The Economic Times recently published an article that covers the home loan overdraft facility and its ramifications for customers. The article goes into great depth with regards to how to opt for the overdraft facility, how the overdraft facility works, why it may or may not be useful to you and its disadvantages as well. Given that home loans with the overdraft facilities typically have a higher interest rate, the article also explains how to conduct a cost benefit analysis and see for yourself if your savings are higher than the cost of the original loan.
One of the Principal Partners at Square Capital, Amit Prakash, explains in very simple terms how an overdraft facility is much like a current account with an overdraft where any excess money is treated as a prepayment against the loan as long as the money is parked in the account.
Learn everything there is to know about the overdraft facility by reading the article below.
Published by: The Economic Times Date: 28/05/2019