Overdraft Facility or Credit Line is a financial instrument in which you can withdraw funds from your current or savings account, even in case your account balance is NIL. Nearly every financial lender offers this facility, incorporating NBFCs and banks. It’s a kind of short-term loan to be paid back in a defined duration as needed by the lender.
To borrow the overdraft facility, a small business must meet the following eligibility criteria:
GST returns for the last 1 year.
2 years of complete audit report for more than 10 lacs.
Promoter’s age should be more than 24 years.
Minimum business operational history should be 1 years.