Every business faces fluctuations in cash flow — delayed client payments, sudden expenses, or seasonal slowdowns. In such moments, having instant access to funds without the hassle of reapplying for a loan can be a game-changer.
That’s where a Business Overdraft Loan (OD Loan) comes in.
At Bravima Solution Pvt Ltd, we help entrepreneurs, self-employed professionals, and SMEs secure flexible overdraft facilities from leading NBFCs and banks in India. This guide explains everything about business overdraft loans — from how they work, eligibility, benefits, and comparison of top OD providers to expert tips for approval.
What Is a Business Overdraft Loan?
A Business Overdraft Loan is a revolving credit facility that allows businesses to withdraw funds from their account beyond the actual balance — up to a pre-approved limit. You pay interest only on the amount utilized and only for the days it remains outstanding.
Example:
Suppose your OD limit is ₹10 lakh, and you use ₹4 lakh for 10 days.
You’ll pay interest only on ₹4 lakh for those 10 days — not on the entire ₹10 lakh limit.
This flexibility makes overdraft loans perfect for managing working capital gaps, inventory purchases, vendor payments, or unexpected operational costs.
How Does a Business Overdraft Facility Work?
Here’s a quick breakdown of how OD accounts function:
| Step | Description |
| 1. Apply through Bravima Solution | We match your business profile with top NBFCs and banks that best suit your credit needs. |
| 2. Credit Assessment | Lenders evaluate your financial health using ITR, GST returns, and bank statements. |
| 3. Sanction of OD Limit | A limit (say ₹5–₹25 lakh) is approved based on turnover and credit score. |
| 4. Flexible Withdrawals | You can withdraw any amount up to the limit when required. |
| 5. Pay Interest Only on Usage | Interest applies only to the utilized amount, not the entire limit. |
Overdraft Alert? Get an Instant Overdraft Loan Today!
Why Choose an Overdraft Loan for Your Business?
| Benefit | Explanation |
| Flexibility in Withdrawals | Use funds as needed; no fixed EMI or prepayment requirement. |
| Interest on Utilized Amount Only | You save interest costs compared to term loans. |
| Revolving Credit | Once you repay, funds become available again for reuse. |
| Quick Processing | Especially through NBFCs like Bajaj Finserv or Tata Capital, approval can happen in hours. |
| No Need for Fresh Applications | Continuous access to credit without repeated paperwork. |
Eligibility Criteria for Business Overdraft Loans
While each lender has its own norms, these are the common requirements:
- Minimum business vintage: 1–3 years
- Minimum annual turnover: ₹10 lakh – ₹25 lakh
- Applicant type: Sole proprietors, partnerships, LLPs, or private limited companies
- CIBIL score: 650+ preferred
- Documents: KYC, GST returns, bank statements, ITRs, business proof
At Bravima Solution, we simplify this by helping you prepare your file according to the NBFC’s policy — increasing your approval chances significantly.
Top NBFCs & Banks Offering Business Overdraft Loans in India
Here’s a verified comparison of some of the leading OD loan providers available through Bravima Solution Pvt Ltd.
| Bank / NBFC | Interest Rate (Approx.) | Eligibility | Loan Limit | Best For |
| Bank of Baroda – Smart OD | 10.00% p.a. onwards | GST-registered MSMEs | ₹50,000 – ₹25 lakh | Digital overdraft for small businesses |
| HDFC Bank OD | ~15% – 18% (est.) | For merchants, self-employed | ₹1 lakh – ₹50 lakh | Instant overdraft for traders and professionals |
| Bajaj Finserv (NBFC) | 13% onwards (est.) | Salaried & self-employed | ₹1 lakh – ₹25 lakh | Quick approval, collateral-free |
| Tata Capital (NBFC) | 11.5% onwards (est.) | SMEs / business owners | ₹1 lakh – ₹30 lakh | Flexible repayment, long tenure |
| Fullerton India (NBFC) | 12% onwards (est.) | Salaried / self-employed | ₹50,000 – ₹25 lakh | Easy documentation, moderate rates |
(Rates updated from verified public data and market sources, as of October 2025.)
Emergency Funds Needed? Grab an Overdraft Loan Fast!
Key Features of Business Overdraft Loans
- Credit Limit Based on Business Profile – Higher turnover and strong banking behaviour can help you qualify for a larger OD limit.
- Secured or Unsecured Options – NBFCs like Bajaj Finserv and Tata Capital often offer unsecured ODs, while banks may require collateral.
- Renewable Facility – Most overdrafts are sanctioned for 12 months and can be renewed annually.
- Digital Access – Many NBFCs allow online withdrawal, repayment, and limit tracking through apps or dashboards.
- Tax Benefits – Interest paid on business overdrafts can be claimed as a business expense.
When Should You Opt for a Business Overdraft Loan?
You should consider a business OD facility if:
- Your clients often delay payments beyond 30–45 days.
- You face periodic working capital shortages.
- You need instant liquidity without selling assets.
- You want a safety buffer during low-revenue periods.
- You’re looking for credit flexibility without long approval cycles.
Many SMEs use overdraft loans as a financial cushion — helping them focus on growth instead of daily cash flow management.
Business Overdraft Loan vs Business Term Loan
| Feature | Business Overdraft Loan | Business Term Loan |
| Repayment | Flexible, pay as you use | Fixed EMIs |
| Interest | Only on used amount | On full loan amount |
| Purpose | Working capital, short-term needs | Asset purchase, expansion |
| Tenure | 12 months (renewable) | 12–60 months |
| Collateral | Optional (NBFCs offer unsecured) | Often required |
| Best For | Cash flow management | Long-term investments |
How to Apply for a Business Overdraft Loan via Bravima Solution
We make the process smooth and transparent:
- Fill Out a Simple Form – Share your business details and financial profile.
- Get Matched with Top Lenders – We compare NBFCs and banks offering the most suitable overdraft terms.
- Submit Documents Digitally – KYC, business proof, bank statements, and GST returns.
- Instant Approval – Many partners like Bajaj Finserv provide instant credit decisions.
- Funds on Tap – Access your sanctioned limit anytime, anywhere.
👉 Apply now through Bravima Solution Pvt Ltd and experience fast, reliable funding backed by India’s trusted NBFC network.
Best Working Capital Loans Loan offers are just a click away
Tips to Get Your Business Overdraft Loan Approved Quickly
- Maintain a clean banking record with regular deposits.
- File GST and ITRs on time to build financial credibility.
- Keep your CIBIL score above 700.
- Avoid multiple simultaneous loan applications.
- Ensure business registration and compliance documents are updated.
These small steps can drastically improve your approval chances and help you get a higher OD limit.
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