Temporary Overdraft Facility

The Bank may extend the Temporary Overdraft Facility to selected and creditworthy customers of the bank for a repayment period not exceeding three months to relieve their temporary working capital constraints. Prior to the extension, the customer should settle the accrued interest for the first extension and shall pay 25% of the principal amount for the second extension. The facility must be backed by acceptable collateral. However, the bank may avail the facility for creditworthy customers on a clean basis.

In addition to the General Eligibility Criteria, the customer shall fulfill the following specific requirements.

  • The facility shall be extended only to those customers facing a severe working capital shortage
  • The facility shall not be extended for existing clean base Overdraft borrowers.
  • The facility shall be availed to Credit Risk Grade 1, 2, or 3 customers.