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Key Features of Bajaj Finserv Business Loan Overdraft (OD) Facility

  • Flexible Withdrawals:
    • Businesses can withdraw funds as needed from a pre-approved credit limit, allowing for multiple withdrawals without additional applications.
    • The facility operates like a revolving line of credit, where the available limit is restored as repayments are made.
  • Interest Only on Utilized Amount:
    • Interest is charged only on the amount withdrawn, not on the entire sanctioned limit, making it cost-effective.
    • Interest is calculated daily based on the utilized amount and payable monthly.
  • Dropline Overdraft Mechanism:
    • The overdraft limit reduces monthly by a fixed amount over the loan tenure.
    • For example, a ₹1 lakh OD with a 12-month tenure reduces by ₹8,333 monthly, leaving ₹91,667 available the next month.
    • This structured reduction helps businesses plan repayments.
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  • No Fixed EMI Structure: Unlike traditional loans, there’s no fixed Equated Monthly Installment (EMI). Businesses can repay at their convenience within the tenure, with the option to pay interest-only EMIs initially.
  • Prepayment and Foreclosure Flexibility: No charges for part-prepayments or withdrawals, allowing businesses to manage cash flow efficiently. Foreclosure is possible without penalties in some cases, especially for floating-rate loans.
  • Secured and Unsecured Options: Available as both secured (e.g., against property or fixed deposits) and unsecured facilities, depending on the borrower’s profile. Secured options may offer lower interest rates. Unsecured OD requires no collateral, ideal for businesses without assets to pledge.
  • Quick Approval and Disbursal: Instant approval and fast disbursal, often within 24 hours, with minimal documentation. Funds are credited directly to the borrower’s account, ensuring immediate access.
  • High Loan Limits: Offers loans up to ₹45 lakh, suitable for business expansion, working capital, machinery purchase, or managing cash flow. The OD limit is determined by factors like business turnover, creditworthiness, and vintage.
  • Competitive Interest Rates: Interest rates start at 17% p.a. for business loans, with secured OD potentially lower. Rates vary based on business profile, credit score, and collateral. Daily interest calculation ensures cost efficiency for short-term borrowing.
  • Minimal Documentation: Requires basic KYC documents (Aadhaar, PAN, etc.), income proof (ITR, bank statements), and business-related documents (e.g., proof of business vintage). Self-employed professionals (e.g., doctors, CAs) may need to provide qualification proof.
  • Online Access and Management: Businesses can manage the OD account, view statements, and make payments via Bajaj Finserv’s customer portal or mobile app. Tools like EMI calculators and interest calculators are available for planning.
  • Customized for Business Needs: Tailored for SMEs, MSMEs, and women entrepreneurs, supporting working capital, inventory, or operational expenses. Ideal for businesses with fluctuating cash flows or seasonal demands.
  • No Guarantors Required: For unsecured OD, no guarantors or collateral are needed, simplifying the application process.
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Benefits of Bajaj Finserv Business Loan Overdraft

  • Flexible Fund Access: Withdraw funds as needed from a pre-approved credit limit, allowing businesses to address immediate or recurring expenses like inventory purchase or operational costs. Multiple withdrawals and repayments within the limit provide flexibility without repeated loan applications.
  • Cost-Effective Interest Structure: Interest is charged only on the amount withdrawn, not the entire sanctioned limit, reducing borrowing costs. Daily interest calculation ensures businesses pay only for the duration and amount utilized.
  • No Fixed EMI Burden: Unlike traditional loans, there’s no fixed EMI requirement. Businesses can opt for interest-only payments initially, easing cash flow management. Repayments can be made at convenience within the tenure, ideal for businesses with fluctuating income.
  • Dropline Overdraft Advantage: The credit limit reduces monthly by a fixed amount, providing a structured repayment plan while retaining access to funds.
  • Prepayment and Foreclosure Flexibility: No charges for part-prepayments or additional withdrawals, allowing businesses to manage surplus cash efficiently.
  • Secured and Unsecured Options: Unsecured OD requires no collateral, making it accessible for businesses without assets to pledge. Secured OD offers lower interest rates, benefiting businesses with assets seeking cost savings.
  • Quick and Hassle-Free Process: Fast approval and disbursal, often within 24 hours, ensure immediate access to funds for urgent needs. Minimal documentation simplifies the application process.
  • High Loan Limits: Loan amounts up to ₹45 lakh support diverse business needs, such as working capital, expansion, or equipment purchase. Suitable for businesses of varying scales, from small startups to established firms.
  • No Guarantor Requirement: Unsecured OD eliminates the need for guarantors, reducing dependency on third parties and speeding up the process.
  • Tailored for Business Needs: Designed for SMEs, MSMEs, and women entrepreneurs, addressing cash flow gaps, seasonal demands, or growth opportunities.
  • Online Account Management: Easy access to OD account details, statements, and repayment options via Bajaj Finserv’s customer portal or mobile app. Tools like EMI and interest calculators aid in financial planning.
  • Boosts Business Growth: Provides readily available funds to seize opportunities like bulk orders, new projects, or market expansion without disrupting cash flow. Helps maintain liquidity during lean periods or unexpected expenses.
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How to Apply for Bajaj Finserv Business Loan Overdraft

