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Overdraft Facility Calculator.
Unlike an EMI loan, an overdraft charges interest only on what you actually draw from your sanctioned limit — see your real cost based on typical utilization.
Overdraft facility
Overdraft interest calculator
Unlike an EMI loan, you're charged interest only on what you actually draw — not the full sanctioned limit — and there's no fixed monthly installment to repay.
What can back an overdraft facility?
Common options include an overdraft against your salary account, a fixed deposit, property, or an existing home loan (a "top-up OD"). An FD-backed overdraft is typically the cheapest, since the FD itself serves as collateral — often just 1-2% above your FD's own interest rate.
Frequently asked questions
How is an overdraft facility different from a personal loan?
A personal loan disburses a fixed lump sum with a fixed EMI schedule. An overdraft is a revolving credit line against a sanctioned limit — you draw only what you need, when you need it, and pay interest only on the amount actually utilized, not the full limit. There's no fixed monthly installment; you repay and redraw as your cash flow allows.
What can I get an overdraft against?
Common options include an overdraft against your salary account, fixed deposit, property, or existing home loan (a "top-up OD" facility). The rate and limit depend heavily on what's backing it — an FD-backed overdraft is typically cheapest since the FD itself is collateral.
Is an overdraft cheaper than a personal loan?
It can be, if you don't utilize the full limit continuously — since you only pay interest on what you draw, an overdraft used intermittently often costs less in total interest than a personal loan sized to your peak need. If you plan to use the full limit constantly, a personal loan's fixed, often lower headline rate may work out cheaper instead.