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How to get a Loan on Current Account?
Posted on Thursday, December 29th, 2022 | By IndusInd Bank
If you are running a business or planning to start a new one, then a current bank account is one of the most essential requirements. A current account is a type of deposit account that offers significantly higher number of transactions in terms of deposits and withdrawals. It’s key objective is to facilitate seamless transactions for businesses. However, one of the most advantageous features of a current account is that account holders can easily avail overdraft facility up to an agreed limit.
Current Account Loan
A current account loan is basically an overdraft loan provided by the bank where a current account holder can withdraw more money than the actual balance in the account. An overdraft facility in current account can be a viable source of funds if you are unable to get a traditional loan. Overdraft feature allows you to withdraw even though the current account balance is zero, and can prove to be extremely beneficial during a sudden or unplanned financial situation.
Current account overdraft facility is an affordable, convenient financial solution for short term working capital need of businesses. With the overdraft facility available through your current account, you can settle the pending payments via a cheque without the worry of cheque dishonour.
How to get a loan on current account?
As mentioned above, borrowing funds through instant overdraft is just like taking a loan from a bank. Some customers are pre-qualified for overdraft facility by the bank whereas some need to get approval. Pre-qualified customers can simply withdraw extra money from their accounts. The account balance becomes negative and the overdraft facility is automatically activated. Customers who need a bank approval to avail overdraft can do so by submitting their request to the bank either by visiting a branch or online.
Interest rate on overdraft
From the time you avail overdraft till the time you repay, banks charge an interest on the amount you borrowed. You can repay money to the lender whenever you want to. Just deposit funds in your bank account and the outstanding balance will reduce automatically, thus reducing the overdraft amount.
Avail a business loan for bigger needs
If your business needs more funds than the overdraft limit, opt for a business loan instead. You can scale up your business with instant, seamless and digital business loans from IndusInd Bank Easy Credit. You can enjoy competitive interest rates, flexible loan repayment tenure and quick processing with minimal paperwork. IndusInd Bank also provides speedy amount disbursals on business loans so that you don’t need to worry about business operations coming to a halt.
For any business, having a current account is very important in order to conduct their day-to-day transactions, efficiently manage cash, simplify payments and collections, and benefit from a wide range of free banking services.
IndusInd Bank current account offers a host of services like dynamic cash deposit limits, higher transaction limits, doorstep banking and auto sweep deposits. There’s more! You can also choose your own account number with the IndusInd Bank My Account My number feature.
So, open a current account digitally with the right banking partner for your business – Click here.
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.
