Overdraft or overdraft-like credit facilities are available to qualified clients in India through a number of banks and Non-Banking Financial Companies (NBFCs). Although fees, payback terms, and eligibility requirements differ by lender, interest is typically assessed on the amount used and for the duration it is outstanding.
A financial arrangement known as an overdraft facility permits people and companies to take out more money than their available bank balance, according to a certain maximum. It assists in meeting urgent needs, managing short-term cash flow difficulties, and sustaining business operations without having to apply for a new loan each time money is needed.
These 10 Indian banks and NBFCs are worth taking into account for overdraft services in 2026:
Bajaj Finance
A traditional overdraft facility is not provided by Bajaj Finance. Rather, it provides Flexi Personal Loans with comparable characteristics, like interest on the amount used and multiple withdrawals from an authorised limit.
- It provides Flexi Personal Loans ranging from ₹40,000 to ₹55 lakh.
- Borrowers who meet the requirements may take money out of their approved limit more than once, and they will be charged interest on each withdrawal. Depending on eligibility and other fees, advertised interest rates might range from 10% to 30.5% annually.
To apply for overdraft facility, click on Bajaj Finserv Over Draft
Tata Capital
Tata Capital is an NBFC that provides overdraft and flexi-loan options for both personal and corporate needs. Its working-capital loan programme assists qualified companies in meeting operating costs, managing short-term cash flow needs, and preserving efficient business operations. Subject to the relevant terms and restrictions, borrowers pay interest on the amount used rather than the whole authorised overdraft limit. The other one is the Personal Hybrid Term Loan (Overdraft):
- Loan amount – up to ₹35 lakhs
- Interest rate – Starts from 12.99% p.a.
- Tenure – up to 96 months
To apply for overdraft facility, click on Tata Capital overdraft facility
State Bank of India (SBI)
Customers can access funds without having to prematurely close their fixed deposits thanks to State Bank of India’s (SBI) overdraft option. For qualified deposits, the service is accessible through bank branches and SBI’s online banking and YONO platforms
- OD limit: Up to 90% of the eligible deposit value, subject to applicable conditions.
- Interest rate: 1% above the applicable time deposit rate
- Processing charges:NIL
- Collateral: Eligible SBI time deposit
HDFC Bank
Customers who qualify can access cash through HDFC Bank’s Overdraft Against Fixed Deposit programme without having to prematurely close their fixed deposits.
- OD limit – up to 90% of the eligible fixed deposit value
- Interest rate – 2% p.a. above the applicable fixed deposit rate
- Minimum fixed deposit – ₹25,000
- Minimum tenure – 6 months and 1 day
Federal Bank
The Federal Easy Cash Scheme is an overdraft service provided by Federal Bank that enables qualified clients to obtain money secured by authorised securities and fixed deposits. The facility assists borrowers in meeting short-term financial needs and unforeseen costs without having to sell their investments too soon.
- OD limit – up to 90% of the original deposit value
- Interest rate – Overdrafts against the customer’s own deposit are typically 2% more than the applicable deposit rate.
- Processing fee-NIL
- Collateral – Eligible fixed deposits and other approved securities.
Also read: EPFO PF New Rules 2026: Can You Withdraw 100% of Your PF After 12 Months of Unemployment?
South Indian Bank
To assist individuals, dealers, and enterprises in managing short-term financial needs and cash-flow fluctuations, South Indian Bank provides overdraft capabilities. The programme enables qualified borrowers to take out money up to a predetermined credit limit and pay it back according to the conditions specified.
- Credit limit – Determined by the bank based on eligibility, financial assessment and collateral
- Interest – Generally charged on the amount utilised, according to the sanctioned terms.
- Collateral – May be required, depending on the type of overdraft
Ujjivan Small Finance Bank
Dealer Trade Advance, an unsecured overdraft facility intended for qualified dealers who need short-term capital to maintain their business operations, is one of its main offerings.
- OD limit – ₹3 lakh to ₹2 crore
- Interest rate – 14% to 17% p.a.
- Interest-free period – 29 days for eligible disbursements
- Processing fee – ₹5,000+ applicable GST
HSBC India
Overdraft services are provided by HSBC India through products like the Smart Money Account and Anytime Credit. For qualified salaried clients who want flexible access to money for unforeseen costs or emergencies, Anytime Credit is a personal line of credit. In contrast, qualified clients can access money from their fixed deposits through the Smart Money Account without having to close them too soon.
- OD limit – Up to ₹50 lakh under Anytime Credit, subject to eligibility
- Interest rate – 11.88%-18% p.a. for Anytime Credit
- Processing fee-NIL
Punjab National Bank
Punjab National Bank (PNB) provides small-ticket accounts, working capital OD alternatives, and an online and offline overdraft (OD) facility, mostly against fixed deposits (FD).
- OD Limit – ₹25,000 to ₹50 lakh
- Interest rate – 1% above the applicable fixed deposit interest rate
- Processing charges – NIL
- Collateral – Eligible fixed deposit held in the customer’s name
Axis Bank
Axis Bank offers various overdraft facilities to meet the short-term financial needs of salaried individuals and businesses. One of its most important services is the 24×7 Flexi Credit, which gives eligible salary account holders access to funds up to 5 times their monthly salary. It also offers quick overdraft facilities for business owners and self-employed individuals.
- Salary OD limit – Up to ₹5 lakh under 24×7 Flexi Credit
- Business OD limit – ₹15 lakh to ₹50 lakh under the eligible MSME Quick Overdraft Product
- Interest rates – Begins at 16% p.a. for Flexi Credit; business overdraft rates are determined individually.
- Collateral – not required
Overdraft facilities have become a handy financing alternative for people and enterprises wanting to handle short-term cash-flow shortages without taking out a typical loan. However, finding the correct overdraft facility takes more than merely comparing credit limits. Borrowers should consider interest rates, processing costs, collateral requirements, repayment periods and eligibility criteria before making a selection.