Being a Over Draft Against Property borrower is hard enough, but if you are faced with an emergency situation, things become even more difficult for you. Most of you may think of applying for another loan to meet your short-term requirements or ask for your family or friends for help. However, there are other options also that would save you all this trouble. Loan against property overdraft is one such option, a facility provided by banks to acquire short-term funds against an asset.
A business overdraft is an ideal financial option to cover short-term finance needs, particularly seasonal requirements and unexpected expenses. A business overdraft operates as a line of credit facility that is most commonly used to cover working capital requirements. Business overdraft facilities work by providing access to an agreed amount of money. You can draw down up to your limit at any stage, and there are no repayments required as long as the amount you have drawn down and the interest charged does not exceed your agreed limit. The overdraft facility operates on a variable interest rate with a cheque account attached, and you may or may not need to provide security or collateral, depending on the lender.