Interest Only on What's Drawn
The sanctioned limit itself doesn't cost you anything—only the amount you actually use does.
Banks Overdraft Loan
Draw Only What You Use, Pay Only for the Days You Use It
An overdraft against your fixed deposit, property or salary account gives you standby liquidity with no fixed EMI—interest is charged only on what's outstanding, only for the days it stays that way.
Up to ₹50LIndicative limit, against security
Daily reducing interestOn the utilised amount
RenewableReviewed annually
Before you apply
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Have an FD, property or salary account to offer as security
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Need standby liquidity, not a lump-sum loan
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Comfortable with interest that varies by usage
Why it works
No EMI Pressure, Just Interest on What You Draw
An overdraft isn't a loan you repay in fixed instalments—it's a limit you dip into and repay flexibly, on your own timeline.
No Fixed EMI
Repay whenever you can, in whatever amount works—there's no monthly instalment schedule to keep up with.
Renewable, Not Rebuilt
Lenders typically review and renew the facility yearly, rather than making you reapply from scratch.
Overdraft types
What You Can Secure It Against
The security you offer shapes the limit, rate and how the overdraft is structured.
FD-Backed Overdraft
Draw against your fixed deposit while it continues to earn its own interest.
Property-Backed Overdraft
A larger limit secured against residential or commercial property you own.
Salary-Linked Overdraft
A smaller standby limit tied to your salary account with your existing bank.
Daily Reducing Interest
Interest is calculated daily on the outstanding balance, dropping the moment you repay.
Auto-Sweep Facility
Some accounts automatically sweep surplus balance in to cut down your outstanding interest.
Annual Renewal Review
Most facilities are reviewed once a year, based on the security's current value and your usage.
Eligibility
Where Do You Stand?
General guidelines lenders weigh for an overdraft facility. Actual criteria differ by lender and are confirmed during assessment.
Who typically qualifies
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Eligible securityAn FD, property or salary account the lender accepts as collateral.
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Security valueThe limit offered is usually a percentage of your asset's value.
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Banking relationshipAn existing account, especially for salary-linked overdrafts.
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IncomeProof of income to support responsible use of the facility.
What strengthens your case
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Credit scoreA healthy score can support a larger limit or better rate.
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Clear asset titleFor property-backed overdrafts, an unencumbered, clear title.
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Complete KYCPAN, Aadhaar and address proof kept current.
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Clean banking recordNo recent cheque bounces or overdue remarks.
Documents
Sorted by the Security You're Offering
Pick the category closest to yours. Requirements can still shift slightly by lender.
- PAN card and Aadhaar, or another valid ID
- Original fixed deposit receipt
- Lien-marking authorisation for the lender
- A recent passport-size photograph
- PAN card and Aadhaar, or another valid ID
- Property title deed and chain of documents
- Latest property tax receipts
- Income proof (salary slips or ITR)
- PAN card and Aadhaar, or another valid ID
- Salary account statement, last 6 months
- Latest 2–3 months' salary slips
- Employee ID or an HR-issued letter, if requested
How to apply
From Offering Security to Drawing Funds
Choose your security type
Tell us whether you'll offer an FD, property or your salary account.
Get the limit assessed
The lender values your security and confirms the overdraft limit you can access.
Sign the overdraft agreement
Review the terms, interest calculation method and renewal cycle before signing.
Start drawing as needed
Access funds from your overdraft account whenever a need comes up.
Repay flexibly
Interest adjusts daily as you repay—there's no fixed instalment to track.
Estimate the cost
See What Drawing From Your Overdraft Might Cost.
An overdraft doesn't have a fixed EMI—interest builds up daily on whatever you've drawn. Move the sliders to see an illustrative interest cost.
Example only—not an offer or approval.
₹25K₹50L
1 day365 days
8%16%
Estimated interest cost₹
3,890for the amount and days above, at an illustrative rate
Apply Now
FAQs
Overdraft Questions, Answered
Usually on the daily outstanding balance—so it drops the moment you
repay, rather than being fixed for the month regardless of what you owe.
Some lenders charge a small non-utilisation or renewal fee; others
don't. This is disclosed clearly before you accept the facility.
The lender can adjust the outstanding amount against your FD, since it's
pledged as security. This is standard for any secured overdraft.
Most lenders review it annually based on your usage and the current
value of your security, rather than renewing it without any review.
Yes, within your sanctioned limit and tenure, that's the core idea—repay
and redraw as often as you need.
Generally, yes—the FD continues to accrue its own interest even while
lien-marked, though this depends on the specific bank's policy.