  • 1. Check Eligibility
    • Age: 25–55 years (for business owners or self-employed professionals)
    • Business Vintage: At least 3 years of operation
    • Credit Score: Preferably 750 or above for better approval chances
    • Income: Stable business income with filed ITRs for at least 2–3 years
    • Nationality: Indian resident
    • Professionals (e.g., doctors, CAs) may need qualification proof
    • Use the Bajaj Finserv eligibility calculator to confirm suitability
  • 2. Gather Required Documents
    • KYC Documents:
      • PAN card
      • Aadhaar card or other ID proof (passport, voter ID)
      • Address proof (utility bill, rental agreement)
    • Income Proof:
      • Last 2–3 years’ ITR with financial statements
      • Bank statements for the last 6–12 months
    • Business Proof:
      • Business registration certificate (GST, Udyam)
      • Shop Act license or equivalent
      • Partnership deed or incorporation docs (if applicable)
    • Professional Documents (if applicable): Qualification certificates for doctors, CAs, etc.
    • For Secured OD: Property documents or fixed deposit certificates
  • 3. Visit Bajaj Finserv Website or App
    • Go to www.bajajfinserv.in or download their mobile app
    • Navigate to “Business Loans” and select “Overdraft” or “Flexi Loan” option
  • 4. Fill the Online Application Form
    • Click “Apply Now” and enter personal details (name, contact, etc.)
    • Provide business info (type, vintage, turnover)
    • Enter desired loan amount (up to ₹45 lakh)
    • Select secured/unsecured OD and enter collateral details (if required)
    • Submit the form and receive a reference number
  • 5. Upload Documents
    • Upload scanned copies/photos in accepted formats (PDF, JPEG)
    • Ensure clarity and file size limits are followed
  • 6. Verification and Approval
    • Application and documents are verified
    • Credit score and business financials are checked
    • Property/collateral may be assessed for secured OD
    • Approval usually within 24–48 hours or instantly for eligible users
  • 7. Accept Loan Offer
    • Receive loan offer with OD limit, rate, tenure, and terms
    • Accept digitally through portal, app, or physical signing
  • 8. Disbursal of Funds
    • Post-acceptance, funds are disbursed or OD is activated within 24 hours
    • Access OD via your linked account or dedicated Bajaj Finserv account

