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Merchant Overdraft

Apply for Merchant Overdraft (OD) online and avail credit facility starting 1Lakh* for working Capital Needs.

Features

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Pay as you use

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Utilize limit when required

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What is Merchant OD?

Merchant Overdraft (MOD) is defined as overdraft facility for servicing their working capital needs. MOD facility is provided to self-employed individuals involved in service or trade operations. MOD facility is provided with immovable property as collateral. MOD facility should not be utilized for speculative trading such as investment in capital markets etc.

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FAQs

Which are the domains of business which are offered a Merchant Overdraft?-
The Merchant Overdraft is specifically designed for businesses that lie in the category of traders, retailers, service providers, etc.
How is a Merchant Overdraft different from a loan? +
What are some of the differences between an overdraft facility and a Merchant Overdraft facility? +
Is a letter of credit and Merchant Overdraft the same? +
How the repayment of the Merchant Overdraft works? Can a borrower repay it anytime he wants? +

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Our Charges

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Schedule of Charges

The below Schedule of Charges are applicable with effect from 01st August 2024

NATURE OF CHARGE/FEE

CHARGES

Processing Fee

Up to 2% of the Sanctioned Limit

Renewal Fee

Upto 2% of the Sanctioned Limit

Enhancement Fee

Up to 2% of the Sanctioned Limit

Expiry of Limits / Non-Renewal Charges / Non-perfection of asset / Covenant not complied with Sanctioned Conditions

Upto 24% per annum on the Utilised Limit for the period of non-compliance

Overdrawn Charges i.e. Charges Drawal in Excess of the Sanctioned Limit

Upto 24% per annum on the overdrawn amount in excess of the drawing power for the period of non-compliance

Commitment Charges

Upto 0.5% per annum on the Unutilized Portion of the Sanctioned Limit if the quarterly average utilization in a calendar quarter is 50% of limit or less

Pre-payment/Fore-closure Charges with own funds

Upto 3% of the Sanctioned Limit

Pre-payment/Fore-closure Charges in case if loan is taken over by other financial institutions (banks/NBFCs)

Up to 5% of the Sanctioned Limit

Mortgage Creation/ Release Charge

As per applicable state laws

Stamp Duty

As per applicable state laws

Credit Shield

As Applicable

Stock Insurance

As Applicable

Property Insurance

As Applicable

CERSAI Charges

Rs.50/- for Sanctioned Limit up to Rs.5 lakhs and

Rs.100/- for all other Sanctioned Limit

Cheque Bounce Charges

Rs.500/- per instance

Charges for providing photocopy of documents

Rs.500/-

Charges for providing physical Statement of Accounts/No due certificate - More than once in six months

Rs.500/-

Charges for providing physical Statement of Accounts/No due certificate - Once in six months

Nil

Documentation Charges

Rs. 2,580/-

* Good and Services Tax (GST) will be charged extra as per the applicable rates, on all the

charges and fees (Wherever GST is applicable)

Market Linked Benchmark (MLB): External Benchmark Rate is arrived based on Repo Rate published by RBI. Rate is published at https://rbi.org.in/home.aspx
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Blogs

Customers may receive calls from 044 7198 6600, as a part of transaction monitoring. Please save this number. Also kindly note that incoming call facility is not available in this number.

Always use the customer care numbers displayed on Bank's official website.

DO NOT use any other numbers since this may put you at risk of fraud.

Please be aware of prank and deceptive calls.

Bank will never ask for sensitive information like Card Number, OTP, Password, CVV etc.

This is to inform you that www.equitasbank.com is the only registered and original web portal of Equitas Small Finance Bank Limited and we do not have web portal in the name of www.equitasbank.co. Anybody accessing the same will be at their own risk and loss and Equitas Small Finance Bank shall not be held liable under any circumstances for any loss of claim suffered by anybody dealing with the said web portal.

©2024, Equitas Small Finance Bank Ltd.