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Key Features of Federal Bank Overdraft (OD) Facilities

  • Flexible Withdrawals: Access funds up to an approved limit as needed through multiple channels including ATMs, online banking, and POS terminals. You only pay interest on the amount withdrawn and for the duration it is used.
  • Interest on Utilized Amount: Unlike traditional loans where interest is charged on the entire amount, OD facilities charge interest only on the withdrawn portion, making it cost-effective for intermittent funding needs.
  • Revolving Credit: Repay the withdrawn amount at your convenience, and the credit limit is replenished, allowing you to borrow again without reapplying.
  • Quick Access: Funds can be accessed instantly via NetBanking, mobile banking, or ATMs, offering convenience for urgent needs.
  • Use Cases: Ideal for managing cash flow, handling emergencies, or funding short-term expenses without committing to a fixed EMI schedule.
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    • Eligibility: Available to individuals (including NRIs) and businesses with qualifying assets (RD, FD, SGB, or shares) or salary accounts.
    • Minimum Requirements: Varies by product - Fed Rise requires an active FSF Recurring Deposit; Salary OD requires regular salary credits.
    • No Collateral Required for Salary OD: Salary Overdraft is unsecured, while other ODs are secured by assets like RD, FD, SGB, or shares.
    • Credit Score Importance: More critical for unsecured Salary OD; secured ODs have relaxed credit requirements.
    • Pre-approved Offers: Existing Federal Bank customers may receive pre-approved OD offers with minimal documentation.
    • Flexible Repayment: No fixed EMIs - repay as per your cash flow convenience.
    • Interest Rates: Typically lower than credit cards but may be higher than standard personal loans, charged only on utilized amount.
    • Limit Determination: The OD limit is set based on asset value (90% for RD/FD/SGB, 50-60% for shares) or salary (2-3x monthly salary for Salary OD).
    • Digital Management: Monitor and manage your OD facility through Federal Bank's NetBanking and mobile app.
    • Renewal: The OD facility typically needs to be renewed annually, subject to review of your financial profile and asset value.
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Benefits of Federal Bank Overdraft (OD) Facilities

  • Flexible Fund Access: Acts like a revolving credit line, allowing you to withdraw funds up to an approved limit as needed. Ideal for managing cash flow, emergencies, or short-term expenses without committing to a fixed loan amount.
  • Interest Only on Utilized Amount: Pay interest only on the amount withdrawn and for the duration it is used, unlike traditional loans where interest applies to the entire principal from day one. This makes the OD facility cost-effective for intermittent or variable funding needs.
  • Revolving Credit Line: Repay the withdrawn amount at your convenience, and the credit limit is replenished, allowing repeated borrowing without reapplying. Offers greater flexibility compared to fixed EMI-based personal loans.
    • Instant Access to Funds: Withdraw funds instantly via NetBanking, mobile banking, or Federal Bank ATMs, ensuring quick liquidity for urgent requirements.
    • Preservation of Investments: Secured ODs (Fed Rise, FD, SGB) allow you to access liquidity without liquidating valuable assets that continue to earn returns.
    • No Fixed EMI Commitment: Unlike personal loans with mandatory monthly EMIs, the OD facility allows you to repay at your pace, making it suitable for those with irregular cash flows.
    • Cost-Effective for Short-Term Needs: Since interest is charged only on the utilized amount, it's ideal for short-term borrowing, reducing overall interest costs.
    • Comparative Advantage Over Personal Loans: While personal loans are best for one-time, large expenses with fixed EMIs, the OD facility is suited for ongoing or unpredictable expenses with flexible withdrawals.
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How to Apply for Federal Bank Overdraft (OD) Facility

