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Dropline Over Draft

Dropline Overdraft is a financial instrument that allows a borrower to overdraw cash from his/her current account up to an agreed limit, wherein the withdrawal limit reduces each month from the sanctioned limit. The interest rate is paid only on the withdrawn cash and not on the total borrowing limit.


  • Can be used on a monthly, quarterly, half yearly or yearly basis
  • Withdrawal limit reduces each month from initial sanctioned limit
  • Borrowing limit can go up to Rs. 10 crore at bank’s sole discretion
  •  The Dropline OD limit  comes with a max tenure of 15 years,and  it may vary from bank to bank
  • Only One-time processing fee is charged
  • No yearly renewal charge will be levied like Normal OD facility.


If the initial limit Sanctioned is Rs.1cr for 10years  then after first  month the OD limit shall automatically be reduced by 1,00,00,000/120 = Rs. 83,33.33. i.e  the OD limit available at the end of the first month shall be (1,00,00,000 – 83.333.33) = Rs. 99,16,666.66. The calculation shall proceed for the second month as well and every month  till the last month of repayment tenure.


  • The current market value of the property and its current status
  • Source of Income and business turnover
  • Existing obligations i.e.  installments (EMIs) currently paying, the number of credit cards and  credit limits if any
  •  credit/repayment history 

*It takes normally 10-15 working days to disburse the proposal subject to complete information and documentation given by the applicant/s.

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