Are you businessman? Consider secured dropline overdraft

Do you own a business of your own? Are you working in a long-term business firm for some time now? Every businessman understands the importance of having access to quick funds like business loans. A cash crunch in the business world is something every businessman has always faced with and avoid such a situation at all times.

If you are a business owner, you know the significance of having access to business loans to meet your financial requirements. This is where the dropline overdraft facility lends a helping hand. Businessmen who have current accounts with a good rate of transactions can take advantage of the secured dropline overdraft facility.

What is a secured dropline overdraft?

A secured dropline overdraft loan allows the borrower to take a loan by pledging his or her property as collateral. The general sum of the lent amount is 50% – 80% of your pledged property’s market value. The loan amount gets lowered to various intervals like quarterly, monthly or semi-annually. However, ownership of the pledged property still remains with the borrower when they take a secured dropline overdraft.

Benefits of a secured dropline overdraft

All individuals who run business always want to avoid a cash crunch during the peak seasons or when they have a new expansion plan in place. The dropline overdraft facility can be availed as an extension to your business loans. This will also make the business loan affordable as the interest will only be charged on the total amount used.

Some benefits of the secured dropline overdraft are explained below.

  • High loan amount – A droplineoverdraftloan can be availed in between 20 lacs and 100 crores depending on the value of the property pledged by the borrower.
  • Fast processing – At LoansJagat, your dropline overdraftloan will be processed within 6-7 business days.


To pass the eligibility criteria, certain documents are required.

Government ID’s

  • Application form with passport size photograph of the applicant and co-applicant.
  • PAN card
  • Identity proofs like Voter ID card, driving license, passport, and aadhaar card.
  • Address proofs like Voter ID, driving license, passport, telephone bill, electricity bill.
  • Ownership proof of residence and office

Financial documents

  • For self-employed individuals – Latest audited ITR and financials for the last 3 years, GST returns of the last 12 years and last 12 months bank statement.
  • For partnerships or private companies – Latest ITR and financials for the past 2 years, last 12 months bank account statement from the borrower’s main account, partnership deed for partnership firms, incorporation certificates from private companies, GST returns for last 12 months, etcetera.
  • Papers of property – Photocopy of newest sale deed of the borrower, photocopies of conveyance deed, photocopies of a property map, etcetera.

Prevent these mistakes

A secured dropline overdraftloan can be very efficient to manage all of your business funds because you’ll be only paying interest on the total amount used. However, a certain mistake can create problems in the way which are laid down below.

  1. Paperwork – You should always clearly depict how you are going to use the funds to the bank. The bank has a right to know your all intentions of borrowing the business loans. Always keep all important documents showing proof of income and property ready in hand.
  2. Credit rating – As a borrower, you must be well aware of your past credit history. Banks always run multiple background checks to ensure your creditworthiness. Only then they decide the principal amount and rate of interest for your business loansapplications.
  3. Financial standpoint – You should always apply for a secured dropline overdraftonly after proper calculation of your complete hold of assets and liabilities. This will help you ascertain how much principle loan amount with interest you can pay-off and if you can afford the EMI’s which will follow.
  4. Terms of agreement – It is the borrower’s responsibility to properly read all the terms of the agreement before signing of the document. The borrower should always have a clear understanding of all the EMI’s of the secured dropline overdraft loan they plan to take.

LoansJagat provides a quick and easy platform where one may provide the requirements and compare the features of the loan offered by over 40 banks and NBFCs to get the best price on thesecured dropline overdraft loans.

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