Personal Loan Overdraft Facility: What It Is & How It Works

Personal Loan Overdraft Facility image by Bravima Team

In today’s fast-paced financial world, flexibility in borrowing is as important as loan approval speed. That’s where the Personal Loan Overdraft Facility steps in. It combines the flexibility of an overdraft with the ease of a personal loan, offering you a credit line you can use anytime, without the pressure of fixed EMIs.

Let’s understand how this works and why it’s becoming increasingly popular with both salaried professionals and self-employed individuals.

What Is a Personal Loan Overdraft Facility?

A personal loan overdraft is a pre-approved credit limit offered by a bank or NBFC. You can withdraw money as needed, and interest is charged only on the amount utilized, not the entire sanctioned limit.

Key Features:

No fixed EMI unless you use the funds
Interest-only EMI options
Reusable credit – withdraw and repay multiple times
No prepayment penalty on unused amount

It’s ideal for people who need flexible access to funds – such as business owners, freelancers, salaried employees with unpredictable expenses, or anyone managing sudden cash requirements.

How Is It Different from a Regular Personal Loan?

Feature	Personal Loan	Overdraft Facility
Disbursed Amount	Full amount upfront	Limit is set, used as needed
EMI	Fixed EMI on total amount	EMI only on used amount
Prepayment Charges	Applicable in many cases	Usually nil
Flexibility	Low	High
Ideal For	One-time funding	Ongoing, unpredictable needs

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Top NBFCs Offering Overdraft Facility in India

Bajaj Finserv Flexi Personal Loan

Offers a Flexi Loan facility where you borrow and repay multiple times
Pay interest-only EMIs
No charges on part-prepayment
Ideal for salaried and self-employed

Tata Capital Flexi Loan

Revolving credit line for personal use
Borrow in parts and repay early without penalties
Flexible tenure and low documentation

Bravima Solution partners with both these NBFCs to offer you the best overdraft options with fast approval and minimal paperwork.

Who Should Consider a Personal Loan Overdraft Facility?

Salaried professionals with variable expenses (travel, education, health)
Freelancers or consultants with uneven income flow
Small business owners needing working capital
Individuals with unpredictable or short-term funding needs

Eligibility Criteria

While eligibility varies by lender, common requirements include:

Age: 21 to 60 years
Minimum monthly income: ₹25,000–₹35,000
Good CIBIL score (650+)
Minimum job/business stability of 1–2 years

Bravima can help you check your eligibility across multiple NBFCs instantly.

Documents Required

PAN Card
Aadhaar Card / Voter ID
Salary slips / Bank statements
Address proof
Business proof (for self-employed)

Some NBFCs also offer no-doc overdraft facilities for pre-approved borrowers.

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Benefits of a Personal Loan Overdraft Facility

Pay interest only on what you use
No need to reapply for a loan each time
Easy online access to funds
Flexible repayments
Prepayment without penalty
Boosts credit flexibility without a full loan burden

How to Apply for an Overdraft Facility via Bravima Solution

At Bravima, we help you get personal loan overdraft facilities from top NBFCs and digital lenders across India. Here’s how:

Share basic details (income, CIBIL, employer, location)
We match you with eligible NBFCs like Bajaj Finserv, Tata Capital
Submit KYC and income documents
Get instant approval and set your credit limit
Withdraw money as per your need

Use Cases for Personal Loan Overdraft

Emergency medical expenses
Destination wedding
Funding a side business
Vacation travel
Home renovation
School or tuition fees

FAQs on Overdraft Facility on Personal Loans

Q1. Will my CIBIL score be affected by using the overdraft?
Only if you miss repayments. Proper usage can improve your credit profile.

Q2. Is interest charged monthly or daily?
Interest is calculated daily on the amount used, but billed monthly.

Q3. What is the difference between OD and credit card?
OD offers lower interest rates and no compounding interest unlike credit cards.

Q4. Can I close the overdraft anytime?
Yes, you can repay the full amount and request closure at any time.

Conclusion: Smart, Flexible Borrowing at Your Fingertips

A personal loan overdraft is ideal for individuals who want credit flexibility without paying interest on the full loan amount. Whether it’s for emergencies, big-ticket spending, or monthly gaps, it gives you financial breathing space.

👉 Ready to apply?
Let Bravima Solution Pvt Ltd match you with the right overdraft facility today – quick approvals, low interest, and full transparency.