Eligibility Criteria for Bajaj Finserv Business Loan Overdraft

  • Applicant Type: Self-employed individuals, business owners, or professionals (e.g., doctors, chartered accountants, architects). Entities such as proprietorships, partnerships, private limited companies, or LLPs. Women entrepreneurs and MSMEs are also eligible, with some tailored offerings.
  • Age: Applicant must be between 25 and 55 years of age at the time of application.
  • Business Vintage: The business must have been operational for at least 3 years (minimum business continuity). Some cases may require a higher vintage (e.g., 5 years) for larger loan amounts or specific professions.
  • Credit Score: A CIBIL score of 750 or above is preferred for higher approval chances and better interest rates. A lower score may still qualify but could result in higher rates or additional scrutiny.
  • Income and Financial Stability: Stable business income demonstrated through:
    • Filed Income Tax Returns (ITR) for the last 2–3 years.
    • Profit and loss statements or balance sheets (if applicable).
    • Minimum annual turnover or income requirements may vary (typically specified during application, e.g., ₹3–5 lakh p.a., depending on loan size).
    • Bank account statements (last 6–12 months) showing consistent cash flow.
  • Nationality and Residency: Applicant must be an Indian resident. Valid address proof (e.g., Aadhaar, utility bill) is required to confirm residency.
  • Business Documentation: Valid business registration documents, such as:
    • GST registration certificate.
    • Udyam registration (for MSMEs).
    • Shop and Establishment Act license or equivalent.
    • Partnership deed, Memorandum of Association (MoA), or incorporation certificate for partnerships/companies.
    • Proof of business continuity (e.g., invoices, contracts) may be requested.
  • Professional Qualifications (if applicable): Self-employed professionals (e.g., doctors, CAs, engineers) must provide:
    • Relevant qualification certificates (e.g., medical degree, CA certificate).
    • Valid practice license or registration with professional bodies (e.g., Medical Council, ICAI).
  • Collateral (for Secured OD): For secured overdraft, collateral such as property (residential/commercial) or fixed deposits may be required. Property documents must be clear, with no legal disputes, and meet Bajaj Finserv’s valuation criteria. Unsecured OD does not require collateral or guarantors.
  • Industry/Business Type: Businesses in most sectors (e.g., retail, manufacturing, services, trading) are eligible, except those in prohibited industries (e.g., speculative businesses, illegal activities). Professionals like doctors or CAs running private practices are also eligible.
  • Existing Relationship: Applicants with an existing relationship with Bajaj Finserv (e.g., previous loan or EMI card) may receive quicker approval and processing benefits.
  • Repayment History: A positive repayment track record on past or current loans will strengthen the application.
  • Business Location: The business should operate from a verifiable and stable address. Preference is given to commercial or owned premises.
  • Digital Profile: A strong digital presence, such as online transactions, GST e-filings, or e-invoicing, can enhance eligibility.
  • No Major Defaults: The business and applicant should not have any recent loan defaults, write-offs, or fraudulent history reported in credit bureaus.
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Documents Required for Bajaj Bank Business Loan Overdraft

  • For All Applications
    • Identity Proof (for applicant and co-applicant, if any): PAN card (mandatory), Aadhaar card, Voter ID, Passport, Driving license
    • Address Proof (for applicant and business): Aadhaar card, Voter ID, Passport, Utility bill (electricity, water, or gas bill, not older than 3 months), Rental agreement or property tax receipt
    • Business Proof: GST registration certificate, Trade license, Shop and Establishment Act certificate, Partnership deed (for partnership firms), Certificate of incorporation and Memorandum of Association (for private limited companies), Proof of business continuity
  • Financial Documents
    • Income Tax Returns (ITR): ITR with computation of income for the last 2 years (3 years for Loan Against Property OD)
    • Balance Sheet and Profit & Loss: Certified by a Chartered Accountant for the last 2-3 years
    • Bank Statements: 12 months' statements (personal and business accounts, preferably from a current account)
    • GST Returns: For last 12 months (if applicable)
  • Product-Specific Documents
    • For Loan Against Property OD: Title deed, Approved plan, Property tax receipts, Encumbrance certificate, NOC from society (if applicable)
    • For OD Against Securities/Mutual Funds: Demat account statement, Mutual fund statements or bond certificates
    • For Digi OD: Minimal documentation; optionally URC certificate or recent address proof
    • For Agri-SME OD: Warehouse receipts for agricultural commodities from approved warehouses
  • Application Form
    • Passport-size photographs of the applicant

Factors for Bajaj Bank Business Loan Overdraft (OD)

