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Unsecured OD

Unsecured od

Unsecured overdraft Service

An unsecured overdraft (OD) is a financial facility provided by banks that allows account holders to withdraw more money than they have in their checking account, up to a certain limit, without needing to provide collateral. This can be a useful tool for managing short-term cash flow issues or unexpected expenses.

How to Apply

Aged between 21 and 60 years

Having a job and a minimum of 3 months experience

Having a minimum of Rs. 25,000 net income per month.

Documentation Required

Photo Identity Proof

  • PAN Card
  • Passport
  • Voter ID
  • Aadhaar Card

Proof of Residence or Address Proof

  • Aadhaar Card
  • Passport
  • Voter's ID
  • Utility Bills
  • Driving Licence

Income Proof

  • Last 12 months’ statements for current and savings accounts
  • Balance sheet and Profit/Loss Account audited by a registered CA for the last two years
  • Last three years of ITRs - both company and individual

Others

  • PAN Card of the company/partnership firm
  • A certified copy of Partnership Deed agreement
  • GST Registration Certificate
  • Registration of Incorporation
  • Business address proof
  • Articles of Association and Memorandum of Association documents
  • Professional Practice Licence for Consultants, Doctors, etc.

Unsecured OD Balance Transfer

An unsecured overdraft balance transfer involves moving the outstanding balance of your existing overdraft from one bank to another. This can help you take advantage of better terms, such as lower interest rates or more favorable repayment conditions. Here’s a detailed guide on unsecured overdraft balance transfers.

Documents required for a balance transfer

  • Identity proof – Passport, Aadhar Card, Driving License, etc.
  • Address proof – Aadhaar Card, Passport, Voter’s ID, etc.
  • Bank statements - Last 12 months’ statements for current and savings accounts
  • Income proof - Balance sheet and Profit/Loss Account audited by a registered CA for the last two years, last three years of ITRs - both company and individual
  • Business proof - PAN Card, Partnership Deed agreement, GST Registration Certificate, Registration of Incorporation, Business address proof, AoA and MoA, Professional Practice Licence for Consultants, Doctors, etc.

Overdraft

An overdraft facility on your existing loan lets you withdraw extra funds up to a set limit whenever you need them. You only pay interest on the amount you use. Repayment is easy, as you can repay the borrowed amount anytime within the loan’s tenure. This facility is great for urgent financial needs since the money is pre-approved and available immediately. With an existing relationship with your lender, the paperwork is minimal. Timely repayments on your overdraft can also boost your credit score.

Here are some key points about the overdraft facility:

The interest rate for a personal loan is minimal. Furthermore, you only have to pay interest on the portion of the funds that you utilize, not the entire amount. This makes it easier to pay back your debt.

You can borrow immediately because the amount is pre-approved.

There are no restrictions on how you use the money from the loan, so you can use it for any purpose —personal, professional, planned, or unanticipated needs.

Because this facility makes borrowing and repaying easier, you can use it to establish a positive credit history and improve your credit score.

Benefits of Choosing Unsecured Loans

Competitive
Rates

Enjoy low-interest rates starting from 4.99% APR, based on your creditworthiness.

Fixed Monthly Payments

Manage your budget better with predictable payments and no hidden fees.

Quick and Easy Process

Fast approval process with funds available as soon as the next business day.

No Collateral Required

Get the funds you need without risking your assets.

Application Process

Step-1

When you connect with us, we take the time to understand your financial requirements.

Step-2

We help you compare the best unsecured loan offers online and choose the product that suits your needs.

Step-3

Once you choose a product, we help you apply for the loan. All you need to do is to keep your documentation in order.

Step-4

Next, you need to apply online with the chosen bank or NBFC.

Step-5

Once you submit your application, the lender takes some time to process it and verify your documentation.

Step-6

Finally, you receive the loan amount in your account.

Feel free to use our Equipment Finance Calculator

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FREQUENTLY ASKED QUESTIONS

Find Answers to Common Questions

  • Collateral: Secured loans require collateral (e.g., a house or car) which the lender can seize if you default. Unsecured loans do not require collateral.
  • Interest Rates: Unsecured loans typically have higher interest rates because they are riskier for lenders.
  • Approval Criteria: Unsecured loans rely more on credit scores and financial history, while secured loans consider the value of the collateral.

Unsecured loans can be used for various purposes, including:

  • Debt consolidation
  • Home improvements
  • Medical expenses
  • Wedding or vacation costs
  • Educational expenses
  • Business needs

Eligibility criteria vary by lender but generally include:

  • Credit Score: A good credit score (usually 650 and above) is important.
  • Income Proof: Proof of stable income to demonstrate repayment ability.
  • Age: Typically between 18 and 65 years old.
  • Employment Status: Steady employment or business income.
  • Debt-to-Income Ratio: A manageable level of existing debt compared to your income.

Repayment periods can vary from 12 months to 7 years. Some lenders may offer shorter or longer terms based on the loan amount and borrower’s profile.

Approval times can vary. Some online lenders can approve and disburse funds within a day or two, while traditional banks might take several days to a week.

Missing a payment can result in:

  • Late Fees: Lenders often charge late fees for missed payments.
  • Credit Score Impact: Late payments can negatively affect your credit score.
  • Higher Interest Costs: Continued missed payments can lead to increased interest rates and higher overall costs.

Many lenders allow early repayment of unsecured loans. However, some may charge a prepayment penalty. Always check the loan agreement for specific terms.

Yes, common fees include:

  • Origination Fee: A fee for processing the loan, typically a percentage of the loan amount.
  • Late Payment Fee: A fee for missing a payment deadline.
  • Prepayment Penalty: A fee for paying off the loan early (not all lenders charge this).