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What is overdraft limit in HDFC Bank?

Author

Matthew Cannon

Updated on March 06, 2026

What is overdraft limit in HDFC Bank?

Most banks have the provision of advancing short-term loans to the salary account holders as overdraft. For example, HDFC Bank allows minimum overdraft limit of Rs 25,000 and maximum Rs 1 lakh in salary accounts, while the maximum salary overdraft limit for both SBI and ICICI Bank is Rs 4 lakh.

Similarly, it is asked, what is overdraft facility in HDFC Bank?

Get up to three times your salary as a pay-as-you-use overdraft loan from HDFC Bank. Enjoy competitive interest rates, a transparent and simple documentation process and quick disbursals. Avail of up to ₹ 1.25 lakh as overdraft and pay interest only for the amount and duration you use the funds.

Subsequently, question is, how can I get HDFC salary overdraft? Just go through the online portal of HDFC bank and from there you can fill an easy form and get an overdraft under your name. It is as simple as creating any online account. If you have a corporate salary HDFC bank account, then you can apply online for an OD. The online process is also very easy to understand.

Similarly, how can I avail overdraft facility in HDFC Bank?

HDFC Overdraft Loans against Securities

  1. By pledging 80% value of the securities, you can avail a minimum loan amount of ₹2 lakhs.
  2. You can only use the overdraft loan for fulfilling your personal needs.
  3. Interest is charged only on the amount withdrawn for use.

What is overdraft limit?

An overdraft limit or overdraft protection is the maximum amount that banks allow its consumers to withdraw in their accounts aside from their existing debt. For example, an organization has a checking account balance of $5,000 with an overdraft limit of $500.

How is overdraft interest calculated?

Interest owed will be calculated by: Multiplying the daily ending balance on your Overdraft Line of Credit by the daily periodic rate. Daily periodic rate is calculated by dividing the current APR by 365 – or 366 in a leap year.

Can I withdraw money from overdraft?

Your financial circumstances.
If you go beyond your overdraft limit, some banks let you continue to spend money. Your bank can also withdraw a free overdraft, which means you would have to pay it back before the date they set; otherwise you have to pay fees.

How do I cancel my overdraft?

To cancel, your account needs to be in credit. Sign into Online Banking, select the 'More actions' button on your current account, then choose the 'Manage overdraft' button (found in the 'Overdraft' dropdown menu). Click 'Cancel Arranged Overdraft' and follow the on-screen instructions.

Can I take loan on FD?

You can avail loan against your Fixed Deposit (FD) if your credit score is low, you do not meet the income eligibility criteria, or if you have no other assets to pledge for a secured loan. The interest rate on such loans range between 1% and 2% above the FD rate and can be repaid in up to 60 months.

What is overdraft interest rate?

Overdraft Interest Rate
In an overdraft facility, the interest rate is charged only on the amount of cash overdrawn, as opposed to a loan where the interest is calculated on the sanctioned amount regardless of the usage.

What is overdraft facility in FD?

What is an Overdraft Facility? Loan against FD is given by banks as an overdraft facility to customers. Overdraft or OD limit backed by fixed deposit is lower than the deposit amount whereas the interest charged is higher than the applicable FD card rate.

How do I get an overdraft facility?

Banks offer overdraft against your salary too. You can get an overdraft limit up to 2-3 times of your salary but that may vary from bank to bank. To avail such an overdraft you need to have a salary account with the said bank. Such facility is also called a short-term loan facility.

What is clean overdraft?

Clean overdraft. Clean overdrafts, on the other hand, imply that there is no security involved. Much like unsecured loans, the financial institution involved relies on the personal financial security of the consumer.

Which bank provides overdraft facility?

Best Overdraft Facility Accounts for Salaried
Bank NameName of Overdraft Facility
State Bank of India (SBI)SBI Maxgain Xpress Credit Personal Loan
HDFCSmartdraft (Only for those maintaining salary account with HDFC)
ICICI BankICICI Bank Home Overdraft Salary Overdraft (Only for those maintaining salary account with ICICI)

What is overdraft in banking?

An overdraft occurs when money is withdrawn from a bank account and the available balance goes below zero. If there is a prior agreement with the account provider for an overdraft, and the amount overdrawn is within the authorized overdraft limit, then interest is normally charged at the agreed rate.

How does overdraft work on FD?

Banks offer overdraft facility against bank fixed deposit. This enables borrowers to have access to liquidity. The borrower can use funds for a short period of time and repay the money much before the last date. This way the borrower pays interest only for the time he/she has availed cash from the bank.

How can I check my overdraft limit in SBI?

Under SBI's overdraft facility, customers holding fixed deposit (FD) in a single name can avail up to 90 per cent of the fixed deposit (FD) amount as an overdraft to meet emergency and other needs. The overdraft is created instantly online via SBI YONO without the need to visit the branch, said SBI on its portal.

