The overdraft amount is not disbursed into the customer’s account and will not reflect in their total available balance on Alfa. It is a credit line that is tagged to the account and can used when there are insufficient funds in the account.
Once applied the facility will be created for one year. Customer can dip into their line and utilize it up to their assigned limit. Once the overdraft amount is settled, the line will be available to use again.
Yes. However, customers can only use it when there are insufficient funds in their account.
When the customer is in Overdraft, their account balance on the Alfa app will be negative. Customers can also track their Overdraft via Alfa (Alfa > Loans > Overdraft > Overdraft Summary)
Interest rate is 35% per annum. However, interest is calculated on a daily basis on the utilized line amount ONLY.
g.: if a customer draws down Rs. 10,000 for a week, only Rs. 68 approx. will be charged
E.g.: if a customer does not use Overdraft he/she does not have to pay any amount
Overdraft amount is up to 50% of one’s salary amount. Maximum amount is Rs. 50,000.
