HDFC Bank may vary depending on the type of overdraft facility you want to avail. Here are some of the common guidelines for HDFC overdraft loan eligibility:

  • You must either be a current member of the bank or become a member by opening a bank account.
  • You must have a stable and regular source of income.
  • You must have a good credit score and repayment history.
  • You must be an Indian citizen.

HDFC Documents Required for Loan Application

Customers with pre-approved offers are not obligated to submit any documents. Other customers may be required to provide their bank statements for the assessment of banking transactions. Nonetheless, individuals without an HDFC bank account might need to provide the following documents:

  • Proof of Identity:  PAN Card (mandatory), Aadhaar Card, Driving licence, or Passport.  
  • Proof of Address: Utility Bills, Voter ID Card, or Ration Card.
  • Proof of Income: Bank statement, salary slip, income tax return, etc.
  • Proof of Business: Business vintage, GST registration, business profile, etc. (for self-employed customers)

Process to Avail HDFC Overdraft Loan

To initiate the application for an HDFC Insta Overdraft, you can visit the online platform of Urban Money. Alternatively, contact our loan specialist by dialling 1800 208 3344; they will gladly guide you until you secure the necessary funds. Applying through our official website ensures the fund is disbursed within a day or two.

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Frequently Asked Question (FAQs)

What is an HDFC overdraft personal loan?

The HDFC overdraft personal loan is a type of financing option that you can avail of via an HDFC bank account. Specifically, you can withdraw money beyond your current savings without needing to apply for a new loan and go through the approval process.

Can I convert my HDFC personal loan to an overdraft?

You cannot directly convert your HDFC personal loan into an overdraft; currently, no option is available.

Is the HDFC overdraft loan good or bad?

It majorly depends on your financial requirements and situation. Thus, assessing factors such as interest rates, terms, repayment capabilities, and other applicable factors is prudent before finalising any decision.

Is it better to take OD or a personal loan?

Both options offer unique features and benefits. Overdraft (OD) enables fund withdrawals up to a specified limit, even with a zero or negative balance. At the same time, a personal loan is a fixed amount borrowed for a specific purpose and duration. Therefore, choosing the better option depends on factors like financial needs, eligibility, repayment capacity, interest rate, tenure, and availability.

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