Think of a Business Loan Overdraft Facility as a financial cushion your lender offers. It’s like having an extra stock of cash ready to cover your business expenses when your account balance falls short, an approved higher credit limit that is available to you instantly, or instant loan disbursement at your disposal.

Business OD Does It Work?

Here’s a relatable example: You have INR 5, 00,000 in your business account, but you need to pay INR 10, 00,000 for urgent supplies or a business expense. If you have availed of an Overdraft Facility that sanctions you INR 20, 00,000 usage limit, your lender can lend you the extra INR 5, 00,000 to make the payment. It’s like a short-term loan, that you’ll need to pay back. The best part is that you can utilize or repay the amount at your convenience, with interest being charged only on the utilized amount.