SBI Overdraft Loan August 2026

  • Personal Loan By Profession
  • Personal Loan By Other
  • Personal Loan By Scheme
  • Personal Loan By Amount

An SBI overdraft loan is a revolving credit facility that allows eligible customers to borrow up to a pre-approved limit without taking out a regular personal loan. Unlike a standard loan where the entire amount is disbursed at once and repaid through fixed EMIs, an overdraft allows customers to withdraw funds as needed and repay them at their convenience within the approved limit. SBI offers overdraft facilities against eligible savings accounts, salary accounts, fixed deposits and other approved schemes. Interest is charged only on the amount actually used and for the period it remains outstanding, not on the entire sanctioned limit. The available credit limit, interest rate and eligibility conditions vary depending on the overdraft scheme, the customer’s profile and SBI’s applicable terms.

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

Terms and Conditions

CONSENT IN RELATION TO ACCESS TO CREDIT INFORMATION THROUGH Equifax

End-user (customer)hereby consents to Loantap financial technology being appointed as your authorized representative to receive your Credit Information from Equifax on an ongoing basis until the purpose of Credit Risk Assessment. is satisfied or the expiry of 6 months from the date the consent is collected; whichever is earlier.

This End User Agreement (the “Agreement” ) is made between you (the “User” or “You” ) and Urban Money Private Limited hereinafter referred to as “URBAN MONEY ”, a private limited company having its registered office at 1st Floor, Tower A, M3M Urbana Business Park, Sector 67, near M3M Urbana, Gurugram, Haryana 122001. (“Urban Money ”, “Us” or “We”, which term shall include its successors and permitted assigns). The User and URBAN MONEY shall be collectively referred to as the “Parties” and individually as a “Party”.

What is an SBI Personal Loan Overdraft (OD)?

An SBI personal loan overdraft operates as a revolving line of credit extended to retail banking customers. Unlike a traditional term loan where the entire sanctioned amount hits your account at once, this arrangement lets you withdraw small sums as needed. You pay interest only on the exact balance you use and for the specific number of days it remains outstanding. Having a reliable liquidity backup prevents bounced cheques and covers sudden emergencies.

Difference Between SBI Overdraft and Personal Loan

Understanding how your borrowing method changes your monthly repayment schedule is crucial before choosing a product. Use the Personal Loan EMI Calculator to visualise different structural scenarios for a traditional term loan before deciding.

Operational Parameters Traditional Term Loan Revolving Overdraft Limit
Disbursal Mechanism Lump-sum credit to savings account Activated limit on active account
Interest Computation Calculated on total principal amount Charged only on the net daily drawn amount
Repayment Method Equated Monthly Instalments (EMIs) Flexible cash deposits into the limit
Prepayment Fees Nil for specific floating packages Zero charges for adjusting limits

What is the Interest Rate on SBI OD Loan?

The SBI overdraft loan interest rate 2026 updates remain pinned to a specific margin above either the Repo Linked Lending Rate (RLLR) or the corresponding time deposit rate. For the full current rate details, refer to the SBI personal loan interest rate page.

  • Deposit Linked Lines: Fixed at 1.00% above the relative time deposit rate being paid on your pledged fixed asset.
  • Salary Account Linked Lines: Typically range from 11.00% to 14.00% per annum depending on your CIBIL rating.
  • Processing Fees: Often completely waived for digital deposit overdrafts or capped at basic administrative minimums for salaried employees.
  • Renewal Tariffs: A small annual maintenance fee of ₹250 plus applicable taxes applies to keep specific credit lines active.

A higher credit score helps you secure a lower SBI personal loan interest rate margin during your periodic credit reviews. Compare current rates across all lenders on the personal loan interest rate page.

What are the Eligibility Criteria for an SBI Overdraft Loan?

The bank implements distinct parameters to minimise default risks across different retail borrowing categories. Use the Personal Loan Eligibility Calculator to estimate your borrowing capacity before applying.

  • You must hold an active savings, current, or corporate salary account with the bank.
  • Salaried individuals must show at least six months of continuous employment with a recognised employer.
  • The minimum net monthly income threshold sits at ₹25,000 for standard corporate employees.
  • Pledged fixed deposits must be clear of any prior legal liens or minor ownership restrictions.

What are the Documents Required for an SBI OD Loan?

Paperwork requirements remain minimal for pre-approved customers who regularly use internet banking platforms. For non-pre-approved retail credit limits, the following documents are generally required:

  • Completed and signed application form with recent passport photographs.
  • PAN card copies alongside valid proof of identity like a passport or driving licence.
  • Address verification via recent utility statements or voter ID records.
  • Salary slips for the past three months, along with a detailed six-month bank account statement.

When Should You Choose OD Over a Personal Loan?

A credit line suits specific financial situations better than a rigid term loan. If your cash requirements are unpredictable or staggered over several months, an overdraft prevents you from paying interest on idle money. Business owners managing short-term cash crunches benefit from this setup. However, if you need a large sum for a one-time expense and require strict discipline to clear the debt, a standard term loan with fixed EMIs works better it prevents overspending your limit.

