How to get overdraft facility in Axis bank – OD

Are you looking for an overdraft facility in Axis Bank Account? If yes, you are landed at the right place. This article is especially for those people who are not having a perfect idea about Axis Overdraft Facility.

Overdraft facility is one of the schemes offered by the banks to its customers, where customers can avail of overdrafts up to a sum of specified limits. They can also avail this facility. Axis Overdraft Facility is very much useful to overcome our financial crisis.

what is overdraft facility in Axis bank?

An overdraft facility is a special arrangement offered by the bank to its higher net-worth clients whereby the latter is allowed to withdraw or make payments from their current accounts in excess of their current account balances.

In simple words, an overdraft facility means borrowing from your banks for paying your bills. It is an additional facility given by the bank to their high net-worth clients, which is to be paid back at a short fixed term. Some banks charge nominal interest on such loans or even no interest at all if you maintain a minimum monthly balance amount.

Axis Bank

The Benefits of Using an Axis bank Overdraft Facility

1. It charges interest only on the utilized amount, which means that if the amount borrowed exceeds the amount available to pay it, interest will be levied on the excess amount.

2. Axis bank Overdraft Facility makes it easy for anyone to manage cash flows in the most efficient way possible.

3. It is very simple and easy with no paperwork or collateral required.

4. The interest will apply on the overdrawn amount from day one.

5. Axis Overdraft facility has no minimum monthly repayment like a fixed deposit.

6. OD repayment occurs when you borrow more than you have in your account. You usually have to pay interest on the amount you borrow and the amount overdrawn. However, you do not have to repay the overdraft amount like you repay a loan. Some financial companies may charge interest on the amount overdrawn, but others won’t. Make sure you read the fine print before you borrow.

Eligibility Criteria:

  1. The applicant must be at least 21 years of age; some OD facilities have 24 years.
  2. Good Cibil Score – For FD and Security facility Cibil score is not required.
  3. Must be Axis bank Existing Customer.

How to get overdraft facility in Axis bank?

Axis bank offers different kinds of loan facilities that suit the customer’s needs. Overdraft Facility is one of the best services of Axis bank. The main advantage of this service is that no prepayment charges are accrued.

You will be able to apply for OD online, but only to a limited extent; for some OD, such as property and salary overdrafts, you must visit the local Axis bank with the required documents.

How to acquire an axis bank overdraft facility may be discussed under each form of OD facility.

The documents include:

1. Proof of identity ( name, date of birth like PAN Card ).

2. Proof of address ( address of primary residence like Adhar Card ).

3. Proof of income ( pay slip or Bank statement ).

4. Proof of assets ( important items you own or have access to ).

Classification of Overdrafts

Overdrafts are classified into two types.

An overdraft facility may be granted to a borrower on either a secured or unsecured basis.

  • A secured overdraft facility requires that the borrower put up some kind of collateral, such as property or bond certificates, that the lender agrees to hold as collateral until the full amount of the overdraft is paid. In simple ( If the borrower is unable to repay their overdraft then the lender can sell off their assets to recover the amount )
  • An unsecured overdraft facility does not require collateral and may be granted to a borrower without any kind of agreement between the borrower and the bank.

Types of Axis bank OD facility & Apply

Overdrafts are amongst the largest financial services at present. Axis Banks offers this facility to their customers mainly to offer safety to them against credit risks however, safety also comes with risk. So that you can avoid choosing the right overdraft. The main types of overdrafts are explained below in detail.

Overdraft (OD) against Property

An overdraft loan is a short-term loan that is granted against the security of some asset as collateral. Axis Overdraft facility against property as collateral is a type of secured loan which can be easily availed if you own a house or any other property. This type of loan will help you to tide over any kind of financial distress and give you time to search for another source of finance. 

The loan amount sanctioned under the Overdraft is not given instantly; it is released in instalments against the security. Also, interest is charged during the period of dispatch which depends upon the creditworthiness of the customer and the tenure for which the loan is sanctioned.

If you are planning to apply for an Axis Overdraft Facility Against Property, it is important that you review the application form and the agreement form carefully.

