Question 1

How is an OverDraft Against Property different from a regular loan?

Accepted Answer

In a regular loan, you get the full loan amount upfront and start paying EMI immediately.
 In OD Against Property, you get a credit limit, and you withdraw as needed. Interest is charged only on utilized funds, offering greater flexibility and interest savings.

Question 2

Can I withdraw and repay multiple times?

Accepted Answer

Yes! An Over Draft account works like a current account. You can withdraw and deposit funds as many times as needed, within the sanctioned limit.

Question 3

How do I repay Over Draft Against Property?

Accepted Answer

• You pay monthly interest on the utilized amount.
 • You can repay the principal anytime during the tenure.
 • Some lenders offer EMI-based OD variants too.

Question 4

Can I get Over Draft Against Property with an ongoing home loan or LAP?

Accepted Answer

Yes, if your property still has equity (unused value), lenders may offer an OD as a second charge or through balance transfer + OD facility. FundFlow can guide you on best-fit options.

Question 5

What happens if I don’t use the OD limit at all?

Accepted Answer

If you don’t withdraw from the sanctioned OD limit, no interest is charged. However, some lenders may charge a minimum maintenance or renewal fee annually. FundFlow helps you understand all such terms upfront.

Question 6

Are there any tax benefits on Over Draft Against Property?

Accepted Answer

If the funds are used for business purposes, the interest paid on the overdraft may be claimed as a business expense under the Income Tax Act. FundFlow can advised you to consult your CA for specific cases.

OD AGAINST PROPERTY

OD AGAINST PROPERTY