Bank overdraft facility: Many times people have to face difficulties when they need money, especially when their bank account is empty. In such a situation, people often think of taking loans. However, many banks provide their customers overdraft facility. This is a facility in which money can be withdrawn from the bank despite having zero balance in the account.
What is bank overdraft facility? Overdraft (OD) is a type of loan given by the bank to customers. Its specialty is that it does not require separate application and it is available immediately. Customers can withdraw money from their ATM to the limit fixed by the bank. The difference between overdraft and general loan is that interest on the loan is charged on a monthly basis, while the interest on overdraft is on daily basis. Due to this, the total interest amount can be higher by using the overdraft. Therefore, this facility should be used carefully.
Who get this facility? If you have run the basic savings account actively for at least six months, you can easily get an overdraft of up to Rs 10,000. Your bank account must be linked to Aadhaar number. This facility is also available for Jan Dhan account holders. The age of the applicant should be between 18 and 65 years.
Necessary advice: Whenever you open an account in the bank, ask about the overdraft facility. This will give you financial security and additional money will be easily received in casual conditions.
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