If you decide to repay your term loan early, use the Personal Loan Prepayment Calculator to estimate the interest savings before foreclosing. If switching to a lower-rate lender makes more sense, the Personal Loan Balance Transfer Calculator can help evaluate the savings.

How to Apply for an SBI Overdraft Loan with Urban Money?

You can apply for a personal loan through the Urban Money website:

  • Visit the official Urban Money website.
  • Select Personal Loan under the loan category.
  • Browse and compare different loan options along with an SBI overdraft loan.
  • Click Enquire Now against the preferred option.
  • Enter basic details such as name, city, and mobile number.
  • Verify identity using the OTP sent to the registered number.

An Urban Money loan specialist will shortly contact you to guide the process until disbursal.

Written By
Abigail Simmons
Abigail Simmons
Content Writer
Driven by a curiosity for how everyday decisions shape our financial journeys, Abigail turns complex money matters into clear, engaging stories. She helps readers understand financial trends, whether it’s credit, loans, or smart money habits. When she is not decoding RBI updates or tracking industry shifts, she’ll be comparing savings hacks or just taking a long walk.
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.

Last Updated: 29th July 2026

Frequently Asked Question (FAQs)

What is an SBI overdraft personal loan?

The SBI overdraft personal loan allows you to withdraw funds over the current savings in your SBI bank account. You can repay the borrowed amount later, along with applicable interest, at your convenience.

Can I convert my SBI personal loan to an overdraft?

No, the bank does not currently offer any services for directly converting your SBI personal loan into an overdraft.

Is the SBI overdraft loan good or bad?

It primarily depends on your unique financial requirements and situations. Therefore, evaluating factors such as interest rates, terms, repayment capabilities, and other relevant aspects is prudent before making any decision.

Is it better to take OD or a personal loan?

There is no definite answer, as both options possess unique features and benefits. In essence, 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. Opting for the better option ultimately depends on factors such as financial needs, eligibility, repayment capacity, interest rate, tenure, and availability.

Do I need to pledge collateral for this overdraft?

It depends on the type of overdraft. An overdraft against a Fixed/Time Deposit requires a lien on that deposit as security. Salary-account-linked overdrafts may not require separate collateral but are typically assessed against your income and banking relationship instead.

What are the steps to apply?

Apply via Urban Money’s website, or call 1800 208 3344 to have a loan specialist assist you through the process. Alternatively, apply directly through SBI’s YONO app or Net Banking portal for instant processing if you’re linking the overdraft to an existing Fixed Deposit. Once approved, disbursal typically takes a day or two through Urban Money’s application route.

What is the interest rate on SBI overdraft personal loan?

For SBI’s overdraft against a Fixed Deposit, the interest rate is 1.00% above the rate applicable on the underlying Fixed Deposit. For salary-linked or other overdraft facilities, the applicable interest rate varies by scheme and borrower profile and is determined by SBI at the time of sanction.

What is the difference between an SBI personal loan and an overdraft?

A personal loan provides a lump-sum amount with fixed monthly EMIs. An overdraft provides an accessible credit limit, with interest accruing only on the amount you draw.

Can I get an SBI overdraft loan without a salary account?

Yes. You can obtain an overdraft line by pledging assets such as domestic fixed deposits or national savings certificates, even without holding a corporate salary account.

What is the maximum OD limit in SBI personal loan?

The maximum overdraft limit is Rs. 5 Lakhs for salary-linked accounts, while asset-backed lines can reach significantly higher amounts depending on the collateral value.

Is an SBI overdraft loan available for pensioners?

Yes. The bank offers a specialized pension loan product with overdraft options for retired individuals who receive their monthly pension directly through an SBI branch.

Quick Links

Loan Offers By State Bank Of India's

Personal Loan by Nationalized Bank

Personal Loan by Private Bank

Personal Loan by NBFC

Personal Loan Calculators

State Bank Of India Calculators

Bank wise Personal Loan Calculators

Bank Wise Personal Loan Interest Rate

Urban Money

Products & Offers

Loans

Tools & Calculators

Calculator

CIBIL Score

Credit Score

Credit Cards

Credit Cards
Become a Partner

Disclaimer:

The website may provide information about various loan products, insurance products, credit scores & links to other websites or resources over which urbanmoney.com does not have control as such information & links are received from the Banks, NBFCs, Insurance companies & credit rating agencies. Users of this website acknowledge that urbanmoney.com is providing these information & links only as a convenience, and further agree that urbanmoney.com is not responsible for the veracity of such information. Please note that users are advised to independently verify the information & do other requisite due diligence before making any decision and that urbanmoney.com nor its employees, partners, and associated staff are not accountable for any loss, harm, or damage due to usage of information from this website.  And further that user’s use of links to such external websites are subject to the terms of use and privacy policies located on those sites.

© 2026 www.urbanmoney.com. All rights reserved.