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Key Features of Bandhan Bank Overdraft Facility

  • Loan Against Term Deposit: Access up to 90% of your fixed deposit value without breaking the FD, which continues to earn interest.
  • Competitive Interest Rates: Interest rates are typically just 1.50% to 2.00% above your FD rate, making it cheaper than unsecured loans.
  • Flexible Repayment: No fixed EMIs - repay as per your convenience with interest charged only on the amount utilized.
  • Zero Processing Fees: Bandhan Bank charges no processing fees for this facility, reducing your borrowing costs.
  • Quick Approval: Fast processing with minimal documentation since the loan is secured against your FD.
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    • No Prepayment Penalties: Repay your overdraft anytime without any foreclosure charges.
    • Flexible Usage: Use funds for any personal need - medical emergencies, education, travel, or debt consolidation.
    • Accessible to All: Available to individuals, joint account holders, and even firms/trusts with FDs at Bandhan Bank.
    • No Credit Score Requirement: Since secured against FD, no minimum credit score is needed.
    • Revolving Credit: Withdraw, repay and reuse funds within your limit during the tenure.
    • Senior Citizen Benefits: Special terms available for senior citizen FD holders.
    • Transparent Terms: Clear interest calculation with no hidden charges.
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Benefits of Bandhan Bank Overdraft Facility

  • Preserves Long-Term Savings: Your FD continues earning interest while you access up to 90% of its value as credit.
  • Cost-Effective Borrowing: Interest rates are much lower than personal loans or credit cards, saving you money.
  • No Processing Fees: Zero upfront costs compared to personal loans that charge 1-3% processing fees.
  • Flexible Access: Withdraw only what you need, when you need it, and pay interest only on the utilized amount.
    • No Fixed EMIs: Repay as per your cash flow without mandatory monthly installments.This is particularly beneficial for individuals with irregular income, such as freelancers, business owners, or those with seasonal cash flows.
    • No Credit Score Barrier: Available even if you have low or no credit score since secured by FD.
    • Quick Disbursal: Funds available within 1-3 working days after approval.Funds can be available within hours or a day, ideal for emergencies like medical expenses or urgent repairs.
    • Multiple Withdrawals: Use your limit, repay, and reuse as needed during the tenure.
    • Senior Citizen Benefits: Special terms and higher FD rates translate to better OD terms.
    • Business Use: Firms/trusts can use this for business cash flow needs.
    • Emergency Funding: Immediate liquidity for unexpected expenses without FD breakage.
    • Transparent Terms: Clear interest calculation with no hidden charges.
    • Doorstep Service: Existing customers may get document pickup at their location.
    • Safe Borrowing: No risk to other assets since secured only against your FD.
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How to Apply for Overdraft Facility

  • 1. Check Eligibility
      • Must have an active FD with Bandhan Bank (individual, joint, or firm/trust account)
      • For joint FDs, primary holder should be a senior citizen (60+ years) in some cases
      • No minimum credit score required
  • 2. Gather Required Documents
    • Fixed Deposit receipt or account statement
    • Identity Proof: Aadhaar card, PAN card, passport, voter ID, or driving license
    • Address Proof: Utility bill, rental agreement, or passport
    • Loan application form with photograph
    • Additional documents for firms/trusts if applicable
  • 3. Choose Application Method
    • Online: Via Bandhan Bank website with digital documents
    • Branch Visit: Submit documents at nearest branch
    • Doorstep Service: Existing customers may get document pickup
  • 4. Facility Details
    • Loan Amount: Up to 90% of FD value
    • Interest Rate: FD rate + 1.50% to 2.00%
    • Tenure: Up to 3-5 years (aligned with FD maturity)
    • Processing Fees: Nil
  • 5. Post-Application Steps
    • Document verification (1-3 working days)
    • Approval and limit setup in your account
    • Start using funds via online banking, cheques or branch

