Tata Capital Overdraft Account

You never know when a financial emergency can make your life full of stress. Such a situation can fill your surrounding with despair and money becomes the topmost priority. Overdrafts can solve short-term financial problems for small businesses. However, it is important to know when an overdraft is useful and when it can be disastrous.

An overdraft allows the individual to continue withdrawing money even if the account has no funds in it or not enough to cover the withdrawal. Basically, overdraft means that the bank allows customers to borrow a set amount of money.

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OverDraft Features

  • Can be availed quickly Overdrafts work great as short term loans. In fact, by utilising the overdraft facility, you can save quite some money in interest payments. This is because, unlike regular loans, the interest is calculated only on funds that are utilised. So if you are in need of short-term funds, it may be wise to opt for an overdraft instead of a regular Personal loan. Due to the minimal paperwork and its flexible nature, overdrafts are quite useful in emergencies. But you must ensure that the amount is incoming and that you will be able to clear it within a few days.
  • Manage cash flows Overdrafts come in handy for companies that have multiple cash flow cycles within a single month. In other words, if the company has many sale and purchase cycles in a month, there can be a mismatch in cash flows. For example, you may receive your payments on a monthly basis, whereas your suppliers need upfront payment (every 10-15 days). An overdraft facility can help to manage cash flow gaps in such situations.
  • Emergencies Sometimes a company find itself in a situation wherein it has not received money for the sale of goods but it has to still pay for raw materials. Now imagine the company has no money to pay its vendor, at least until its next revenue date. Instead of looking for credit elsewhere, the company can simply take an overdraft to pay its vendor. This way, it can manage to pay vendors even if it has zero balance in the account.
  • Working capital requirements: strict No-No Many small businesses fail because they are not able to manage their working capital needs. It doesn't matter whether a company has brilliant plans five years down the line if it doesn't have the money to keep the machines running today. Some companies wrongly assume that taking an overdraft can solve their problems. Well, it could possibly help for a day or two, but once the money dries up, it is back to square one. There is no replacement for good business sense.

Overdrafts work great as short-term funds; but only if you are certain about repayment. Otherwise, the interest rates can eat up a big chunk of the company's income. In such situations, a working capital loan is a better option than an overdraft. So the next time you are in a dilemma about whether to opt for an overdraft or not, keep the above tips in mind.

Documents Required to Process the Overdraft Account

For Overdraft Account, Tata Capital requires documents for verification that proves the authenticity of the borrower. Following are an overview of the documents generally asked while applying for a Tata Capital Overdraft Facility:

 Identity Proof - PAN / Aadhaar / Voter ID / Driving License / Passport Copy.
 Current Address Proof - Driving license/ Passport Copy/ Latest Gas Bill with Gas Bond / Latest Property Tax Bill / Bank Passbook / Ration Card.
 Age Proof - Pan Card / Aadhaar Card / Voter ID card / Passport Copy / Any Other Statutory authority Certificat.
 Bank Statement - Latest 3 Months Bank Statement required.
 Company ID - For Employment Proof.
 Salary Payslips - Last 3 Months.
 Photo Copy - One Passport Size Photo.

Eligibility Criteria for Tata Capital Overdraft Facility

For Overdraft Facility, eligibility will differs bank to bank. The eligibility will also gets differs with requirements and needs. Below are eligibility criteria to get an online Overdraft facility approval for salaried and self-employed individuals are listed:

 Age - Minimum 23 years – Maximum 60 years.
 Employement - You must be Salaried Employee.
 Company - Company must be 2-3 years MCA registered.
 Bank Account - Should Have An Active Bank Account.
 Income - Stable employment with regular income of >= 40,000/PM in active bank account.
 CIBIL Scores - Should have a decent and good Credit Record*.

Difference between Tata Capital Overdraft Facility and Regular Loan

Any indivisual who is in search of urgent funds from banks should know that Overdraft Facility is best option. It is difficult decide whether Normal Loan is best or Overdraft facility is best, the below information clears the difference between Normal Loan and Overdraft Facility:

 Funds Withdrawal: - An overdraft facility is a form of credit which is offered to an Salaried individual based on a current account. In addition, the amount which is withdrawn varies depending on the customer’s requirement. However, a regular loan talks about a fixed amount which is borrowed from a specific bank highlighting a stated repayment duration.
 Rate of Interest: - Considering an overdraft, the rate of interest is charged specifically on the borrowed overdraft amount and not on the stated limit; however, for a regular loan, the rate of interest is applied on the whole amount borrowed, regardless if it is completely utilized or not.
 Duration: - An overdraft is accessed for a lesser duration and the candidate isn’t allowed to borrow large amounts due to limits on credit. On the other hand, a loan is accessible for a longer period, ranging from 3 to 5 years, with the availability to take large sums.
 Flexible Repayment: - Overdraft Accountis flexible to repayment. You can call it more flexible when considering the payment scheme, this payment option would be made possible in a lump sum which can be shut anytime. With regular loans, EMIs are involved that need to be paid on a schedule. If the EMI payments are not made timely, it can harm the customer’s credit ratings..

Why opt for an Overdraft Facility?

 EMI: - Pay EMI only on the amount used.
 Quick Process: - Quick Disbursal within 48 Hours of Application.
 Collateral Free: - Unsecured Loans that are absolutely collateral-free
 Fund Utilization: - Utilize funds for any purpose without any regulation from the Lender.

Simple Overdraft Process

Turning Money Problems Into Solutions
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Choose Loan Amount

Choose your loan amount and terms to use loan

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Provide Document

Need to provide some basic document to verification

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Approved Loan

Our loan specialist ask fews question and verify docuements.

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Get your Money

Once loan aprroved you get loan amount credit.