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What is a Dropline Overdraft Loan?
A Dropline Overdraft Loan is a secured loan against a property which is evaluated for the creditworthiness and the loan amount is reduced frequently while the ownership of the property remains with the individual only.

Who can avail the Dropline Overdraft Facility?
The Dropline overdraft facility can be availed by both individuals and businesses. Individuals can be self-employed or self employed professionals and the businesses can be incorporated as a proprietorship, partnership, private limited or public limited companies. Clear ownership of the property is mandatory in case of secured loans.

What are the various Overdraft facilities available?
There are primarily two types of overdraft facilities available.

• 1.Plain Overdraft Facility
  The borrower is assigned an overdraft limit on their account and the interest is charged on the amount utilised, one has to pay the annual maintenance fee for the Overdraft Facility.
• 2.Dropline Overdraft Facility
  An Overdraft facility where the loan amount is reduced periodically, it could be monthly, quarterly or as per the terms set by the lender. There are no maintenance charges and one needs not to pay the principal amount as it eventually gets reduced to zero under periodic reduction.

How much loan can I get against the property value?
Although every lender has their own specific terms. However, as a general observation one normally gets around 70% of the property’s value as the dropline overdraft loan.

How is the eligibility calculated for the Dropline Overdraft Loans?
Here are the basic parameters for the eligibility of Dropline Overdraft Loans.

• ●Applicant should have an active source of revenue and should be between 25 to 65 years of age
• ●A decent credit history that allows one the eligibility to loans
• ●Employment and Professional Experience Records
• ●A clear purpose of the loan

Is the Dropline Overdraft loan available only against collateral?
While the overdraft loans can be both secured and unsecured. The unsecured loans are usually for a lesser amount and come at a higher interest rate similar to personal loan interest rates. While the businesses usually prefer a secured overdraft loan that gives them access to a lesser interest rate and a higher overdraft amount.

Can I utilise a co-owned property as security for dropline overdraft loan?
Yes. However, all the co-owners of the property will become co-applicants and will have to do all the formalities required for the loan.

How much time does it take to get a dropline overdraft loan?
A dropline overdraft loan can be availed within 7-10 working days after completing the necessary documentation as prescribed by the lender. LoansJagat helps with complete clarity on documentation and even provides a dedicated loan officer to help complete the formalities at the earliest. The process also includes evaluating the market value of the property which is necessary for evaluating the loan amount of the borrower.

What is the market value of the property?
Simply put it is the price a property might fetch under the current market situations

What types of properties are accepted for Dropline Overdraft Loan?
While the leading Banks and NBFCs consider residential and commercial properties. Most lenders also consider a plot of land without construction or an industrial property to provide an overdraft loan.

What is the average tenure of the Dropline Overdraft Loan?
While the tenure depends on the borrower and the lender, the average ensure for a dropline overdraft loan is normally 10 to 15 years.

What is the interest charged on the dropline overdraft loan?
Interest is calculated based on the eligibility criteria and might be different for every lender. However, in general, it ranges between 9.5% to 13% p.a for Dropline Overdraft Loans.

What are the common usages of a Dropline Overdraft Loan?
The Dropline Overdraft Loan is commonly used by businesses for managing their working capital requirements and some businesses also use these loans to manage their inventory, purchase equipment and various other usages for business growth and continuity.

What is the processing fee for Dropline Overdraft Loan?
The processing fee varies for every lender. However, LoansJagat provides complete visibility of the processing fee charged by the lenders in order to make an informed decision. While the fee varies, it is often around 1% of the loan amount.

What are the minimum and maximum Dropline Overdraft amount available?
There are several factors that determine the absolute value of a loan, these factors include the property’s market value, borrower’s credit profile, income and repayment sources, business usages amongst several others. However, most lenders offer the Dropline Overdraft Loans from INR 20 Lakhs to INR 100 Crores.

How can I avail a Dropline Overdraft Loan?
LoansJagat provides a quick and easy platform where one may provide the requirements and compare the features of the loan offered by more than 40 Banks and NBFCs to get the best deal on the Dropline Overdraft Loans. LoansJagat also provides a dedicated loan officer to help with the requirements along with the complete visibility of the loan status. The end to end loan application is being processed by LoansJagat’s professionals at the ease of your doorstep.