Eligibility Criteria

Eligibility criteria:

For OD:

  • For individuals: A minimum monthly salary set by the bank, to apply for OD. For example, HDFC Bank sets a minimum salary of Rs 15000 for their OD facility.
  • For businessmen:
    • Thebusiness should be running since minimum 3 years
    • The financial statements of last 3 years are assessed to determine eligibility.

For CC:

  • The business should be running since minimum 3 years.
  • Drawing power is calculated to determine the maximum loan limit.

Documentation: Documents required are generally the same for both

  • KYC (Know Your Customer) documents:
    • Pan Card (mandatory) as ID proof
    • Aadhar Card/ Electricity Bill as Address Proof
  • ITR (Income Tax Return) of last 2-3 years.
  • Bank Statement of last 6 months.
  • Collateral asset proof.


  • Various options are available to suit the needs of the customer. A few suchexamples are listed below.
    • ICICI Bank has an overdraft facility to assist the rural enterprises called Agri Credit Line.
    • Another special facility is for people with a salary account and a home loan in the bank called the “Home Overdraft” facility. It allows a maximum amount of 1 crore.(Further, all banks have different variants of the above examples.)
  • They save the small and medium enterprises from drowning due to lack of short-term funds.
  • They are easily available and have a quick processing time.
  • These are appropriate choices for the business where the amount of funding required cannot be estimated.

These insights will help you choose which one is best suited for your business. If you belong to the salaried class there are various sub-options of the OD facility.

Thus, whenever you get stuck in a web of problems related to short-term financing you know there is a way out. Say goodbye to your worries with these two incredible saviors.