Overdraft is a credit facility established usually in local currency for a specific period of time at given rates of interest (subject to market changes) whereby a customer is allowed to overdraw his current account up to the agreed limit.

Financial and other Benefits
Overdraft is generally allowed to facilitate revolving working capital requirement of a business. In case of a personal customer, overdrafts are allowed to facilitate personal requirements.

Costs (Interest, Fees, Charges, Commissions)
Interest is calculated on daily balances and applied at monthly intervals. The applicable rate will be indicated in the Letter of Offer. Documentation fees / processing fees / legal fees / valuation fees are applicable depending on the amount of the facility and security offered.

Procedure to be followed to obtain the product/service
A letter requesting for an overdraft facility along with the necessary supporting documents should be submitted to the Branch Manager of the account holding Branch.

Key Terms and Conditions

  • A customer who has maintained a satisfactorily conducted current account and without adverse credit history with SBK or other Financial Institutions can apply for an overdraft facility.
  • In the case of a personal client, Term Loans are granted to meet any acceptable personal requirements.
  • Overdraft facilities are allowed primarily for working capital requirements (Personal requirements in case of personal customers) and repayable on demand.
  • Collateral / security acceptable to the Bank should be provided.
  • The Bank reserves the right to reject any application without assigning reasons thereof. However, when a facility is rejected reasons for such rejection are communicated to the client.