Dukandar Overdraft (OD) Facility

Benefits of Dukandar Overdraft Facility
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• High overdraft limit - Dukandar Overdraft allows a credit facility of up to ₹10 Lakh.
• No collateral - You can avail of this facility without furnishing any asset as collateral.
• Interest charged - Unlike a loan, you don’t have to pay interest if you don’t utilise the overdraft facility.
• Zero commitment charges - No commitment charges are applicable on the unused overdraft amount. Pay as per use only!
• No stock statement required - Unlike other bank credits, you don’t need to furnish regular stock statements to the bank.
• Flexible auto-renewals - Opt out of the Dukandar Overdraft facility or let it continue as per your business needs.
• Minimum documentation - Apply for the Dukandar Overdraft scheme and get it approved through a digitised process and with minimal paperwork.
• You can get spot sanction free of cost.
  - You need to pay only 50 paisa per day interest per ₹1000* availed.

Dukandar Overdraft (OD) Facility
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Overdraft facility of up to ₹10 lakhs - Especially for Shopkeepers, Retailers, Kirana Stores and similar small businesses.

HDFC Bank MyBusiness offers the Dukandar Overdraft Facility to different kinds of businesses. If you are a shop owner, you can manage your working capital needs and your business growth and expansion plans with this facility. HDFC Bank MyBusiness provides easy loan facilities, digital solutions and business knowledge to its customers, thus ensuring that - Har business hoga kaamyab!

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Why choose Dukandar Overdraft Facility
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Small businesses get growth and expansion opportunities from time to time. They may also face a sudden cash crunch that puts pressure on their working capital. In these and similar situations, businesses could resort to expensive loans or fall into a debt trap with lenders and vendors. With the Dukandar Overdraft Facility, HDFC Bank offers small business owners an affordable and flexible credit facility backed by the bank’s trusted customer experience.

Eligibility criteria for the Dukandar Overdraft scheme

To avail of this convenient funding option, small businesses must fulfil a few simple eligibility requirements,

• Whether you are have an HDFC Bank account or any other bank's account; you can apply for Dukandar OD. The customer must submit the bank’s statement.
• Udyam Registration Certificate number - You must have a valid Udyam Registration Certificate number obtained through the Ministry of Micro, Small and Medium Enterprises
• Bank Statement - You must provide the bank statement for the previous 6 months
• Business legacy - Your business must have a minimum vintage of 3 years
  
  

*T&C Apply

Frequently Asked Questions

What is Dukandar Overdraft Facility?

The Dukandar Overdraft Facility is a flexible credit line that provides a business (traders/ shopkeepers/merchants) with access to funds when needed.

How does the Dukandar Overdraft Facility work?

The Overdraft Facility allows a business to draw funds from their credit line as needed, up to an agreed-upon limit. Interest is only charged on the amount borrowed and for the duration of the borrowing period. There is no EMI.

What is the eligibility criteria for the Dukandar Overdraft Facility?

At HDFC Bank, you can apply for the Dukandar Overdraft Facility by fulfilling very basic eligibility criteria. It is as follows:

• You must be a retailer, shopkeeper, wholesaler, trader
• You must be a proprietor or business partner in the business to apply.
• Your business must have been in operation for a minimum of three years.
• You must submit 12 months' bank statements of your personal and business bank account
  
  

What is the maximum amount that can be borrowed through the Dukandar Overdraft Facility?

The maximum amount eligibility is Rs 10 Lakhs. But the outstanding obligation at the time of loan sanction will be taken while doing the calculation.

How do I apply for the Dukandar Overdraft Facility?

Visit the website: www.hdfcbank.com/sme >> Select Product Type – ‘ Working Capital >> Select Product – ‘ Dukandar Overdraft upto Rs 10 Lakhs.

How long does it take to get approval for the Dukandar Overdraft Facility?

The approval process for the Dukandar Overdraft Facility may take a few minutes via online application from the website.

Can I use the funds from the Dukandar Overdraft Facility for any business expense?

Yes, you can use the funds from the Dukandar Overdraft Facility for any business expense, such as inventory purchases, payroll, or equipment upgrades. It should cover your working capital requirement.

What happens if I don't use the full amount of my credit line?

If you don't use the full amount of your credit line, you'll only be charged interest on the amount borrowed. You can still access the remaining credit line if you need it in the future till the limit validity.

What Is an Overdraft Fee?

An overdraft fee comprises a 2% PF at the time of Limit Utilisation. The stamp duty is as per the local government charges.  The GST as per the government of India levied rates will be charged on PF.

How Does Overdraft Protection Work?

Under overdraft protection, if a client’s checking account enters a negative balance, they will be able to access a predetermined loan provided by the bank and be charged a fee. In many cases, overdraft protection is used to prevent a check from bouncing, and the embarrassment that this may cause.

What Are the Pros and Cons of Overdrafts?

The pros of overdraft involve providing coverage when an account unexpectedly has insufficient funds, avoiding embarrassment and "returned check" charges from merchants or creditors. But it's important to weigh the costs. Overdraft protection often comes with a significant fee and interest which, if not paid off in a timely manner, can add an additional burden to the account holder.
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How can Overdraft Facility help your business?

You can avail of an Overdraft Facility for your business needs. Overdraft Facility can help you avail liquidity for working capital requirements when cash flows can’t meet the requirement.

What Is an Overdraft Fee? 

For cases limit amount more than Rs. 5 Lacs- 

An overdraft fee comprises a 2% PF at the time of Limit Utilisation. The stamp duty is as per the local government charges.  The GST as per the government of India levied rates will be charged on PF. 

For cases limit amount equal or less than Rs 5 Lacs- 

No PF is charged. The stamp duty is as per the local government charges.  The GST as per the government of India levied rates will be charged on PF.