Decoding Dropline Overdraft: Your Ultimate Guide to L&T Finance SME Loans
Summary
TLDRThis video script introduces the dropline overdraft facility by Lant Finance, offering customers flexibility in loan utilization. Amit, a representative, explains the product's features, including a 10-year fixed period with monthly limits, prepayment options, and interest charged only on the utilized amount. He also details the process of calculating monthly limits, making part payments through self-help portals or NEFT/RTGS, and additional withdrawals. The script emphasizes ease of use and the benefit of managing cash flow effectively.
Takeaways
- 🏦 The 'Dropline Overdraft' facility is provided by Lant Finance to offer flexibility to customers in managing their loans.
- 💡 Interest is charged only on the amount utilized by the customer, not on the entire sanctioned amount.
- 📅 There is a fixed 10-year period for the dropline overdraft with monthly limits set at the time of disbursement.
- 🔄 Customers can make any number of prepayments or withdrawals up to the available limit without additional charges from Elant Finance.
- 💻 Monthly limits are reduced each month following the schedule provided at the time of disbursement.
- 📉 If the customer's utilization is less than the limit, the repayment amount will vary accordingly, reflecting the actual usage.
- 💰 The customer can deposit additional funds into the dropline overdraft at any time to reduce the outstanding balance and lower the interest charged.
- 🔢 The repayment for the next month is calculated based on the utilized limit, with interest paid only on that amount if it's less than the limit.
- 📝 For higher utilization than the dropline OD limit, the repayment includes both principal and interest amounts.
- 🖱️ Part payments can be made through the self-help portal or via NEFT/RTGS, with instructions provided for both methods.
- 📞 Customer care is available to assist with any issues, such as deposits not being reflected in the account.
Q & A
What is the dropline overdraft facility?
-The dropline overdraft facility is a product that allows customers to withdraw or prepay at their convenience, with interest charged only for the amount utilized, not the complete sanctioned amount.
What are the features of the dropline overdraft product?
-The features include a fixed 10-year period, monthly limits set at the time of disbursement, the ability to make any number of prepayments or withdrawals up to the available limit, and no charges for withdrawal or part payment by Elant Finance.
How are the monthly limits for the dropline overdraft calculated?
-The monthly limits are set at the time of disbursement and represent the maximum amount that can be utilized each month. These limits decrease each month as per the schedule provided at the time of disbursement.
If a customer doesn't use their entire limit, will the limits still be lowered each month?
-Yes, the limits will still be lowered each month regardless of whether the customer has utilized the full limit or not.
How is the repayment amount calculated each month for the dropline overdraft?
-The repayment amount varies based on the customer's usage. Interest is calculated daily on the utilized limit, and the principal is paid at the end of the month only if the utilization is higher than the limit.
Can a customer deposit money into their dropline overdraft facility?
-Yes, customers can deposit money into their dropline overdraft facility at any time, which will adjust against the outstanding principal, freeing up the utilization limit and reducing the interest charged.
How is the repayment for the next month calculated if the customer's utilization is less than the dropline OD limit for the month?
-If the utilized limit is less than the dropline OD limit for the month, the customer only needs to pay the interest on the limit utilized.
What happens if the customer's utilization is higher than the dropline OD limit?
-If the utilization is higher than the dropline OD limit, the repayment will include both the principal and interest amounts.
How can a customer make a part payment into their dropline overdraft account?
-Customers can make part payments through the self-help portal by entering their loan account number and OTP, or through NEFT or RTGS by adding a beneficiary in their bank for repayment through ECMS or virtual account.
What should a customer do if their deposits are not reflected in their account?
-If deposits are not reflected, the customer can contact the customer care center for assistance.
How can a customer make an additional withdrawal from their dropline overdraft account?
-Customers can use the self-help link, select 'SM loan', click on 'additional withdrawal', enter their loan account number and OTP, and then enter the withdrawal amount and submit.
Outlines
🏦 Introduction to Dropline Overdraft Facility
This paragraph introduces the Dropline Overdraft facility offered by the Lant Finance team. Amit, a representative from Lant Finance, explains the flexibility of the product to a customer who has recently received loan sanction. The customer learns about the ability to withdraw or prepay at will, with interest charged only on the utilized amount rather than the total sanctioned amount. Amit provides basic details about the product features, including a fixed 10-year period with monthly limits, no charges for withdrawals, and the potential for transaction charges by the payment gateway partner.
📈 Understanding Monthly Limits and Repayment Calculation
In this paragraph, the customer inquires about the calculation of monthly limits and the repayment process. Amit clarifies that monthly limits are set at disbursement and decrease each month regardless of utilization. He provides an example with a 25 lakh rupee loan over 48 months at a 15% interest rate, explaining how the installment and available balance change with each payment. The customer learns that if they don't use their limits, they will still be lowered monthly, but they will only be charged interest for the utilized limits. Amit also explains how to make part payments through the self-help portal and NEFT/RTGS, and how to handle additional withdrawals and deposits. The customer is assured that the repayment amount will vary based on usage, and the interest is calculated daily on the utilized limit. Finally, Amit addresses potential issues with deposit reflection and directs the customer to the customer care center for assistance.
Mindmap
Keywords
💡Dropline Overdraft
💡Loan Sanction
💡Prepayment
💡Interest
💡Monthly Limits
💡Disbursement
💡EMI (Equated Monthly Installment)
💡Part Payment
💡Self-Help Portal
💡NEFT/RTGS
💡Customer Care
Highlights
Introduction to the drop line overdraft facility provided by Lant Finance.
