Have you ever heard the name of salary overdraft, but do you know what it is? Also know how you can withdraw more than the money deposited in the bank account with this.
It is the case with most of the people that they get salary on 1st day and till the completion of the month the work gets done with that salary. But, sometimes extra expenses like medical or any event etc. coming in the middle of the month spoil the entire budget. In such a situation, you have to focus on your savings, but breaking FD for small extra expenses, withdrawing LIC money etc. is not the right option. In this situation, salary overdraft can be a good option for you, which helps in meeting your sudden expenses.
It is the case with most of the people that they get salary on 1st day and till the completion of the month the work gets done with that salary. But, sometimes extra expenses like medical or any event etc. coming in the middle of the month spoil the entire budget. In such a situation, you have to focus on your savings, but breaking FD for small extra expenses, withdrawing LIC money etc. is not the right option. In this situation, salary overdraft can be a good option for you, which helps in meeting your sudden expenses.
Actually, if you do a job, then the bank gives the facility of salary overdraft to its customers. Under this, you can withdraw from the bank as much or more than the amount in the account. What happens in this is that you can take money from the bank up to three times more than your salary. That is, even if there is no balance in your account, but you can withdraw more than this.
What is Salary Overdraft- This is a type of loan and it is given after looking at your records. You also have to pay interest on its repayment. Its interest is cheaper than credit cards and interest of one to three per cent can be charged every month. That is, the amount of money you withdraw from the salary limit.
Withdrawal is easy- This overdraft is pre-approved and has a limit. You can withdraw money up to the limit at any time within minutes. However, every bank has its own rules.
Some banks offer overdraft facility up to 2-3 times your monthly salary. At the same time, some banks provide this facility only up to 80-90 percent of a month’s salary.