  • 1. Check Eligibility for OD
    • Online: Visit the Federal Bank website or log in to NetBanking to check for pre-approved OD offers under "Loans" or "Overdraft Facility."
    • Use the mobile banking app to explore OD eligibility.
  • 2. Online Application (Website)
    • Steps:
      • Visit the Federal Bank website or the dedicated Loans page.
      • Navigate to the "Overdraft" section under "Borrow" or "Loans."
      • Click "Apply Now" or "Check Eligibility."
      • Enter basic details: mobile number, PAN, date of birth, occupation, and employment type.
      • Check for pre-approved offers (if applicable) by logging in or providing additional details.
      • Select OD amount and provide asset details if applying for secured OD.
      • Upload required documents: identity proof, address proof, and income proof (for Salary OD).
      • Submit the application and receive an application reference number.
      • Track the status online or via the mobile banking app.
    • Benefits:
      • Pre-approved customers get funds quickly with minimal documentation.
      • Secured ODs get faster approval due to collateral backing.
      • Fully digital process available for many OD products.
  • 3. Mobile Banking App
    • Steps:
      • Download the Federal Bank mobile banking app from the iOS App Store or Google Play Store.
      • Register using your mobile number and verify with an OTP.
      • Select "Loans" and check eligibility or pre-approved offers.
      • Fill in details: PAN, income, employment details, and OD requirements.
      • Upload documents (if required) directly via the app.
      • Submit the application and track progress in real-time.

Eligibility Criteria for Federal Bank Overdraft (OD) Facility

  • Age:
    • Minimum: 18 years at the time of application.
    • Maximum: 60 years at the time of facility maturity or renewal.
  • Employment Type:
    • Salaried individuals for Salary OD
    • Individuals and businesses for secured ODs (Fed Rise, FD, SGB, Demat Shares)
    • Existing Federal Bank customers are prioritized for pre-approved OD offers.
  • Work Experience (Salary OD):
    • Minimum 6 months of total work experience.
    • At least 3 months with the current employer, demonstrating job stability.
  • Net Monthly Income (Salary OD):
    • Minimum ₹25,000 per month for most customers.
    • Higher income thresholds may apply for larger OD limits.
  • Credit Score:
    • A minimum CIBIL score of 650 is required for Salary OD, but 700+ is preferred.
    • Secured ODs have relaxed credit requirements due to collateral backing.
  • Bank Relationship:
    • Existing Federal Bank customers with salary accounts, savings accounts, or prior loan history are prioritized for OD offers.
    • A strong banking relationship increases approval chances.
  • Documentation:
    • Valid KYC documents, salary slips (for Salary OD), bank statements, and employment proof must be submitted during application.
    • Pre-approved customers may get instant OD activation with minimal documentation through net banking or mobile app.
  • Asset Requirements (Secured ODs):
    • Fed Rise: Active FSF Recurring Deposit
    • FD OD: Active Fixed Deposit
    • SGB OD: Sovereign Gold Bonds in demat or physical form
    • Demat Shares OD: Approved shares in demat account
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Documents Required for Federal Bank Overdraft (OD) Facility

  • For Pre-Approved Customers:
    - No documents required if KYC-compliant
    - OD limit activated instantly upon acceptance via NetBanking, mobile app, or branch request
  • For Non-Pre-Approved Customers:
    Identity Proof (Any one, self-attested photocopy):
    - Aadhaar Card, Passport, Voter ID
    - Driving License,
    - PAN Card (mandatory for processing)
  • Address Proof (Any one, self-attested photocopy):
    - Aadhaar Card, Passport, Voter ID
    - Driving License
    - Utility bill (not older than 3 months)
    - Registered rental agreement
  • Income Proof (Salary OD):
    - Latest 3 months' salary slips
    - Bank statements of the salary account for the last 3-6 months
    - Form 16 (for the latest financial year)
  • Asset Documents (Secured ODs):
    - Fed Rise: RD passbook or statement
    - FD OD: FD receipt or statement
    - SGB OD: SGB certificate or demat statement
    - Demat Shares OD: Demat account statement
  • Additional Documents (If requested):
    - 2 passport-sized photographs
    - Employment proof (company ID, appointment letter, or employer certificate)
    - OD application form (provided by the bank)
    - Proof of banking relationship (Federal Bank account statements, if applicable)

