Overdraft Personal Loan

Interest Rate for Personal Loan Overdraft Comparison

The interest rate for personal loan overdrafts varies depending on the lender, the loan amount, the credit profile of the borrower, and other factors. In general, the interest rate for a personal loan overdraft is higher than the interest rate for a regular personal loan, as it offers more flexibility and convenience to the borrower. However, the borrower only pays interest on the amount they use, not the entire limit, which can help them save on interest costs.

Here are the leading banks in India which offer Flexi Personal Loans:

Variable vs. Fixed Rates

Let's examine the differences between variable rates and fixed rates regarding overdraft loans:

Variable Interest Rate	Fixed Interest Rate
The interest rate changes over time based on an underlying benchmark or index.	The interest rate stays the same throughout the loan term.
The initial interest rate is usually lower than the fixed rate, but it can increase or decrease later.	The interest rate is usually higher than the variable rate, but it is predictable and stable.
The monthly payments can vary depending on the interest rate fluctuations.	The monthly payments are fixed and easy to budget for as they remain unchanged.
The total cost of borrowing can be lower or higher depending on the market conditions.	The total cost of borrowing is known in advance and does not change.
Suitable for borrowers who can afford to take the risk or who plan to pay off the loan quickly.	Suitable for borrowers who prefer certainty and security or who have a long loan term.

How Does the Overdraft Facility Loan Work?

The following outline describes the typical procedures for how an overdraft facility loan works:

• You can apply for an overdraft facility loan from a lender that suits you best, and get approved for a certain limit based on your eligibility.
• You can withdraw money from your loan account anytime you need, up to the sanctioned limit, using online banking, mobile app, cheque, or ATM.
• You pay interest only on the amount you withdraw, not on the entire limit, at either a fixed or variable rate, depending on your chosen lender. The interest is calculated daily and is billed monthly to your loan account.
• You can repay the loan amount in full or in part, whenever you have surplus funds, without any prepayment charges. You can also withdraw the repaid amount again, as long as it is within the limit and the loan tenure.

Apply for Overdraft Facility

You can initiate your overdraft loan application through Pluto Money's official website. Alternatively, you can contact our loan specialist by dialling 1800 208 3344, who will be happy to guide you until you secure the necessary funds. Our team of experts strives to provide you with a quick solution and help you make the entire process smoother.

Let's take a look at a list of features you can expect from an instant personal loan of ₹10 Lakhs:

• Multi-purpose credit option
• Collateral-free finance
• Competitive interest rate
• Flexible repayment term
• Online application process
• Quick approval and disbursal

Key Points Lenders Consider While Offering Personal Loans of Rs 10 Lakh

Here are some of the major factors you may keep your mind while applying for ₹10 Lakh personal loan online:

• Maintain a good credit score
• Reduce your debt-to-income ratio
• Present all your income sources
• Affix co-applicant
• Avoid multiple loan applications