Decoding Dropline Overdraft: Your Ultimate Guide to L&T Finance SME Loans

Summary

This 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.