Do you know that you can get a quick loan against your salary? It is surprisingly less popular among salaried people.
The reason is because of its less popularity. Yet this loan is quite good for quick cash.
The facility is available to those who maintain a salary account with the State Bank of India.
Here is the catch…
The facility is available only to those people who have a Corporate Salary Package account with the Bank.
As per the variant of the account, the eligible amount will be given to customers.
So… What is a Corporate Salary Package account?
SBI prioritizes its customer based on their income criteria. If it’s a salaried account then these accounts will be covered under CSP accounts.
From state government organizations to the central government all the employees will fall under CSP.
It includes public sector undertaking bodies and universities, schools and colleges.
In extension to that, various other corporate giants are having tie-up arrangements with the bank to get the offer under the corporate salary package.
To know more about the CSP account please visit here.
Know all about Overdraft against SBI salary package account.
An overdraft facility can be availed in two ways. One is through the Branch channel and the other is through the Online channel.
It is a clean overdraft account in which banks set a credit limit on your salary account. You can use funds within the credit limit.
The drawing power will be reduced on a monthly basis till the limit becomes Zero.
The tenor or repayment will be 6 months. So, irrespective of the amount that you have availed, it needs to be settled in 6 months. The asking reducing drawing power will be higher if your application amount is high.
For example, if you have availed ₹ 1 lac as an overdraft against your CSP account, the monthly reducing DP would be ₹ 16666 which is pretty high. So, take utmost care while applying as once the limit is set it can not be unchanged.
Purpose of an Overdraft account.
The purpose of an overdraft loan against the salary is for quick fund requirements.
At certain times, we need quick cash to buy some household goods such as refrigerators, television, washing machine, oven, kitchen item etc. which can be fulfilled with the OD loan.
This loan is somewhat linked to a consumer loan in which you have to liquidate within a short period of time.
How to apply an OD against your salary?
You can apply online as well as offline.
To apply online, you need to have active internet banking with full rights.
For online applications, the menu goes like this.
| Steps | Process to follow |
|---|---|
| Step 1 | Login to SBI internet banking. |
| Step 2 | Select Services & Request found on the menu bar. |
| Step 3 | Select OD against CSP. |
Proceed further after selecting the above menu. You will get to know your eligible amount as per your account type.
Click on the confirm button.
An overdraft limit will be set in your account which can be used right away.
To apply offline, you need to visit the branch where you maintain your salary account. There is a simple application form you may require to fill in.
Along with the application, there are a few documents you need to submit. These are listed below
- A copy of your office Identity Card.
- Latest salary slip.
- An ID card with a PAN card. The ID card may be an Aadhaar card, Driver’s license, Voter ID, Passport etc.
Once you have submitted the application, it will be sanctioned in no time.
Whether you apply online or offline, its processing does not take much time.
Online if eligible approval is instant whereas when applied offline it may take a few minutes.
Besides document requirement is minimal.
How much do you get?
Limit sanction to you would be based on the type of CSP account that you have. It ranges from ₹ 40000 to ₹ 200000.
Just to simplify, here’s the chart.
| CSP variant | Eligible OD limit is upto 2 months of net monthly income subject to variant wise cap mentioned below. |
|---|---|
| Silver | ₹ 40000 |
| Gold | ₹ 75000 |
| Diamond | ₹ 150000 |
| Platinum | ₹ 200000 |
Online mode is available only for diamond and platinum variants of the Corporate Salary Package in which the eligible limit is capped at ₹ 75000 and ₹ 1 lac respectively.
Other eligible criteria of the online channels are worth noting. These as mentioned below
- There should be salary credit in the account for at least the past 6 months.
- The online OD facility is available only for those who are under the diamond or platinum category.
- The applicant should be below 54 years of age.
Conclusion
The overdraft against the SBI CSP account is good for quick fund requirements.
It does empower you to get the benefit out of future salary. Its short repayment option makes it easy to liquidation of OD limit.
One need not worry about its repayment as the salary account itself turns into an OD account in which limit reduction is set monthly.
The reduced drawing power of the account is adjusted to the salary credits.
Overall it is a good small loan for a salaried person.
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