1. Flexible Borrowing: Allows account holders to withdraw more than their current account balance up to a predetermined limit.

2. Interest Rates: Interest is typically charged only on the overdrawn amount and for the duration it is outstanding, making it cost-effective compared to personal loans.

3. Quick Access to Funds: Overdrafts can often be accessed immediately, providing quick financial relief in emergencies.

4. Repayment Flexibility: Borrowers can repay the overdraft at their convenience, as long as they meet the minimum repayment requirements.

5. Renewable Facility: Many banks offer overdraft facilities that can be renewed upon maturity, subject to terms and conditions.

6. No Collateral Required: Generally, personal overdrafts are unsecured, meaning you don’t need to provide collateral.

7. Credit Limit: The limit is based on the customer’s creditworthiness and account history, ensuring tailored access to funds.

8. Monthly Statements: Customers receive regular statements, helping them track their borrowing and repayment effectively.

9. Usage for Various Needs: Overdrafts can be used for a range of personal expenses, such as medical emergencies, home repairs, or education fees.

10. Availability for Salaried and Self-Employed: Both salaried individuals and self-employed professionals can apply, although terms may vary.

11. Account Linkage: The overdraft is typically linked to a current or savings account, providing seamless access to funds.

1. Immediate Access to Funds: Personal overdrafts provide quick access to cash when needed, making them ideal for emergencies or unexpected expenses.

2. Flexible Borrowing: You can withdraw up to your approved limit without the need to apply for a new loan each time, offering convenience and flexibility.

3. Interest Only on Utilized Amount: Interest is charged only on the amount overdrawn, not on the total limit, making it a cost-effective option compared to traditional loans.

4. No Collateral Required: Personal overdrafts are typically unsecured, meaning you don’t have to provide assets as collateral, reducing the risk involved.

5. Simplified Repayment: You can repay the overdraft amount at your convenience, allowing for better cash flow management.

6. Supports Financial Planning: By providing a safety net, overdrafts can help individuals manage their finances and avoid falling into debt traps during cash shortages.

7. Enhances Credit Score: Responsible use of an overdraft can positively impact your credit score, demonstrating good credit management.

8. Convenience of Use: Linked directly to your bank account, overdrafts can be accessed through ATMs or online banking, making them easy to use.

9. Tailored Limits: Overdraft limits are based on individual creditworthiness and banking history, ensuring that the facility aligns with your financial situation.

10. Useful for Various Expenses: Overdrafts can be used for a wide range of personal expenses, from medical bills to educational costs, offering versatile financial support.

11. No Need for Extensive Documentation: The application process for a personal overdraft is often simpler than that for a loan, requiring minimal paperwork.

Age: Applicants must typically be at least 21 years old and may need to be less than 60-65 years old, depending on the bank's policies.

Income: A stable source of income is essential. This can be from a salaried job, self-employment, or business. Banks usually require proof of income, such as salary slips or income tax returns.

Credit History: A good credit score (usually 700 or above) is important, as it reflects your creditworthiness and repayment capacity. Banks will review your credit report to assess this.

Bank Account: You must have a current or savings account with the bank offering the overdraft facility.

Employment Status: Some banks may prefer salaried individuals with a permanent job, while others may also consider self-employed individuals or professionals.

Documentation: You will need to provide necessary documents, including identity proof, address proof, income proof, and bank statements.

Existing Relationship with the Bank: Having a good banking history and relationship with the bank may enhance your chances of approval.

Other Factors: Some banks may consider additional factors like your existing liabilities, monthly expenses, and overall financial health.