How a Business Overdraft Works
A business overdraft is a revolving facility linked to lender terms and a sanctioned limit. Depending on the product, interest may be charged on the utilised amount rather than the entire sanctioned limit.
Who May Be Eligible?
Eligibility can depend on business vintage, turnover, banking conduct, financial performance, bureau profile, existing liabilities and security requirements. Different lenders use different assessment models.
Documents and Review
KYC, business proof, bank statements, GST/ITR records and financial statements may be required. The final limit, rate, security, renewal and charges are decided by the lender.