How to apply for OD all banking sector

Overdraft is a new facility to customers for financial backup which allows customers to withdraw funds from a fixed line of credit. Repayment is also very easy and flexible. The customer will only pay for the amount which he has spent.

In layman terms overdraft is just like a personal loan but the customer will only pay for the amount which he has spent. For example, let’s say I took an overdraft of Rs1 lakh and I have only spent Rs20 thousand from that amount. Therefore I will only have to pay interest for Rs20 thousand not for 1 lakh so it allows customers for financial backup in case of emergencies. This is a hassle-free and fast way of financial backup.  In 24 to 48 hours amounts will be get credited to the customer's accounts. It has two tenures is 5 years or 7 years.

 

Eligibility Criteria

Eligibility criteria for OD are very lenient. Applicant’s age should be more than twenty-five years. If we talk about salary, the applicant’s salary should be more than or equal to 40.

thousand in metro cities and in tier 2 and tier 3 cities salary can considered up-to 30 thousands. Enquiry count for the last 1 year should not be more than 4. The company should be listed in Bajaj Finserve.  Applicants CIBIL score should be more than 700 points.

 

Documents Required to apply for OD 

Applying for OD doesn’t require lots of documents. List of the documents required for OD are as follows.

1. PAN card

2. Aadhar card

3. Three months latest bank statement

4. Three months salary slip

5. Passport size photograph

6. Current address proof(If the house is own aadhar card is fine, In the case of the tenant customer should update his aadhar card address. Otherwise electricity bill.

7. gas bill, postpaid mobile bill, passport, bank account, driving licence, voter id, wifi broadband airtel only, rent agreement).

 

Process

I am mentioning the internal process of the team and various stages of the loan file given below.

1. Documents shared to executive or branch

2. After documents verification executive will login(Executive has started the process on his end) the file.

3. Eligibility will be checked. Eligibility criteria is mentioned above

4.  Your file will go for underwriting.

5. After writing credit manager will check all the documents and financial status of the applicant like salary slip is genuine or not, Loan track record. If another loan is also going on what is the EMI of that loan. Is the applicant has paid all the EMI’s on time?

Based on the above details credit manager will decide how much money will be disbursed to the account of the applicant.

how to use Financial Calculation

 step 1: Open dilsecodie

step 2: Get Java Financial year Calculation code  .

step 3: Dynamic function can be used in any java class .

step 4 : https://dilsecodie.com/sourcecode/topic/Java/tutorial/Financial-year-code can check from URL

 Quaters = Math.floor(months / 3);

            Monthpayment = parseInt(amount) * ((Math.pow((1 + (intrest / 400)), ((months / 12) * 4))));

            Newpayment = monthpayment - amount * months;

It just improves your level of creativity.

For FD compound interest, practise and use the calculator steps, memorise by multiple practices. Do, do, again do…

When the period is in months,

Valuation for 100000 at 6.75% compounded quarterly, period 66 months.

Most of the financial institutions offer FD collocutor to their customers. But only a few stand out to be defined as the best FD calculator, which is a result of substantial investment in its design. Here are some things that can tell one if the calculator is a good one or not.

Saves time: The best FD calculator is the one which provides quick results to save the users time.

User-friendly: The FD calculator must be simple, user-friendly and should not incorporate all the technicalities involved in the calculation.

Accurate results: A good FD calculator must display accurate results within a second. It should display major parameters such as the invested principal, maturity amount, and the interest earned.

Fixed deposits are great investment instruments if you’re looking to earn steady returns at minimal risk. However, before opting for an FD scheme, you must conduct thorough research and calculate the returns offered by different banks. But calculating can be a cumbersome task, as most banks follow the compound interest formula, which is a bit complicated.

  Interest = ((principal * rate * days) / 36500)

 maturity = Math.round(parseFloat(principal) + parseFloat(Interest))

In a method what is called 'Reducing Balance Method', the interest is calculated on the outstanding principal balance each month. If you apply this method, the amount you have to pay (P+I) will be ₹11,708 [Principal instalment of ₹8333 (₹300,000/36 months) + Interest of ₹3375 for the first month on the outstanding at the beginning of the month (₹300,000)]. The same P+I at the end of the last (36th) month is ₹8427. Between the 1st and the 36th month, the P+I amount progressively changes by ₹3281 as the interest component gets reduced with each repayment of the P instalment.

In EMI, this variation in the amount payable each month is addressed. In EMI, the borrower pays the same amount each month. However, the total amount of interest paid over the term of the loan at a given interest rate and P would be the same under both methods. Under EMI, there is the predictability of cash flows for the lender as well as the borrower. For a borrower, each month under the EMI method, he does not have to figure out each month how much he has to pay to the lender. The borrower comes to know his EMI amount at the start of the loan term and remains the same till the last instalment.

When you take a loan for purchasing a property, or for any other purpose like a personal loan or home

loan, you will have to make monthly EMI payments to the bank. EMI is nothing but short for Equated

Monthly Instalment, which is an amount that you have to pay on a monthly basis to repay your loan

liability. Normally, banks calculate the EMI of a loan to find out how much money you have to pay on

a monthly basis; you can also do this calculation yourself with the help of a loan EMI calculator online.

If you want to know how much you’ll be paying per month, over the entire tenure of your loan, an online

In case Staff loans repayment method is different. We dont call it as EMI. Principal amount sanctioned is recovered first followed by recovery of accumulated interest. It is as follows

Total tenure is divided in the ratio 2:1. For Example if the tenure is 30 years it is divided into 240 months and 120 months

The principal amount sanctioned is divided by 240 (PED: Principal equally Divided) and recovered in the first 240 months. Suppose the loan amount is Rs48 lakhs, then an amount of Rs 20000 is recovered every month till the balance becomes ZERO

During this period interest is calculated on a Simple basis at 6.5% PA on reducing balance and allowed to accumulate without recovering it

After 240 months whatever interest is accumulated as above is divided by 120 and recovered in the next 120 months in equal instalments

No interest is charged from the 241st month meaning there is no interest on the accumulated interest.

An EMI calculator is an online system of calculating the exact amount you need to pay per month. Bajaj Auto Finance has a bike loan EMI calculator on their website's home page, which helps the buyers easily calculate their EMI and plan their payment according to their affordability.

There are lots of benefits when one uses a bike EMI calculator. Some of them are as follows -

It is pretty easy to use an EMI calculator and on top of this, the results will be accurate and fast. After the applicant puts in the variables needed, the results will be generated in a matter of milliseconds, which is much faster than the traditional pen and paper method. What is the takeaway here? Well, the loan applicant will be able to make up their mind quickly and decide whether they should proceed with the loan scheme that a certain lender is offering or not.

Another aspect that makes using an EMI calculator beneficial is the fact that the results will be specific to the loan type. For example, if an applicant is putting in details regarding a home loan scheme in a bike loan EMI calculator, the result won’t be generated. This is a great aspect that keeps instances of confusion at bay.

Another benefit is that the overall pre-application process gets shortened. With the right information at their hands, loan applicants can get a loan in no time.