This is an unsecured overdraft limit that is customised based on your needs and specific requirements. The facility gives an overdraft limit of up to 4 times the gross salary* for salaried individuals. This is a zero collateral overdraft which enables you to pay interest only on the utilised amount.
This is a unique home loan where up to 30% of the loan amount is disbursed as an overdraft and the balance 70% as a term loan. Excess funds lying in your Savings Account over a threshold are automatically transferred to the Overdraft Account to help you save on your home loan. If you have further surplus funds, they flow into term deposits of 180 days, thereby offering you better returns on your money. This account gives you the flexibility to withdraw funds at will and you pay interest only on the overdraft utilised. The interest charged on the term loan as well as the overdraft are considered expenses under section 24 of the Income Tax Act.
*The above features are extended by Kotak Securities Ltd, a Kotak Group Company