To fulfill many of their dreams or in emergency situations, many people have to resort to loans. In such a situation, to meet the financial needs, many financial products are available in the market, with the help of which you can easily take a loan.
Apart from personal loans, there are many options available in the market to meet your personal needs. Many users are not aware of these options. Today we will tell you about some financial products like overdraft facilities, flexi loans, and personal loans. You can fulfill your needs by selecting any one of these good options.
What is an overdraft facility?
If you do not have money in your account but you need money to meet your financial needs, then you can use Overdraft Facility. In this, you can withdraw money from your account even when there is 0 balance in your account.
The bank sets a limit on overdraft facility. Now you can withdraw money up to that limit. The bank charges interest according to the amount of money you withdraw. The specialty of the overdraft facility is that the customer can repay this amount whenever he wants. This means that there is no period for depositing the amount.
The limit of the overdraft facility is already decided by the bank. The customer can withdraw money only as per the pre-approved overdraft limit. This facility is a credit facility linked to a bank account.
What is a Dropline Overdraft Facility
Dropline Overdraft Facility is also a type of overdraft facility. In this, your credit limit reduces with time. There comes a time when this limit becomes zero.
Understand it like this, if your bank gives a limit of Rs 6 lakh in overdraft facility and according to the dropline overdraft facility, the tenure is of 3 years. In such a situation, you can withdraw Rs 6 lakh once within a year or multiple times before the end of the year. If you do not withdraw Rs 6 lakh in a year, then after one year in the Dropline Overdraft Facility plan, the credit limit will be reduced to Rs 4 lakh.
Similarly, in the second year, it will become Rs 2 lakh and in the third year, it will become Rs 0. This means that the overdraft facility will also become zero in the third year. Dropline overdraft facility is a hybrid plan of term loan and overdraft facility.
What is a personal loan?
Personal Loan is a type of term loan. You can take this loan to meet your personal needs. In this, the customer also has the option of EMI along with repayment. In a personal loan, the loan holder gets a lump sum amount and repays the loan amount in installments. The bank also charges interest from the customer on the loan amount.
What is a flexi loan?
Flexi Loan is also a type of personal loan. In this, the bank or NBFC already approves the loan of the customer. The customer can use this loan amount as and when required. This is a kind of overdraft facility. In this, you can withdraw an amount more than the credit limit. Even the customer can avail the benefit of pre-payment in this service.
In a flexi loan, interest will be charged only on the amount in the account, that is, no interest will have to be paid on the remaining amount.
Which is the best option for you?
Flexi loan has low-interest rates and are easily available. This is a very good option for those customers who want to withdraw more money in less time.
If a customer wants intermittent cash flow, then an overdraft facility is a very good option for him. In this, customers can use the credit facility anytime.
Personal loans can be taken to meet specific needs. For example, a personal loan can be taken for home renovation, medical expenses, travel and to repay loans. Let us tell you that personal loan has higher interest rates as compared to other options.
PC Social media
