An overdraft loan is the credit line given by a bank or other financial institute on your valuable assets. You can borrow a specific limit that you get from a bank on mortgaging your property. Depending on the value of your property, the bank will lend you an ‘X’ amount of money, which you need to return it to them in a stipulated time frame. For an example, if your property’s value is Rs. 1 crore, the bank may decide according to its internal rules an regulations and your eligibility, to sanction anywhere between 45-55 percent (more or less in some cases) of an overdraft facility to you.
Overdraft loan can come really come in handy. Here are a few advantages;
• An overdraft helps in keeping a good payment history. Any payment made through a cheque does not bounce due to insufficient funds as the overdraft limit on your account pays off the cash.
• Overdraft is a great option when you need to clear your bills or get out from a debt trap. Even if there is no balance in your account, your overdraft limit will help you to clear that payment.
• An overdraft loan requires less paperwork than other long term based loans, so it is a good idea to take an overdraft loan rather than opting for a loan that will take more time to get approved – especially when it’s urgent!
• Its flexibility is a major plus point when you need access to funds on an immediate basis. An overdraft loan allows you to take money within the overdraft limit for even as less as two to three days.
• It has benefits on the interest costs too. The interest on an overdraft loan is calculated on the basis of the overdraft amount utilized and hence it is a beneficial deal for anyone who wants to get a quick loan on their assets.
JMD Home Loans offers the best overdraft loan services that will benefit you in the times of crises.Contact us now to get maximum benefits with an overdraft facility.