Factors Affecting Federal Bank Overdraft (OD) Facility

  • Credit Score and Credit History:
    - A CIBIL score of 650+ is required for Salary OD, with 700+ preferred
    - Clean credit history (no defaults, low credit utilization) is essential for unsecured ODs
  • Income Level (Salary OD):
    - Minimum net monthly income: ₹25,000 for most customers
    - Higher income supports larger OD limits
  • Employment Stability (Salary OD):
    - Minimum 6 months' total work experience and 3 months with current employer
    - Employment with reputed organizations boosts eligibility
  • Bank Relationship:
    - Existing Federal Bank customers are prioritized for pre-approved OD facilities
    - History of regular transactions and timely repayments increases approval chances
  • Debt-to-Income (DTI) Ratio:
    - A lower DTI ratio (below 50%) is preferred
    - High existing debt may restrict OD limits
  • Age of Applicant:
    - Applicants must be 18-60 years old
    - Younger applicants may receive longer OD facility terms
  • Asset Value (Secured ODs):
    - For Fed Rise: RD balance and maturity value
    - For FD OD: FD amount and tenure
    - For SGB OD: Current gold prices and bond value
    - For Demat Shares OD: Market value and quality of shares
  • Account Activity:
    - Active salary or savings account with consistent monthly credits is favorable
    - Dormant or irregularly used accounts may reduce chances of approval

Frequently Asked Questions (FAQs)

What is an Overdraft (OD) facility at Federal Bank?
The OD facility is a revolving credit line that allows customers to withdraw funds beyond their account balance up to a pre-approved limit. Federal Bank offers several types including Fed Rise (against RD), FD Overdraft, Salary Overdraft, SGB Overdraft, and Demat Shares Overdraft. Interest is charged only on the amount withdrawn, with no fixed EMI requirement.
How is the OD facility different from a personal loan?
Personal Loan: Lump-sum amount with fixed EMIs over a set tenure (12-60 months).
OD Facility: Flexible credit line where you withdraw and repay at your convenience, paying interest only on the utilized amount. Ideal for short-term or variable needs.
What is Fed Rise OD?
Fed Rise is Federal Bank's innovative overdraft against Federal Savings Fund (FSF) Recurring Deposit (RD). It allows you to borrow up to 90% of your RD's maturity value or outstanding balance without breaking the deposit. The RD continues to earn interest while you access funds as needed.
Who is eligible for Federal Bank's OD facilities?
Fed Rise/FD/SGB OD: Individuals (including NRIs) and businesses holding the respective asset (RD, FD, or SGB) with Federal Bank.
Salary OD: Salaried individuals with a Federal Bank salary account and regular salary credits.
Demat Shares OD: Individuals/businesses with approved shares in a demat account.
Age: 18-60 years for most products.
What documents are required for the OD facility?
Pre-approved customers: No documents if KYC-compliant.
Non-pre-approved customers:
  • KYC documents (Aadhaar, PAN, etc.)
  • Income proof for Salary OD (salary slips, bank statements)
  • Asset documents for secured ODs (RD/FD/SGB statements, demat account details)
How is the OD limit determined?
The limit depends on:
  • Fed Rise/FD/SGB OD: Up to 90% of asset value
  • Demat Shares OD: 50-60% of share market value
  • Salary OD: Typically 2-3 times monthly salary
Specific limits vary based on the applicant's profile and asset quality.
What are the interest rates for OD facilities?
Interest rates vary by product and are typically:
  • Lower for secured ODs (Fed Rise, FD, SGB) as they are collateral-backed
  • Higher for unsecured Salary OD
  • Charged only on the utilized amount, calculated daily
Exact rates depend on your credit profile and are disclosed at approval.
How can I access OD funds?
Funds can be withdrawn through:
  • NetBanking
  • Mobile banking (Federal Bank app)
  • Federal Bank ATMs
  • Branch requests
  • Linked account transactions
Is there a repayment schedule for the OD facility?
No fixed EMIs are required. You repay the withdrawn amount at your convenience, and the credit limit is replenished for future use. Interest is charged monthly on the utilized amount. For Salary OD, repayments are often aligned with salary credits.
Can I increase my OD limit?
Yes, you can request a limit increase based on:
  • Improved income or credit score (Salary OD)
  • Growth in asset value (Fed Rise, FD, SGB, Demat Shares)
  • Stronger banking relationship
Contact Federal Bank via a branch, NetBanking, or mobile app for reassessment.

List of Overdraft (OD) Facilities at Federal Bank

  • Fed Rise – Overdraft Against Recurring Deposit
  • Overdraft Against Fixed Deposit
  • Salary Overdraft Facility
  • Overdraft Against Sovereign Gold Bond
  • Overdraft Against Demat Shares
  • Overdraft Against Property
  • Business Overdraft Facility
  • Current Account Overdraft