How do Overdraft and Personal loan works? - Know what is better.

While finding the solution for your financial prerequisite you will come across many solutions. But it is advisable to have some research before choosing one! 

Check your requirements as per your eligibility and choose the convenient financial provision catered by banking and non-banking companies.

Synopsis- The recent tech advancement made in the finance industry is developed for the users' convenience. 

Basically, FinTech’s are bridging the financial gap by the all-time availability on your mobile. 

Difference between a Personal loans and Overdraft, which one is better for you? 

How to understand what you need?

  • Meaning 

Personal loan - Personal loan is a debit given by banking with collateral and non-banking firms with no collateral. You don't need to be existing customers of financial firms. It is a long-term loan that is used for any and every purpose. 

Overdraft - Overdraft is available for existing customers depending on their account balance. It will allow you to withdraw excess funds than the amount in your account for a shorter period of time.

If you are looking for a loan tenure and a large amount then you should choose an instant personal loan, it will also spare you a prolonged period of time as compared to the Overdraft facility. 

  • Eligibility

Personal loan - Every organization have different documentation requirement. A personal loan is made simple with the help of new technologies in finance now known as FinTech. 

For a personal loan, you need - Credit score, bank statement, KYC documents such as an Aadhar card and pan card. 

The lengthy traditional process is made simple with the help of personal loan app like ZinCash. You need a credit score of 640 only, a minimum 15k salary, bank statement, KYC documents for a loan amount ranging from Rs 10,000 to 2 lakh. 

Overdraft facility - On the contrary, you don't need any verification documents for an overdraft facility as long as you have a bank account in the same financial organization you need overdraft from. 

The bank authorizes only the existing account holders to withdraw the excess amounts according to your account performance.

You can choose accordingly, if a personal loan in Mumbai is taken from NBFCs you need minimal documents for a large amount. And for overdraft, you need to have a bank account in the same organization.

FAQ –

·         Can I take a loan from a Non-banking firm?

-          Yes, a Personal loan from NBFC is a safe, easy, and quick way to get a loan quickly. 

Note- Check if the application is genuine. 

·         Is an instant personal loan app safe?

-          Yes, it is easy to apply and get a loan. 

·         Can I take overdraft if I don't have an account in the same bank?

-          No, you need to have a bank account with the same organization for an overdraft facility. 

 

Conclusion - Urgent personal loan and Overdraft are facilities you can use in time of need. But for organizing your financial activities you need to manage your decisions. The small changes in understanding your personal finance will create a greater impact in the coming future.

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