The financial challenges brought about by the COVID-19 pandemic and economic recessions have highlighted the need for effective financial planning. Many individuals have realised the importance of having a reliable financial safety net to manage unexpected expenses.
Shived, a business head at an NGO, is among them. For him, a personal loan overdraft facility has proven to be the ideal solution for such situations. This article explores how Shived effectively managed his finances using this facility.
But first, let’s understand what a personal loan overdraft facility entails.
What is a Personal Loan Overdraft Facility?
A personal loan overdraft facility is a type of credit line provided by financial institutions that allows individuals to borrow money up to a certain limit. Unlike a standard personal loan, where the entire loan amount is disbursed at once, an overdraft facility enables you to withdraw funds as needed. Interest is charged only on the amount withdrawn, not on the total sanctioned limit. This feature makes it an attractive option for those who require flexibility in their borrowing.
How Did a Personal Loan Overdraft Facility Help Shived?
Shived, the business head for the B2C vertical of an NGO, began his career in 2005. During the recession and post-COVID-19 period when expenses skyrocketed and uncertainty loomed large, he realised the importance of saving, investing, and planning for contingencies like sudden hospitalisations. For Shived, the perfect tool in such scenarios was the personal loan overdraft facility from Tata Capital.
He found this financial product particularly useful when he switched jobs a couple of years ago and needed to pay off some liabilities. By utilising the personal loan overdraft facility, Shived managed his financial obligations efficiently.
Shived found that the personal loan overdraft facility was very accessible. With just a few clicks on his phone, the funds were available whenever needed. The ease of access and usage, along with the availability of funds at his disposal and a lower interest rate, made it an ideal choice for him.
What are the Advantages of a Personal Loan Overdraft Facility?
Easy repayment options – Borrowers only pay interest on the amount they use. Some lenders also offer a part-payment facility without extra charges, providing more control over repayments.
Convenient tenures – A personal loan overdraft facility offers flexible tenures ranging from 12 to 84 months. Additionally, the credit limit and dropline overdraft period are predetermined, giving clear and predictable repayment terms.
Quick access to funds – The facility provides quick access to funds, which is essential during emergencies or unexpected financial requirements.
High loan amounts – A personal loan overdraft facility allows access to large sums of money, which can be helpful in expanding a business, covering urgent personal expenses, or managing other significant financial needs.
Multiple withdrawals via online transactions – Unlike regular loans, which allow a one-time withdrawal, this facility lets borrowers withdraw and repay funds multiple times, offering greater flexibility.
What are the Eligibility Criteria for a Personal Loan Overdraft Facility?
Eligibility for a personal loan overdraft facility may vary between lenders, but generally, the criteria include:
Applicants should be between 21 and 58 years old.
The applicant must have a credit score of 725 or above.
eBoth salaried and self-employed individuals can apply, but proof of employment or business ownership may be required.
Final Thoughts
The personal loan overdraft facility is a versatile financial tool that can provide much-needed flexibility and convenience for managing finances. As demonstrated by Shived’s experience, it can be a lifeline for individuals facing temporary financial challenges. By allowing borrowers to withdraw only what they need and repay conveniently, it helps them sail through unforeseen emergencies smoothly.
If you’re seeking a reliable and flexible financial solution, consider Tata Capital’s personal loan overdraft facility. With attractive interest rates, minimal documentation, and easy eligibility criteria, our personal loan OD facility offers the support needed to navigate financial uncertainties effectively.
Visit the Tata Capital website or download the Tata Capital App today to apply for a personal loan OD facility and manage your finances effectively, just like Shived!
19 July 2024
4 mins read
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