Drop line Overdraft is a modern form of property loan which is granted to the applicant from 1 year-15 year of tenure. With the Drop line Overdraft, the applicant can withdraw the required money for different purposes and only the used amount is deducted as the borrowed loan. However, the interest is calculated on the overall loan amount, whether used or not. The loan is best suited for the business where there is a requirement of stock on an urgent basis. The loan can be availed on the basis of monthly, quarterly, half-yearly or yearly basis.
For getting eligible for the Drop line overdraft, the following criteria must be met:
- The person must be self-employed in any of the private limited corporate firms, or any recognized partnership firms.
- The applicant must possess a minimum turnover of Rs. 60 Lakhs.
- The person must possess a minimum experience of 3 years in job and 5 years in business.
- The business of the person must be making a genuine profit from the last 2 years.
- The minimum Annual Income (ITR) must be Rs.1.5 lakh per annum.
Some of the documents which are required to get eligible for Loan against Property are:
- Document proof for KYC such as Adhaar, PAN card, identity proof, Passport, etc.
- Document proof for the running business or self-employment with an Experience of minimum 5 years.
- 6 months prior bank statement proof
- The ITRs balance sheet, Audited finance, and profit and loss account for the last 2 years.
- ITR/ Trade license /Establishment /Sales Tax certificate as a Proof of continuation
- Other documents such as Sole Prop. Declaration or Certified Copy of Partnership Deed, certified a true copy of Memorandum &Director certified Articles of Association & original Board resolution.