Highlights
- Many Banks Offer Overdraft Facility to Salaried Individuals
- The Facility is Offered Generally to Corporate Salary Account Holders
A financial emergency can anytime knock at your door, leaving you motionless, hence giving you no time to arrange funds even from your own deposits or savings. And, to tackle such harsh and critical situations, many renowned banks offer the overdraft facility against assets like property, fixed deposits, mutual funds and insurance holdings. Well, if we go deep down into the subject, there are multiple reputed banks, which are here to offer best overdraft facility accounts for salaried. Yes, such lenders provide the facility of overdraft against salary accounts that allow the account holders to withdraw funds more than what is maintained in their accounts.
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Moreover, in order to enjoy this facility, the account holders need to apply separately to the bank while also paying a one-time processing fee to the lenders. Well, under the salaried overdraft facility, banks usually extend the credit, based on the take-home salary of the account holder. And, it is usually 2-3 times of the monthly income/salary of the account holders. However, the above stats vary from bank to bank. So, if you are a salaried individual, looking for an overdraft facility but don’t know which bank offers the best facility, nothing to worry as we are here to help. That’s Right! To make things easy and clear for you, we have prepared a table below, showing best overdraft facility accounts for salaried. So, what are you waiting for? Let’s get started…
Best Overdraft Facility Accounts for Salaried
| Bank Name | Name of Overdraft Facility | Interest Rates | Loan Amount (in ₹) | Tenure | Processing Fee |
|---|---|---|---|---|---|
| State Bank of India (SBI) | SBI Maxgain Xpress Credit Personal Loan | 9.15% - 11.30% 11.00% - 14.00% | Above 20 lakhs- Up to 3 Crores 25,000-15 Lakhs | Up to 30 Years Up to 5 Years | 0.35% of loan amount plus GST to maximum ₹10,000 plus GST 1% of the loan amount + GST |
| HDFC | Smartdraft (Only for those maintaining salary account with HDFC) | As applicable by the bank | 25,000-1 Lakh | As applicable by the bank | As applicable by the bank |
| ICICI Bank | ICICI Bank Home Overdraft Salary Overdraft (Only for those maintaining salary account with ICICI) | Linked to Benchmark Rate As applicable by the bank | 5 Lakh-1 Crore Up to 4 Lakh | As applicable by the bank As applicable by the bank | As applicable by the bank As applicable by the bank |
| Axis Bank | Overdraft Facility Against Property | Starting from 12.0% | 5 Lakh-5 Crore | As applicable by the bank | 1% of the loan or Rs.5,000 whichever is higher |
Which Account Type Allows Overdraft Facility for Salaried?
This is a type of an overdraft facility, which is usually extended to salaried individuals. However, banks generally prefer to offer this facility to only those salaried individuals who are also having a salary account in that respective bank. With the help of this facility, the account holders can withdraw or issue cheques for an amount in excess of what is maintained in their salary account.
How to Apply for an Overdraft Facility for Salaried?
For availing this facility, the salaried individuals/salary account holders need to separately apply at the concerned bank branch or can download the form online.However, the salaried individuals can also apply for this facility at the time of opening the account with the bank. In order to process your request for this facility, many banks also charge a one-time processing fee of 1% of the loan amount, which can also vary from bank to bank.