Can I apply for overdraft online?

You may be able to arrange an overdraft or increase an existing one in Online Banking (if you're registered), over the phone or in branch. To do this online, log in and select the 'Manage accounts' menu. You'll need to be aged 18 or over to apply for a personal overdraft, and hold an eligible Barclays account.

What is loan against fixed deposit?

Loan against Fixed Deposit is a secured loan, where you can pledge your FD as collateral, in return for the loan amount. Bajaj Finserv offers easy Loan against Fixed Deposits at lower interest rates, with quick processing, flexible repayment options and minimal documentation.

How can I close my SBI overdraft?

To close a loan account:
  1. Click Requests > Closure of Loan A/C. A Closure of Loan A/C page appears.
  2. Select the loan account you wish to close.
  3. Select the transaction account which will be debited to close the loan. Figure 1 shows sample settings.
  4. Click [Submit].

How do banks calculate overdraft limits?

The banks assess the financial health of the borrowing company to determine an overdraft limit. It considers ratios that help to know the efficiency of the company such as the average number of days receivables outstanding, average number of days payables outstanding, inventory turnover ratio etc.

What is drop line limit?

Dropline overdraft limit is a facility granted to you where you can overdraw your current account up to an agreed limit. Overdraft is an efficient form of borrowing as you pay interest only for the time you use the money. It gives you flexibility. Dropline overdraft comes with an advantage over a simple overdraft.

How does an overdraft work?

An overdraft will allow you to borrow money through your current account. Usually there's a charge. You might request one from your bank or your account might automatically offer you an overdraft with your agreement. You're using money that's being loaned to you from your bank.

What is salary overdraft?

Salary overdraft is an overdraft facility extended against salary account only to some selected salary account-holders. The facility enables salary account holders to withdraw or issue cheques for an amount in excess of what is maintained in their salary account.

How do you use an overdraft account?

It almost works like an approved loan. As and when you want, you can keep withdrawing money from this overdraft account. You have to pay interest on the money borrowed for the time you have availed it. You can keep borrowing and repaying your money as long as the bank is willing to offer such overdraft facility to you.

What is cash credit?

Cash credit is a facility to withdraw money from a current bank account without having credit balance but limited to the extent of borrowing limit which is fixed by the commercial bank. This is a very common facility by banks. It is one of the important short term sources of finance for a business.

How can I apply for overdraft in SBI?

SBI's Overdraft against Fixed Deposit facility allows you to get money, through instantly without visiting your branch. Avail of an overdraft of 90% of the FD value in case of STDR/e-STDR and 75% of the FD value in case of TDR/e-TDR to meet your needs during times of emergency.

Is overdraft a loan?

An overdraft is a variable amount of borrowing agreed with your bank up to a set limit. A loan is a fixed amount of borrowing over a set term with regular repayments. Overdrafts allow you to borrow money as and when you need it up to a limit agreed between you and the bank.

What is overdraft with example?

The definition of an overdraft is taking out more money than is in your account, or a draft of air that moves over a fire. An example of an overdraft is to write a check for $40 when you only have $20 in your account. An example of an overdraft is the air that passes over the fuel in a furnace.

What is difference between cash credit and overdraft?

Cash credit is provided against the pledge or the hypothecation of goods. Overdraft is allowed for or provided to the current account holders of the bank. A new bank account is created for sanctioning cash credit. Cash credit is granted to a borrower to a certain'-limit based on the security and need of the customer.

What is an advantage of an overdraft?

Share:
Overdrafts
AdvantagesFlexibility – can change the amount borrowed within limits Interest is only paid on amounts borrowed
DisadvantagesCannot be used for large borrowing Rates of interest higher than loans Bank can change limit at any time or ask for money to be paid back sooner than expected

What is OD amount?

OD account stands for Overdraft account. It is a type of account in which you can withdraw amount even if there is no fund in your account. The bank sanctions a specific limit and your account can go in negative up to that limit. You have to pay interest only on the amount taken as loan.

Why do banks allow overdraft?

The overdraft allows the account holder to continue withdrawing money even when the account has no funds in it or has insufficient funds to cover the amount of the withdrawal. Basically, an overdraft means that the bank allows customers to borrow a set amount of money.

Is bank overdraft a debit or credit?

The trial balance
CategoryDebitCredit
AssetProperty
AssetStock
AssetCash in the bank
LiabilityOverdraft

What happens if I can't pay my overdraft?

If you go over your arranged overdraft limit, your bank will report this to your credit file. A prolonged period of being in an unarranged overdraft could lead to the bank defaulting your account, which will be recorded on your file for six years.

Is an overdraft better than a credit card?

Generally, though, credit cards work better for planned or predictable expenses that you intend to pay off over time. Overdrafts work best in emergency situations, saving you the embarrassment and hassle of a check being rejected for insufficient funds.

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