  • Creditworthiness of the Applicant: A CIBIL score of 700 or above is preferred for unsecured OD facilities. No defaults or late payments on existing loans or credit cards. The bank assesses the applicant's ability to manage additional debt.
  • Business Profile and Stability: Minimum of 2 years of continuous profitable operation. The nature of the business determines product suitability. Stable and consistent cash flow supports repayment capacity.
  • Financial Documentation: ITR for last 2-3 years shows financial health. 12 months' bank statements reflect transaction volume and cash flow. GST returns validate business activity and turnover.
  • Collateral (for Secured OD): For Loan Against Property OD, ownership of property free of legal disputes is key. For OD Against Securities, approved investments must be pledged.
  • Bajaj Current Account Activity: Regular transactions in Bajaj current account are mandatory. Healthy account activity improves approval chances and limit determination.
  • Loan Amount and Purpose: The requested OD limit must align with business turnover and repayment capacity. Clear articulation of purpose (working capital, expansion etc.) strengthens application.
  • Banking Relationship: Existing Bajaj customers may receive faster processing or better terms. Long-term relationship with regular transactions improves approval chances.
  • Interest Rates and Fees: Rates start from 12.75% p.a. (business loan rates 16.00% to 19.99%). Processing fees up to 3% for personal loan overdrafts. Renewal charges: 1% of renewal limit or ₹5,000, whichever is higher.
  • Repayment Capacity: The bank evaluates ability to pay interest on utilized amount. For Drop-Line OD, the reducing limit structure requires disciplined financial management.
  • Applicant's Profile: Age must be 25-65 years at loan maturity. Should be business owner/partner/director with authority to apply. Professional qualifications may be required for certain facilities.

Frequently Asked Questions (FAQs)

What is a Bajaj Finserv Business Loan Overdraft (OD)?
It’s a flexible financing facility allowing businesses to withdraw funds as needed from a pre-approved credit limit (up to ₹45 lakh). Interest is charged only on the utilized amount, and the limit reduces monthly (dropline OD). It’s ideal for managing working capital, cash flow, or seasonal expenses.
Who is eligible for a Business Loan OD?
Eligible applicants include:
  • Self-employed individuals, business owners, or professionals (e.g., doctors, CAs).
  • Businesses (proprietorships, partnerships, LLPs, companies) with 3+ years of vintage.
  • Age: 25–55 years.
  • Credit score: Preferably 750+.
  • Stable income with ITRs for 2–3 years.
  • Indian residents with valid KYC.
What is the difference between secured and unsecured OD?
Secured OD: Requires collateral (e.g., property, fixed deposits), offers lower interest rates, and may allow higher limits.
Unsecured OD: No collateral or guarantors needed, but interest rates may be higher (starting at 17% p.a.).
What is the maximum loan amount for the OD facility?
Up to ₹45 lakh, depending on business turnover, credit score, repayment capacity, and collateral (for secured OD). The dropline limit reduces monthly over the tenure.
How is interest calculated for the Business Loan OD?
Interest is charged only on the amount withdrawn, not the entire limit. It’s calculated daily and payable monthly, starting at 17% p.a. Rates vary based on credit profile and whether the OD is secured or unsecured.
What is the dropline overdraft feature?
The available credit limit reduces by a fixed amount monthly over the tenure. For example, a ₹10 lakh OD with a 12-month tenure reduces by ~₹83,333 monthly, ensuring structured repayment while allowing flexible withdrawals.
What documents are required to apply for the OD?
KYC: PAN, Aadhaar, address proof (e.g., utility bill), passport-size photo.
Income Proof: ITRs (2–3 years), bank statements (6–12 months), financial statements.
Business Proof: GST certificate, Udyam registration, shop license, or partnership deed.
Professional Documents: Qualification certificates for doctors, CAs, etc.
Secured OD: Property documents or fixed deposit certificates.
How can I apply for a Bajaj Finserv Business Loan OD?
Online: Visit bajajfinserv.in or use the Bajaj Finserv app, fill the application form, upload documents, and submit.
Offline: Visit a Bajaj Finserv branch or authorized partner with documents.
Approval typically takes 24–48 hours, with funds disbursed to your account.
What is the processing time for the OD application?
Applications are processed within 24–48 hours after document submission and verification. Secured OD may take slightly longer due to collateral valuation.
Are there any processing fees for the OD facility?
Yes, a non-refunded processing fee (up to 2% of the loan amount) may apply, depending on the loan terms. Confirm during application.

List of Kotak Bank Business Loan Facilities

  • Flexi Term Loan Overdraft
  • Flexi Hybrid Loan Overdraft
  • Overdraft Against Property
  • Gold Overdraft Loan
  • Dropline Overdraft (Secured)
  • Dropline Overdraft (Unsecured)
  • Overdraft Against Fixed Deposit