Diwali 2021: If you also want to shop fiercely in the festive season and there is less balance in the bank, then there is no need to panic now. Because now you can withdraw from the bank as much or more than the amount in the account.
The festive season is going on. People shop fiercely in this season. In the midst of rising inflation, many times the budget of the people gets spoiled due to purchases. In such a situation, you have to manage your savings. But, breaking FD just for shopping for a festival, withdrawing LIC money is not a matter of profit. In such a situation, you have a great option, which will also make your purchase in a big way and you will not have to break the savings either.
Salary overdraft is a great option
Salary overdraft can be a good option for you in the festive season. If you do a job, then know that the bank gives the facility of salary overdraft to its customers. Under this facility, you can withdraw from the bank as much or more than the amount in the account. In this, 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 money than this.
What is salary overdraft
Salary overdraft is a loan given by the bank, which is given after looking at your records. Just as you have to pay interest on repaying the loan, in the same way you have to pay interest on repaying it. But, its interest is cheaper than credit cards and interest of one to three per cent can be charged every month.
Benefits of overdraft facility
Even if a person does not have money in his bank account, he is allowed to withdraw money up to a limit. You can get this money after keeping the house, FD or insurance policy as collateral. Not only this, now you can also take advantage of overdraft facility through equity. There is no interest-free period on this. Interest and fees start accruing from the day you withdraw the money for the overdraft facility.
Withdrawing money is also easy
Let us tell you that this overdraft is pre-approved and its limit is fixed. You can withdraw money up to this limit at any time within minutes. However, every bank has its own different rules. For the overdraft facility, you have to pay an interest of 1 to 3 percent every month. That is, you will have to pay an interest of 12 to 30 percent annually on this loan.