Explanation of how a customer can utilize the drop line overdraft for flexibility in loan utilization.
Interest is charged only for the amount utilized, not the complete sanctioned amount.
Features of the drop line overdraft product include a fixed 10-year period with monthly limits.
Any number of prepayments or withdrawals can be made up to the available limit each month.
The principal amount reduces with each EMI payment date.
No charges by Elant Finance for withdrawal or part payment.
Transaction charges may apply from the payment gateway partner.
Monthly limits are set at disbursement and decrease each month.
Example provided to illustrate how the drop line overdraft works with loan repayment.
Interest is calculated daily based on the utilized limit.
Repayment amount varies each month based on the customer's usage.
Depositing money into the drop line overdraft facility adjusts the balance and reduces interest.
Repayment for the next month is calculated based on the utilized limit.
Instructions on how to make part payments through the self-help portal.
Details on part payment through NEFT or RTGS.
Process for additional withdrawals using the self-help link.
Customer care support for issues with deposits not being reflected.
Transcripts
welcome to this video which explains the
drop line overdraft facility provided to
customers a customer walks into the ltf
office and meets the ltf representative
to solve his queries hello are you a
part of the lant finance team yes I am
my name is Amit how can I help you sir I
have just received a sanction for an
loan from Ln Finance I had a few
questions to ask you yes please tell me
sir I have received the sanction but I
may or may not use the entire amount
what should I do well don't you worry
sir we just have the right option for
you dropline overdraft dropline
overdraft what is it please tell me more
the dropline overdraft product allows
you to withdraw or prepay at your
convenience this adds to your
flexibility and interest is charged only
for the amount you have utilized and not
for the complete sanctioned
amount oh that's amazing can you tell me
more about this product certainly sir
let me give you some basic
[Music]
details so the dropline overdraft
product has many features some of them
are there is a fixed 10-year period with
monthly limits set at the time of
disbursement any number of prepayment or
withdrawals can be done to the extent of
the limit available the principal amount
reduces with each Emi date interest will
be paid only for the utilized
amount no charges will be taken by elant
Finance for withdrawal of or part
payment please note transaction charges
may be levered by the payment Gateway
partner wow this will allow me to manage
my cash flows well but how are the
monthly limits calculated sir the
monthly limits are set at the time of
disbursement these are the maximum
limits to which you can utilize your
account for a particular month and what
happens is after a month sir the maximum
limits for each month are lowered at
shown at the time of
disbursement I will be able to explain
you more with an
example let us assume that the loan
amount sanctioned is 25 lakh rupees for
a tenure of 48 months at a 15% interest
rate the disbursement date is 3rd
September
2023 and repayment P starts after a
month that is from 3rd October
2023 now the installment per month comes
out to be rupees
6957
6.87 this table explains the available
balance to you after each installment
payment this process Will Go On Till the
End of the tenure period now since this
product allows you to withdraw or
prepaid the amount at your convenience
you will be charged interest only for
the amount that has been
utilized if I don't use my limits will
they still be lowered yes sir these will
still be lowered each month but would I
not be charge interest only for the
limits I use absolutely sir the
repayment amount each month will vary
based on your usage the interest will be
calculated on each day based on the you
utilize limit and you will make payment
for the principal at the end of the
month only if your utilization is higher
than the limit please tell me more sir
let me give you more details in the
example of the loan that we are
discussing let's say that you used all
of your limit of rupees 25 lakhs in
September on 3rd October you will be
charged an installment of rupe
6957
6.87 where interest will be rupees
032 lakhs and principal will be 0.38
lakhs this will reduce your limit to
rupees 24.6 2
lakhs and what if I have rupes 10 lakhs
available on 4th October which I want to
deposit sure sir you can deposit this
money into your drop line overdraft
facility at any time the payment will be
adjusted against the balance principle
outstanding this will free up your
utiliz limit and the interest charged
will be
lower that is great but how is the
repayment for next month calculated sir
on 3rd November which is the next
repayment date in our example our system
will check if your utilized limit is
less than the drop line OD limit for the
month if yes then you pay only for the
interest on the limit utilized okay but
what if my utilization is higher than
the dropline OD limit sir in that case
the repayment is for both the principal
and interest amounts this seems logical
I pay for what I use but how do I make a
payment into my account that is very
easy sir there are two major modes of
part payments self-help portal and neft
or
rtgs let us understand part payment
through self-help portal use the given
link as shown on the screen and click on
part payment then enter your loan
account number that is
Lan and onetime password that is o OTP
that you will receive on your registered
mobile number next enter the amount for
part payment and click
submit after submitting the page will
redirect you to the payment
gway additional charges may be charged
by payment gway in certain modes of
payment that is debit card or credit
card or bank transfer
Etc next you will see a success message
along with all the details on the
screen let us now understand part
payment through
neft or rtgs
portal the first step is to login to
your bank
account next add a beneficiary in your
bank for repayment through ecms or
virtual account with the details as
mentioned on the
screen lastly the payment will be
reflected in your dropline OD
account this seems easy what if I need
money that is even more easier sir you
have to use this self-help
link once you click on the link a
selfhelp option screen will appear
select SM loan next click on additional
withdrawal then enter your loan account
number that is Lan and OTP that you will
receive on your registered mobile number
after that enter withdrawal amount and
click on submit click on the hyper link
to download revised repayment
schedule last last question what if my
deposits are not reflected no problem
sir you can contact the customer care
center and they will be able to help you
out thank you Amit for explaining this
product to me it will be very beneficial
for me that's
[Music]
great
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