Overdraft Facility – Flexible Funds for Daily Business Needs
Access extra funds from your account to manage vendor payments, salaries, and inventory. Pay interest only on what you use with no fixed monthly EMIs.
- Credit limits up to ₹50 Crore based on turnover
- Pay interest only on the amount you withdraw
- No fixed monthly installments or prepayment fees
- Compare offers from 50+ banks and NBFCs
Secure & Compliant
Fast Limit Setup in 3–5 Days
No Hidden Charges
50,000+ Happy Borrowers
Apply for an Overdraft Facility!
Fill out the details below to check your eligibility for a business overdraft.
Key Benefits of an Overdraft Facility with Creditcares
Compare fifty lenders for fair interest rates.
Get fast approvals with zero hidden charges.
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About the Loan
What is an Overdraft Facility?
An overdraft facility is a revolving credit line linked to your business current account. It allows you to withdraw more money than your actual balance, up to a pre-set limit. This is a helpful tool for businesses that need to manage short-term cash flow gaps without taking a long-term loan.
The main advantage is the interest calculation. You only pay interest on the specific amount you use and for the number of days you use it. When you deposit money back into your account, the used limit is automatically repaid, and your interest cost goes down immediately. There are no fixed monthly EMIs, giving you full control over your repayment.
At Creditcares, founded in 2012, we help you find the right overdraft limit for your business. We compare offers from 50+ banks and NBFCs to ensure you get a fair interest rate and a limit that matches your actual business turnover and needs.
Secured Overdraft
Unsecured Overdraft
This facility requires you to provide security, such as property, fixed deposits, or stocks. Because it is backed by an asset, banks often offer a higher credit limit and a lower interest rate. It is a stable way to get large-scale funding for your business.
An unsecured overdraft does not require any collateral or assets. Lenders approve this limit based on your business vintage, banking history, and monthly turnover. While the limit may be lower than a secured option, it is a faster way to get funds without pledging property.
Who can apply
Who Can Apply for an Overdraft Facility?
We help different types of businesses get the liquidity they need to run daily operations smoothly. Whether you are a small shop owner or a large manufacturer, an overdraft can act as a financial cushion.
Shop owners who need to buy inventory or pay suppliers before their customers pay them back.
Industrial units needing funds to purchase raw materials or pay for labor and utility bills on time.
Service Providers & Institutions
Firms managing monthly costs like rent and salaries while waiting for client payments to arrive.
Registered small businesses looking for a flexible credit line to handle unexpected operational expenses.
Doctors, CAs, and architects who want to manage their practice costs or upgrade their office equipment.
Overdraft Facility Eligibility Criteria
To get an overdraft limit, lenders check your banking habits and business stability. You must show a steady flow of transactions in your current account. A good credit history and timely payment of past debts are also important for getting a high limit at a fair rate.
Documents Required for an Overdraft Facility
Organizing your paperwork helps us get your limit approved faster. Most banks require standard business proof and bank statements to assess your credit needs.
Identity & Address Proof (any one each):
• Aadhaar Card, PAN Card, Passport, Voter ID, Driving Licence
GST certificate, Trade Licence, or Udyam Registration showing your business name.
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Last 12 months’ statements of your primary current account for limit assessment.
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Past 2 to 3 years of Income Tax Returns (ITR) and audited financial reports.
Title deeds or lease papers if you are applying for a secured overdraft.
How to Get an Overdraft in 6 Simple Steps
Our process is designed to be clear and straightforward, so you can focus on running your business.
Step 1 — Initial Discussion
Share your business details and turnover with our advisors to understand the potential overdraft limit you can get.
Step 2 — Document Preparation
We help you gather the necessary bank statements and business proofs required for the bank’s review process.
Step 3 — Compare Bank Offers
We check your profile with 50+ lenders and provide a comparison of interest rates and annual renewal fees.
Step 4 — Application Submission
Once you choose a lender, our team submits your file and handles all the follow-ups with the bank.
Step 5 — Credit Assessment
The bank reviews your banking history and turnover. For secured limits, they may also perform a property valuation.
Step 6 — Limit Activation
After approval, the bank sets the limit on your account. You can then withdraw funds whenever your business needs them.
Our Trusted Bank & NBFC Partners
We partner with the leading financial institutions in India to provide reliable overdraft solutions:
State Bank of india
Bank of Baroda
Punjab National Bank
Canara Bank
Union Bank of India
Bank of India
HDFC Bank
ICICI Bank
Axis Bank
Kotak Mahindra Bank
IndusInd Bank
Yes Bank
Bajaj Finserv
LIC Housing Finance
Tata Capital
Piramal Finance
Muthoot Finance
Aditya Birla Capital
State Bank of india
Bank of Baroda
Punjab National Bank
Canara Bank
Union Bank of India
Bank of India
HDFC Bank
ICICI Bank
Axis Bank
Kotak Mahindra Bank
IndusInd Bank
Yes Bank
Bajaj Finserv
LIC Housing Finance
Tata Capital
Piramal Finance
Muthoot Finance
Aditya Birla Capital
Disclaimer: Whether you need a small unsecured limit or a large overdraft against property, Creditcares helps you compare and apply in one place. Our partnerships ensure you get the most suitable credit limit for your specific business requirements.
What Can You Use an Overdraft For?
An overdraft facility provides the flexibility to pay for any business-related cost. It is a revolving fund that supports your daily working capital.
Buying Fresh Inventory
Use the limit to stock up on goods before a busy season without waiting for your current sales.
Paying Monthly Salaries
Ensure your staff gets paid on time even if your clients delay their invoice payments.
Purchasing Raw Materials
Keep your production line running by paying suppliers for materials exactly when you need them.
Managing Utility Bills
Pay for rent, electricity, and maintenance costs without letting them pile up and affect your work.
Handling Tax Payments
Use the funds to pay your GST or other taxes on time to avoid penalties and late fees.
Unexpected Business Costs
Keep a safety buffer for emergency repairs, sudden equipment failures, or urgent market opportunities.
Frequently Asked Questions — Overdraft Facility
Find clear answers to common questions about how an overdraft facility works and how it can support your business. This section explains interest calculations, renewal processes, and the differences between secured and unsecured limits. Whether you are looking for daily liquidity or a financial safety net, these details will help you decide if an overdraft is the right choice for your business needs.
Q1. How is interest calculated on an overdraft?
A: Interest is calculated on the daily average balance you have used. If you have a limit of ₹10 Lakh but use only ₹2 Lakh for five days, you pay interest only on ₹2 Lakh for those five days.
Q2. Is there a fixed monthly EMI for an overdraft?
A: No, there are no fixed EMIs. You can repay the used amount at any time by depositing funds into your account. There is no set date for repayment of the principal amount used.
Q3. Can I get an overdraft without any collateral?
A: Yes, many banks and NBFCs offer unsecured overdraft facilities based on your business turnover and bank statement history. These limits are usually smaller than those backed by property.
Q4. What is the renewal process for an overdraft?
A: Overdraft limits are generally sanctioned for one year. At the end of the year, the bank reviews your account performance and financial reports to renew the limit for another term.
Q5. How is an overdraft different from a business loan?
A: A business loan gives you a lump sum amount with fixed EMIs. An overdraft is a limit that you can use and repay multiple times, paying interest only on the utilized part.
Q6. Are there any hidden charges in an overdraft?
A: Most lenders charge an annual processing or renewal fee. At Creditcares, we ensure the entire process is transparent so you know all costs before signing the agreement.