1 point
35) Middleman is helpful to
remove the hindrance of *
O a. time
O b. place
O c. finance
O d. person
Answers
finance to remove hindrance
Explanation:
In case of an overdraft, interest is not charged until you actually withdraw the amount. Also, interest is charged only on the amount being used.
Topics
mint-india-wireOverdraft facility vs personal loanoverdraft facility for salary account customersoverdraft facility against FDoverdraft facilitypersonal loanpersonal loan interest rates
In order to make bank accounts under the Pradhan Mantri Jan Dhan Yojana, called the Jan Dhan accounts, more attractive, the government recently announced that their overdraft facility will be doubled from ₹ 5,000 to ₹ 10,000. While most people know about personal loans and credit cards, few are aware about an overdraft facility.
What is it?
The overdraft, when availed, is a short-term loan. The facility allows account holders to make withdrawals from an existing savings bank account even after the balance reaches zero. In other words, if you have an approved overdraft limit of ₹ 50,000 and have ₹ 1 lakh in your account at present, you can withdraw up to ₹ 1.5 lakh.
Some banks offer overdraft facility to salary account customers, based on the employer as well as individual credit profile, or to customers with a sound credit profile. Banks also provide overdraft on a collateral like a fixed deposit. In case of an FD-backed overdraft, the approved limit is lower than the FD value and the interest rate is higher than the FD rate. It is also available against home loans.