Tata Capital OverDraft Account

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.

    Eligibility criteria to get overdraft facility include:
  • Minimum net monthly income is Rs. 40,000/-,
  • your company is on our approved list for overdraft facility
  • Must have descent cibil score
  • You must be a regular customer with a bank which means you need to have a running account
  • **Offers on specific models. Terms & conditions apply.

The following Documents are required for Overdraft Account:

  • Address Proof
  • Last 3 months bank statement of bank accounts of company
  • Last 3 months payslips

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.