Drop-line Overdraft (DLOD)
Drop-line Overdraft (DLOD) is a facility granted to the customer by the financial institution where businesses can overdraw from their current account up to a limit that is agreed upon by the banker. Overdraft is one of the most efficient forms of borrowing as one needs to pay interest only for the amount of money withdrawn.
The Drop-line overdraft is almost similar in all the cases except in new cases as there is the availability of the limit. This withdrawal limit reduces each month from the limit which is sanctioned. The calculation of the Interest rate is done on a daily basis and it is charged at the month's end. You will be charged only for the amount used, you can always park your funds in a virtual account whenever funds are not in use.
Features of Drop-line Overdraft:
1. It can come in both forms of loan i.e. Secured and unsecured loan
2. In case one opts for unsecured DLOD, there is no requirement of any collateral to be provided.
3. DLOD is a hybrid of both term loans and overdraft facilities.
4. The limit of the withdrawal reduces monthly from the sanctioned limit.
5. The facility is only available for the current account, which means the amount is only credited to the current account from the bank.
6. The interest is calculated on a daily basis as the amount is withdrawn and is charged only on a monthly basis.
7. DLOD is the best facility for manufacturers, retailers, traders, and service providers.
8. There is no kind of yearly renewal charges levied.
Who is eligible for the Drop-line Overdraft facility?
The DLOD facility can be availed by any entrepreneur, proprietors, self-employed professionals, private companies or partnership firms, etc.
What are the documents needed for the DLOD facility?
General requirements
- KYC Documents of borrower and co-applicants.
- Aadhar Card
- PAN Card
Statutory documents
In the case of a Proprietary Firm:
- Shop Act
- GST certificate
- Udyog Adhar certificate
In the case of Partnership Firm:
- Shop Act
- GST certificate
- Udyog Adhar certificate
- Partnership deed
In the case of a Private limited company:
- Certification of incorporation
- AOA
- MOA
Income documents
- Last 3 years Financials (audited)
- Last 3 years ITR
- Existing loans status
- 1-year Banking
Why Terkar Capital for DLOD Facility?
If you are looking for an institution that you can rely on for availing Drop-line Overdraft facility, Terkar Capitalis the one you should reach out to. We at Terkar Capital work for corporate to raise the funds and will make sure you have a hassle-free experience in the funding. Our transparency, confidentiality, and professionalism make us efficient to operate and arranging the funds. So whatever and whenever the requirement is, Terkar Capital will be ready to serve you.
