Overdraft Interest Rate Calculator
Overdraft Interest Rate Calculator
An overdraft interest rate calculator is a financial facility offered by banks to help account holders withdraw money from their savings and current account. This can be applied even if the account balance is below the minimum required balance or zero. This limit is assigned to each customer depending on his credit score, repayment history, account value and others.
Overdraft facility is popular as a short-term cash loan facility that the customer can utilize at any point in time upto the assigned credit limit. However, this facility can be availed by paying the interest on the utilized credit amount.
The overdraft interest rate calculator is used to calculate the interest rate along with your EMI. The calculator calculates the interest rates by the average daily balance method. It is calculated based on the withdrawn amount.
For example, if a borrower has Rs. 2 lakhs in his/her bank account and withdraws Rs. 40,000 as overdraft, then the interest rate shall be charged on the withdrawn amount that is Rs. 40,000 as per the pre-defined interest rate or Annual Percentage Rate (APR).
How to use calculator
The dropline overdraft limit calculators are available online on various sites, even you can from the websites of your lender you will definitely get it. You can select the amount overdrawn, then number of days and rate of interest on the overdraft interest rate calculator. You also need to fill in the loan period.
Let,
Amount Overdrawn: ₹ 50000
Number of days: 24 Days
Rate of Interest: 24%
Loan Period: 15
Thus, you can get the results on your screen within seconds. The calculator makes your calculations easy and hassle-free.