Eligibility Criteria for Overdraft Facility

  • FD Requirements:
    • Must have an active fixed deposit with Bandhan Bank
    • FD can be in individual, joint or non-individual (firm/trust) name
  • Applicant Categories:
    • Individuals: Any FD holder including salaried, self-employed or retirees
    • Senior Citizens: Special terms available for FD holders aged 60+
    • Joint Holders: All account holders must consent to OD facility
    • Non-Individuals: Firms, companies, trusts with FDs in their name
  • FD Value and Tenure:
    • No minimum FD amount specified (OD limit up to 90% of FD value)
    • FD should have sufficient tenure remaining (typically 3-5 years)
  • Credit Requirements:
    • No minimum credit score required
    • No income proof needed for individuals
  • Residential Status:
    • Must be resident of India
    • NRIs may be eligible if they hold FDs with Bandhan Bank
  • Documentation:
    • Basic KYC documents required
    • Additional business documents for firms/trusts
  • Minimum Age:
    • Applicant should be at least 18 years of age
    • Minors not eligible unless represented by guardian for FD
  • Account Standing:
    • FD account must be in good standing with no lien or freeze
    • No existing OD defaults with the bank
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Documents Required for Overdraft Facility

  • Fixed Deposit Proof:
    - FD Receipt or Account Statement
  • Identity Proof (any one):
    - Aadhaar Card
    - PAN Card
    - Passport
    - Voter ID
    - Driving License
  • Address Proof (any one):
    - Aadhaar Card
    - Utility bill (not older than 3 months)
    - Passport
    - Rental Agreement
  • Application Form:
    - Duly filled loan application form
    - Passport-sized photograph
  • For Non-Individuals (firms/trusts):
    - Partnership deed or registration certificate
    - Authorization letter from entity
    - KYC of authorized signatories

Key Factors for Overdraft Facility

  • FD Value:
    - OD limit is up to 90% of FD value
    - Higher FD = Higher OD limit
  • FD Tenure:
    - OD tenure matches FD maturity (3-5 years)
    - Longer FD tenure = Longer OD availability
  • Interest Rate:
    - FD rate + 1.50% to 2.00%
    - Senior citizen FD rates may offer better terms
  • Usage Flexibility:
    - No restrictions on fund usage
    - Interest charged only on amount utilized
  • Repayment:
    - No fixed EMIs - repay as per convenience
    - No prepayment penalties
  • Documentation:
    - Simple documentation for individuals
    - Additional docs for firms/trusts
  • Credit Score Impact:
    - Regular repayment helps maintain good credit score
    - Missed payments may affect credit history

Frequently Asked Questions (FAQs)

What is the maximum OD limit I can get?
Up to 90% of your FD value. For example, an FD worth ₹10 lakh allows an OD limit of ₹9 lakh.
What are the interest rates for the OD facility?
The interest rate is your FD rate plus 1.50% to 2.00%. For example, if your FD earns 7%, the OD rate would be 8.50% to 9.00%.
Who is eligible for the OD facility?
Any FD holder with Bandhan Bank - individuals, joint account holders, or non-individuals like firms/trusts. No minimum credit score is required.
What is the tenure of the OD facility?
The OD tenure matches your FD's remaining tenure, typically 3 to 5 years. The FD must remain active during the OD period.
Are there any prepayment charges?
No, Bandhan Bank does not charge any prepayment or foreclosure penalties for the OD facility.
What are the processing fees?
Zero processing fees for the OD facility against Term Deposit.
What documents are required?
FD receipt, identity proof (Aadhaar/PAN/passport), address proof, application form with photo. Firms/trusts need additional business documents.
Can I apply online?
Yes, through Bandhan Bank's website or mobile app. You can also visit a branch or call customer care at 1800-258-8181.
How long does approval take?
Typically 1-3 working days after document submission. Existing customers may get faster approval.
Can NRIs apply for this facility?
NRIs may be eligible if they hold FDs with Bandhan Bank, subject to specific terms. Contact the bank for details.
What can I use the OD funds for?
Any personal or business need - medical emergencies, education, travel, home renovation, or debt consolidation.
Is a good credit score mandatory?
No credit score is required since the OD is secured against your FD.
What happens if I don't repay the OD?
The bank can adjust the outstanding amount from your FD proceeds at maturity.
Can I increase my OD limit?
Yes, by increasing your FD value. The OD limit is always up to 90% of your FD value.

Bandhan Bank Loan Products

  • Personal Loan (Unsecured)
  • Loan/Overdraft Against Term Deposit
  • Loan Against Property
  • Two-Wheeler Loan
  • Home Loan
  • Gold Loan
  • Business Loan
  • Agriculture Loan