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Bank Overdraft: What is the facility of overdraft in the bank, read how you can take advantage of it

Bank Overdraft Debit Or Credit: Every person has to face sudden financial crisis at some point of time. For this, he goes on keeping his preparations in advance. But what if someone is not prepared? What are the roads left for him? In this news, we will give you information about how to work in times of economic crisis, and how you can overcome this crisis. We are going to inform you about a new banking facility. In this you can easily fulfill your money needs. This is the facility of overdraft facility of the bank.

what is overdraft
Bank overdraft facility is available for both government and private banks. In this, most banks give you this facility on current account, salary account and fixed deposit (FD). Some banks also offer overdraft facility against assets like shares, bonds and insurance policies. Under this facility, you can take the money you need from the bank and can also repay this money later.

will get such facility
If you have already got any FD in the bank then it is fine. Otherwise, you will have to mortgage any of your assets in the bank. After that the bank will give you the facility of overdraft. Nowadays many banks offer overdraft facility to their good customers in advance. Employees who get salary in a month, they get overdraft easily.

can get so much money
Let us tell you how much money you can get while taking an overdraft from the bank. The bank decides on your limit. What have you mortgaged in the bank for this facility? In the case of salary and FD, banks keep the limit higher. For example, if you have made an FD of Rs 2 lakh in your bank, then the bank can set a limit of Rs 1.60 lakh (80%) for overdraft. In the case of shares and debentures, this limit is 40 to 70 percent.

what is the advantage
It is considered much cheaper in case of credit card or other personal loan. In this you have to pay less interest. In the second overdraft, you have to pay interest only for the time for which you take the money.

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