Over Draft Facility
A business overdraft facility gives you instant access to funds whenever you need them. It's like having a safety net for your business cash flow, withdrawing money even when your account balance is zero, and paying interest only on the amount you use. Perfect for managing working capital, seasonal fluctuations, and unexpected expenses without the hassle of applying for a new loan every time.
Overdraft interest rates are typically lower than personal loans and credit cards, making it a cost-effective solution for short-term funding needs. Compare offers from different lenders to secure the best rates for your business.
Get Instant Access to Funds with Secured Overdraft
Secured overdraft facilities offer higher credit limits and better interest rates by using your business assets as security. With collateral backing, you can access:
Higher Credit Limits: Access substantial funds based on your collateral value to handle large expenses or opportunities.
Lower Interest Rates: Enjoy competitive rates thanks to the security provided by your assets.
Flexible Usage: Use funds as needed and pay interest only on the amount utilized.
Who Should Consider a Secured Overdraft?
Secured overdrafts are perfect for established businesses with valuable assets who need substantial credit limits for managing large transactions, inventory purchases, or seasonal business cycles.
Quick and Easy Unsecured Overdraft Facility
Unsecured overdraft facilities provide instant access to credit without requiring any collateral. Ideal for small businesses and startups, these facilities allow you to:
No Collateral Required: Access funds without pledging your business assets or property.
Instant Availability: Withdraw funds immediately when you need them most.
Pay Only for Usage: Interest charged only on the amount you actually use, not the entire limit.
Who Should Consider an Unsecured Overdraft?
Unsecured overdrafts are ideal for businesses with good credit history and steady cash flow who need flexible access to smaller amounts for day-to-day operations and unexpected expenses.
Key Features of BigMudra Overdraft Facility
Flexible Usage: Use funds for working capital, inventory, payroll, emergency expenses, or any business need.
Credit Limit: High credit limits based on your business profile and financial health.
Collateral Options: Available as secured (with collateral) or unsecured (without collateral) facilities.
Renewal Terms: Easy renewal process with flexible terms based on your repayment history.
Quick Processing: Fast approval and activation for urgent business requirements.
Interest Rates: Competitive rates based on your business profile and relationship with the lender.
Why Choose BigMudra For Over Draft Facility?
Customized Solutions: We tailor overdraft limits and terms to match your specific business requirements.
Transparent Process: No hidden charges, clear terms, and straightforward interest calculations.
Expert Support: Our financial advisors help you choose the right overdraft facility for your business.
Instant Access: Once approved, access your funds immediately whenever you need them.
Eligibility Criteria for Business Overdraft
To qualify for a BigMudra business overdraft facility, you typically need to meet the following eligibility criteria:
Age: 21-65 years (at facility maturity)
Business Age: Minimum 2 years of business operations
Credit Score: Preferably 700 or above
Annual Turnover: ₹50,000 to ₹100+ crore
Banking Relationship: Minimum 12 months with current bank
Eligible entities include MSMEs, sole proprietors, LLPs, private and public limited companies, self-employed individuals, and professionals.
Documents Required
Prepare the following documents for a smooth application process:
| Category | Documents Required |
|---|---|
| Identity & Address |
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| Financial Documents |
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| Business Documents |
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How to Calculate Overdraft Interest
Overdraft interest is calculated daily on the outstanding amount used. The formula is:
- Daily Interest = (Outstanding Amount × Interest Rate × Number of Days) / (365 × 100)
- For example: If you use ₹1,00,000 from your overdraft at 12% annual interest for 30 days:
- Interest = (1,00,000 × 12 × 30) / (365 × 100) = ₹986
Manual calculations can be complex since the outstanding amount changes daily. Use online calculators or speak with our experts to understand your interest costs accurately.
Ready to Get Your Overdraft Facility?
Experience seamless processing with BigMudra. Our experts guide you through verification, ensuring instant access to your credit facility.
Application Process
Click Apply: Click the "Apply" button on this page to start your application
Create Your Account: Create your account with your mobile number and basic details
Select Overdraft: Select overdraft preferences including credit limit and type
Enter Your Details: Enter personal and business information as required
Complete Your KYC: Complete KYC and submit your application with documents
Customer Support 24x7: Our support team will guide you through verification and approval
Charges and Fees
| Particulars | Charges |
|---|---|
| Interest Rate | 10% to 28% p.a. |
| Processing Fees | Up to 2% of the credit limit |
| Annual Maintenance Charges | Up to 0.5% of credit limit |
| Overdue Charges | ₹500 to ₹1000 per instance |
| Limit Enhancement Charges | Up to 1% of additional limit |
| Stamp Duty | As per state law |
Get Started Today
Don't let cash flow issues hold your business back. Apply for BigMudra's flexible overdraft facility and get instant access to funds whenever you need them.
Frequently Asked Questions
What is a business overdraft facility?
At BigMudra, we understand that businesses need flexible access to funds. Our Business Overdraft Facility allows you to withdraw money even when your account balance is zero, up to a pre-approved limit. You pay interest only on the amount you use, making it perfect for managing cash flow and working capital needs.Can I get an overdraft facility without collateral?
Yes! You can get a Business Overdraft Facility without any collateral or security, subject to eligibility criteria and credit assessment.Am I eligible for an overdraft facility?
You are eligible if you're a business owner with at least 2 years of business operations, good credit history, and regular banking transactions. Final approval depends on document verification, financial assessment, and our internal credit policy.How long does it take to get overdraft facility approved?
The overdraft facility can be activated within 3-7 working days from the time of application approval and document verification.How is interest calculated on overdraft?
Interest is calculated daily on the actual amount used from your overdraft limit. You don't pay any interest on unused portions of your credit limit.What is the maximum overdraft limit I can get?
You can currently get an overdraft facility for up to ₹50 lakhs, subject to your business profile, turnover, and eligibility criteria.How long is the overdraft facility valid?
The overdraft facility is typically valid for 12 months and can be renewed based on your repayment history and business performance.
