OD Limit | Overdraft Limit
Overdraft limit in banking happens when money is withdrawn from a bank account and the available balance goes down to zero. In such situation, the account is considered to be overdrawn. If somehow there is a prior agreement with the account provider for an overdraft and the amount overdrawn is within the authorized overdraft limit then the interest is normally charged at a particular rate. If by any situation the negative balance exceeds the agreed terms and conditions then additional fees many be charged and there may be an imposition of higher interest rates.
In banking sector, there are various reasons for which overdraft may happen. Let’s highlight some of the most common reasons for an overdraft.
International loan- The account holder may sometimes be short of money and make an insufficient fund debt. In such situation, the person may accept the associated fees and covers the overdraft with the next deposit.
Unable to maintain an account register- It may often happen that the account holder fails to update his or her account register on a proper schedule. This failure is another reason for an overdraft.
ATM Overdraft- ATM does sometimes allow cash withdrawal despite the fact that there is an insufficient availability of funds. This happens automatically and the account holder may not be aware of the fact.
Temporary deposit hold- A deposit made to an account can be placed on hold by the bank. This issue may occur due to the Regulation CC or may be due to different individual bank policies.
Unexpected electronic withdrawals – At a certain point, the account holder may have authorized the electronic withdrawals by a business. This can only happen in good faith of both the parties of the electronic withdrawal in questions made legally possible by terms of the contract such as the initiation of a recurring service by following a trail period.
Merchant error- A merchant may improperly debit an account of the customer due to human error. For example, a customer may have authorized a different purchase amount which may have got posted to the account with a different rate. Over here the customer has the option to recover these funds through chargeback to the merchant.
Victimization- In this case, the account may be a target of identity theft. This may happen as a result of demand- draft, ATM card, Debit card fraud or skimming. This criminal act could cause a subsequent debt. The money or the cheques from an ATM deposit could also have been stolen or the envelope lost in such case the victim is often denied a remedy.
Intraday overdraft- A debt may occur in the customer’s account resulting in an overdraft which is then covered by a credit that posts to the account during the same business day. Whether this process actually results in overdraft fees depends on the account holder agreement of the bank.
There are various other ways through which the process of overdraft may take place. The above-mentioned points are the most common ones that take place quite often.
Requirement of a self-employed person in a public limited company
This is for the people who are either a director in a public limited company or in trading services. The basic requirements are
• An earning of at least Rs 60,000 per annum. If a person is looking for a standard amount of car price then it is at least 1, 50,000 per annum for midsized and premium cars.
• A minimum turnover of Rs 4, 50,000 per annum is needed.
• Office landline phone is a must.
In the recent years, car loans by banks are very popular in the market. People can easily buy their favourite car with the assistance of the bank loan. Over the years there have been various changes in the execution of car loans. There is a huge different between old method of giving loans and the new method.