Indian banks offer an overdraft facility using which individuals can take advances from the bank. This facility can be used in case of financial emergency as advance can be taken even if there is not even a penny in the bank account.
In fact, the overdraft facility is basically a short-term loan facility that allows the customers of the bank to take a small loan to meet an emergency.
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Which banks offer overdraft facility?
State-owned banks like State Bank of India (SBI) as well as one of the top private lenders in the country, ICICI Bank are offering overdraft facility to their customers across India.
How Much Can You Withdraw Using Overdraft Service?
The customers of the bank can avail an advance of up to three times of their monthly salary in times of crisis by using the banking service. However, each bank has different limits, which also depend on the financial profile of the customer.
If you are a salaried individual then you must have received many messages from the bank regarding overdraft facility. Banks usually inform their customers in advance of their limits on using the service. In addition, the service is also not provided to all salaried individuals, and in some cases, the bank only lends a percentage of the employee’s monthly salary.
Terms and Conditions of Bank Overdraft Facility
The Terms and Conditions of Service are a bit complicated. Firstly, only select banks in India offer overdraft facility to individuals. Secondly, this service is provided to the salaried persons having salary bank account with the bank.
Most importantly, the bank also takes a look at the credit scores of the customers before making advance payments to bank accounts. Those who fulfil the conditions can easily use the facility of the bank to handle any unforeseen financial troubles.
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