Mode Of Apply: Visit Branch

If interested Fill the Form: Register

Visit Page And Click Apply Now

Apply Now

To more about it Visit Axis bank official website Property loan Page

Overdraft Facility (OD) against Fixed Deposit

If you go and avail an overdraft against your FD, then you can easily get away with 75% of the sanctioned amount, which is way higher than the highest that a normal loan offers. For instance, if you have a fixed deposit worth Rs. 5 lakhs, you can get up to Rs. 3.75 lakhs as an overdraft against that deposit.

This is only possible due to the fact that there is no documentation involved in such borrowing. The interest charges on such loans will also be lower than normal personal loans because the sanction itself is higher.

Mode of Apply: Online

To know more details about OD against FD Such Documents Required, Apply using Axis bank’s 24*7 instant loan method – Read: How to apply for Overdraft (OD) against Bank FD in Axis bank? – Detail

Overdraft (OD) against Securities

If you are looking for money against your fixed deposit, then you can consider your existing mutual funds, bonds, insurance policy as an alternate source to raise the OD. First of all, you have to understand that there are two types of insurance policies viz, Term Plan and Whole-life Plan. The former caters to provide insurance cover during the time period mentioned in the policy.

However, the latter type of policy helps in providing cover for your entire lifetime. You can avail of a bank overdraft against the term plan provided you stay invested in it. The loan amount depends upon the surrender value of your insurance policy.

Mode Of Apply: Visit Branch

If interested Fill the Form: Register

Register Form

Read more about OD against Security in Axis

Overdraft (OD) against Equity

The overdraft against shareholder’s funds is an intermediary between unsecured loans and secured loans. Equity is not preferred as an option for collateral however it is possible to attain an Axis overdraft facility through it.

The reason for this is that equity rises and falls with market trends making it unreliable as a collateral option. This fluctuates and can end with a smaller amount that can be borrowed.

It is also expensive and does not carry good interest rates. For an individual who draws loans regularly for short-term purposes, borrowing against his/her equity may not be the best decision. The loan obtained at high interest rates will cut into the returns on investments thereby making the project unprofitable.

Mode Of Apply: Visit Branch

If interested Fill the Form: Register

Overdraft against your Salary

Banks allow you to overdraft against your salary and charge a nominal fee for the facility and if you stay within the limit. This OD facility is really helpful to meet the short-term funding needs of individual banks. They usually use the salary account as the primary source to determine an overdraft limit which is 2-3 times your salary.

It should be noted here that Axis salary overdraft is available only to salaried persons as self-employed persons are not eligible for this type of loan facility. This kind of facility is suitable for meeting emergency expenses like medical bills, school fees, sudden repairs to your car or unforeseen travel-related costs.

Mode Of Apply: Visit Branch

If interested Fill the Form: Register

Overdraft (OD) against Rental Agreement

Lease rental discounting is another cost-effective way of raising Overdraft funds compared to what you would normally obtain from traditional sources. This method of finance is evidently more suited for organizations with extensive mortgage portfolios, rather than individuals or companies without any tenant agreements.

Mode Of Apply: Visit Branch

If interested Fill the Form: Register

Unsecured Dropline Overdraft (OD)

If you are a doctor or CA or other professional, you can avail of an overdraft facility from Axis Bank that’s tailored for your profession. This facility gives the flexibility to repay at your convenience without any conditions.

Interest is charged only on the amount used, thereby reducing the interest burden over time. Beginning Year 2 onwards, every 3 months, there would be a proportional reduction of Axis bank overdraft line; thus, delivering better cash flow management post the second year of your loan tenure.

Mode Of Apply: Visit Branch

If interested Fill the Form: Register

Read more about Unsecured Dropline

Conclusion

Thank you for reading this blog. I hope that it has inspired you to get out and have some fun. My goal with this blog is to help people improve their financial literacy so they don’t end up in financial trouble. Knowledge is power, and the more you know about your finances the better able you will be to take control of your situation and live well.

If you have any questions or would like more information, feel free to comment. I would love to hear from you.

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