Security

There are a wide variety of securities that banks will accept to sanction the overdraft facility. One point is that the securities and the details of applicability will vary across banks, depending upon what each bank has decided. Also, each borrower has to carefully look at what is applicable to them for the purpose of knowing the figure that they will get as the overdraft.

Some of the securities against which an overdraft is sanctioned include:

• Fixed deposits
• Government of India bonds
• Debt mutual funds
• Car
• Building
• Other fixed assets

Not every bank will provide the overdraft facility against all the assets and hence the exact details will have to be checked out to see how the benefits can be availed of. This will help in the entire process of raising funds for the required purpose.