Bank Overdraft Facility: Sometimes you might urgently need money, but your bank account could be empty.
This can lead to many problems. So, many people take loans when they don’t have enough money.
But did you know that some banks offer a solution called an overdraft facility?
An overdraft facility is when the bank lets you take out money even if your account has no balance.
When you open a bank account, it’s a good idea to ask if they offer this service.
People with Jan Dhan accounts can usually get an overdraft of at least Rs 10,000.
What is an overdraft?
An overdraft is like a loan from the bank. The special thing about it is that you don’t have to go to the bank or fill out forms to get it.
You can use it right away, even at an ATM. But the amount you can take out depends on the bank. Also, there are some big differences between a loan and an overdraft.
For example, with a loan, interest is calculated monthly, but with an overdraft, it’s calculated daily. And overdrafts usually have higher interest rates.
Who can benefit from this?
If you’ve managed your Basic Savings Account well for at least six months, you can usually get an overdraft of up to Rs 10,000.
Your account needs to be linked to your Aadhaar number. This overdraft facility is also available for Jan Dhan accounts. You need to be between 18 and 65 years old to apply.
