Are you low on liquid cash? Loan Shoan Is Here With Overdraft Loan in India

An overdraft loan is a credit facility provided by private and public sector banks in India that allows you to withdraw funds as needed. Loan Shoan assists Borrowers in repaying the withdrawn money at their leisure in India. The interest rate is only levied on the amount deducted from the overall sanctioned OD limit in India.

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Overdraft Eligibility Criteria

  • Bank Account: The applicant must have an existing bank account with the particular bank
  • Minimum and maximum ages are 21 and 65, respectively.
  • A good CIBIL or credit score will be an extra advantage.
  • Income requirements vary per lender.
  • Business existence varies by bank.

Benefits of Overdraft Loan in India By Loan Shoan

The documentation requested by lenders will fluctuate depending on the size of your financial working capital loan and the sort of business you run . We've put prepared a useful guide below. Simply choose your MSME loan size and kind of business , and we will assist you in obtaining business funding with a phone call. Call us today to find out what your credit card limit is.

  • Small amounts of cash can be used in a variety of ways.
  • Aids in the management of a company's cash flow.
  • Short-term borrowing - reviewed every year.
  • Banks/NBFCs do not demand collateral.
  • Only the amount used receives interest.
  • Meets critical cash-flow needs
  • Less paperwork.
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Difference between Overdraft Loan vs Term Loan

Individuals seeking quick loans from banks in India may be interested in knowing about the primary distinction between overdraft Loan and term loan in India. When you have a financial problem, this knowledge will help you decide which is best. The following are the significant differences:

An overdraft Loan option is a type of credit provided to an individual or business based on a current account. Furthermore, the quantity removed changes based on the customer's needs. A regular loan, on the other hand, refers to a preset sum obtained from a certain bank with a set payback period.

An Overdraft Loan is often used for a shorter period of time, and the candidate is not permitted to borrow huge sums owing to credit constraints. A loan, on the other hand, is available for a longer length of time, ranging from 1 to 10 years, with the possibility to borrow huge quantities.

Payment in a lump sum would be feasible under the dropline OD limit facility, which could be terminated at any moment. However, depending on the customer's credit score, the credit limit may vary. When it comes to the payment plan, it might be described as more flexible. EMIs are required for regular loans.

A dropline OD limit is appropriate for meeting working capital demands such as daily finance requirements. Loans, on the other hand, are useful for capital investments such as new buildings, machines, and so on.

When considering an OD Limit, the rate of interest is levied only on the borrowed overdraft amount and not on the whole amount borrowed.

Interest Rates - Fees & Charges

Interest rates, fees, and levies differ from bank to bank and are determined by Loan Shoan as per the applicant's profile and best rate of interest available with each bank at certain time.

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