About Overdraft Facility
Loanpao’s Overdraft Facility in Delhi, India, provides businesses with a flexible credit line linked to their bank account, allowing withdrawals beyond the available balance up to an approved limit. Interest is charged only on the overdrawn amount, making it an ideal solution for managing cash flow fluctuations and short-term financial needs.
Why Choose Loanpao?
- Overdraft limits up to ₹1 Crore
- Competitive interest rates starting at 12% p.a.
- Flexible repayment with no fixed EMI
- Quick approval within 2–5 days
- Minimal documentation for fast processing
- Interest charged only on utilized amount
- Suitable for SMEs, startups, and large businesses
- 24/7 access to funds via linked bank account
Eligibility Criteria
| Criteria | Requirement |
|---|---|
| Applicant Type | Businesses or self-employed professionals |
| Age | 21–65 years (business owner) |
| Business Vintage | Minimum 3 years |
| Annual Turnover | Minimum ₹20 Lakh |
| Credit Score | 700 or above |
Documents Required
- KYC: Aadhaar, PAN, or business registration certificate
- Business Proof: GST certificate or Udyam registration
- Financials: ITR and bank statements (last 12 months)
- Bank Account Details: Linked account statement
- Collateral Documents: Property or asset papers (if required)
Facility Details
| Parameter | Details |
|---|---|
| Limit | ₹5 Lakh to ₹1 Crore |
| Interest Rate | 12%–20% p.a. (on utilized amount) |
| Tenure | Renewable annually |
| Processing Fee | 0.5%–1.5% of limit |
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How to Apply
- Submit an online application via Loanpao with business details.
- Provide KYC, financial documents, and bank account details.
- Undergo credit assessment and limit evaluation.
- Receive approval and overdraft activation within 2–5 days.
- Access funds anytime via your linked bank account.
Frequently Asked Questions
An Overdraft Facility allows businesses to withdraw funds beyond their bank account balance up to an approved limit, with interest charged only on the utilized amount.
Businesses or self-employed professionals with 3+ years of operations, ₹20 Lakh+ annual turnover, and a credit score of 700+ are eligible.
Interest is calculated daily on the overdrawn amount and charged monthly, based on the annual rate (12%–20%).
Collateral may be required for higher limits, such as property or assets, but smaller limits can be unsecured.
Approval typically takes 2–5 days after document submission and verification.
Startups with 3+ years of operations and strong financials can apply.
No interest is charged if the overdraft is not utilized, though a small annual maintenance fee may apply.
Yes, you can request a limit increase after 6–12 months, subject to credit review.
Overdrawing beyond the approved limit may incur penalties or higher interest rates. Contact your lender immediately.
The facility is typically renewed annually, subject to performance review and updated financials.