A bank overdraft is a facility that allows you to withdraw funds beyond your account balance up to a pre-approved limit. It’s a convenient way to manage unexpected expenses or bridge temporary cash flow gaps.
Pre-Approved Limit: The bank sets a maximum limit on the amount you can overdraw.
Interest Charges: Interest is charged on the overdrawn amount.
Repayment Terms: The overdraft facility may have a specific repayment period or may be renewable.
Fees: Some banks may charge additional fees for overdraft facilities.
A bank overdraft is a facility that allows you to withdraw funds beyond your account balance up to a pre-approved limit. It’s a convenient way to manage unexpected expenses or bridge temporary cash flow gaps.
Key Features of a Bank Overdraft:
Pre-Approved Limit: The bank sets a maximum limit on the amount you can overdraw.
Interest Charges: Interest is charged on the overdrawn amount.
Repayment Terms: The overdraft facility may have a specific repayment period or may be renewable.
Fees: Some banks may charge additional fees for overdraft facilities.
Types of Bank Overdrafts:
General Overdraft: A standard overdraft facility that can be used for various purposes.
Special Purpose Overdraft: An overdraft facility designed for specific purposes, such as business operations or agricultural activities.
Benefits of a Bank Overdraft:
Flexibility: Provides flexibility to manage unexpected expenses.
Emergency Funding: Can be helpful in financial emergencies.
Convenience: Allows you to access funds easily.
Risks of Overdraft:
Interest Charges: Overdraft interest rates can be high.
Debt Accumulation: Overusing the overdraft facility can lead to debt accumulation.
Negative Impact on Credit Score: Frequent overdrafts can negatively impact your credit score.
Eligibility Criteria for a Bank Overdraft:
Good Credit Score: A good credit score is essential for obtaining an overdraft facility.
Account Relationship: Having a long-standing relationship with the bank can improve your chances of approval.
Income: Your income level may be considered when assessing your eligibility.
Documents Required for a Bank Overdraft:
Identity Proof: Aadhaar card, passport, driving license, etc.
Address Proof: Aadhaar card, passport, electricity bill, bank statement, etc.
Income Proof: Salary slips, income tax returns, bank statements, etc.
Existing Bank Account: You must have an existing bank account with the lender.
Note: The specific terms and conditions of bank overdrafts can vary depending on the bank and the borrower’s circumstances. It’s advisable to compare offers from different banks and understand the associated costs before availing of an overdraft facility.
Terms & Conditions
Govt fee Rs 1000 extra to be borne by the client
All tax payments and penalties if any to be borne by the client
Stamp paper and notary should be borne by the client
This pricing is applicable only if the LLP is not having any assets and liabilities.
There will be additional charges if there is BANK ACCOUNT STATEMENT transactions having above 100 entries
DINeKYC & DSC needs to be active till the e-filing status of the LLP changes to “UNDER PROCESS OF STRIKE OFF”.
Separate forms to be filed with MCA for updating of Registered Office address/mail id & and the add/remove partners (additional charges applicable).
LLPs must file FORM-3 within 30 days of incorporation. Failure to do so incurs a penalty, which must be paid before filing FORM-24 for closure of LLP with the MCA.
A bank overdraft is a facility that allows you to withdraw funds beyond your account balance up to a pre-approved limit. It’s a convenient way to manage unexpected expenses or bridge temporary cash flow gaps.
Key Features of a Bank Overdraft:
Types of Bank Overdrafts:
Benefits of a Bank Overdraft:
Risks of Overdraft:
Eligibility Criteria for a Bank Overdraft:
Documents Required for a Bank Overdraft:
Note: The specific terms and conditions of bank overdrafts can vary depending on the bank and the borrower’s circumstances. It’s advisable to compare offers from different banks and understand the associated costs before availing of an overdraft facility.