Pay Interest only for the time you utilize the money
Withdrawal limit reduces each month from initially sanctioned limit
Comes as both secured and unsecured loan
Interest rate is charged on a monthly basis but calculated on daily basis
Can be used on a monthly, quarterly, half yearly or yearly basis
One-time processing fee is charged
Borrowing limit can go up to Rs. 15 crore, however it depends on bank’s sole discretion
FAQs
Q. I am a retailer and run a grocery store in Chennai, can I avail Dropline Overdraft facility?
Ans. Yes, if you are a retailer, trader or manufacturer you can avail Dropline Overdraft depending upon your creditworthiness and business requirements.
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Q. Do I need to maintain good credit score, if I want to avail Dropline Overdraft facility?
Ans. It is always recommended to maintain good credit score, as this facility is a type of unsecured loan so banks majorly rely on the creditworthiness and repayment capacity of the applicant.
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Q. Do I need to submit collateral before taking Dropline Overdraft facility?
Ans. Dropline overdraft facility comes in both secured and unsecured forms, so if you want to take secured loan then collateral is required to be submitted.
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Q. What is the maximum borrowing limit sanctioned by banks or NBFCs?
Ans. The minimum and maximum borrowing limit depends on the applicant’s profile, business requirements, financial history, repayment capability, creditworthiness, etc.
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Q. How Dropline Overdraft is different from overdraft facility?
Ans. In overdraft facility the sanctioned borrowing limit remains the same or does not change until the limit is reached, whereas in Dropline Overdraft the withdrawal limit reduces each month from the sanctioned limit.
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Q. How is the interest rate charged on borrowed amount?
Ans. The interest rate is calculated on a daily basis and charged every month.
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