Exploring Bank Overdraft

Hello friends,

I am doing good, and I hope that you are having a good time with your near and dear ones.

Banks offer different products and some of the products can be helpful for us. I think the bank account is a very basic product that almost every one of us uses no matter what country we live in. There is a variety of band pounds offering different features and now with technology, they have made with even smarter. Many banks offer a variety of online services and you don't need to visit the branch in person to get things done.

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In India, also banking system is also very advanced and they use the latest technologies. They are not on the blockchain but still, they provide smart services that include mobile banking and other services that can be done using mobile devices. They are also offering some additional features from the bank account including the overdraft but there are some criteria to meet.

I'm not into the job and I do my own business so sometimes I face a crunch with funds. One of my friends told me about the overdraft facility which can be helpful in such scenarios. Overdraft is a facility provided by the bank to the account folder in which we can withdraw the amount even when we have no balance in the bank account. A limit is provided to the account holder based on income and some other parameters. As a customer, we are free to use it and once it's used the bank will charge interest. There are some charges which can be considered as operating expenses for the bank but these charges are not so high.

I visited the Kotak bank branch recently as not every bank offers me a facility for individuals. Most banks offer this facility to businesses but for individuals very few offer it. In India Kotak is the bank that offers an overdraft facility to individuals. I got to know about it through my friend who has recently availed of it. I visited the branch and got the details about this product but I also want to check with some other banks for the comparison purpose. I will see if I need to go ahead with the Kotak Bank or another option would also be good if I could compare.

I think this is a useful product that will help me if I get access to it. I don't know what limit will be provided by the bank but whatever it would be those are my earnings should be helpful. I will take some time to do my research and decide which bank I want to continue with. As a user, my preference will always be to get this product at a lower interest and minimum processing fee and for this reason, I want to do my research.

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I will share more updates about it once I finalize the band and whatever benefits I'll be getting out of it. I have never been available and hopefully, my experience with overdrafts is going to be good. I know that this type of product exists in the market but most banks prefer to give it to businesses, not to individuals. For the first time, I see some banks considering individuals for this type of product and this is a room to start by the bank.

Thank you
Peace @mukund123

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