PNB overdraft facility: Punjab National Bank is offering cheap loans to its customers on the basis of fixed deposits. Under overdraft, 25bps discount is being given in the interest rate.
PNB (Punjab National Bank), the second largest public sector bank, is offering overdraft facility to its customers at a discount interest rate. The bank has tweeted its information from its official Twitter handle. It says that in times of need remember Punjab National Bank. If you have a fixed deposit in the bank, then on the basis of that, the bank is offering 25 basis points or 0.25% discount in the interest rate.
There are some conditions to avail this facility. The first condition is that you have a fixed deposit in PNB. If you have an FD in the bank, then apply for it with the help of PNBOne App or Retail Internet Banking. In such a situation, customers will get the benefit of 0.25 percent discount in interest rate. This facility bank is giving its customers sitting at home.
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What is an overdraft facility?
Overdraft is a financial facility in which more money can be withdrawn than the amount available in the bank account. The bank sets its limit for all its customers. It depends on how his repayment history has been and especially how he is related to that bank. If someone uses this facility, he has to pay interest on extra money. Overall, it is not a loan, but it is the same as a loan.
No need to fill emi
Overdraft has a lower interest rate. The other advantage is that you have to pay interest only for the time you take money in overdraft, because the interest calculation is done on a daily basis. Overdraft does not require EMI filling. It depends on the customer how quickly he pays the extra amount. As the funds come to you, keep paying it.
Interest calculation on daily basis
Keep in mind that in the overdraft, there is a calculation of interest on a daily basis and all calculations are done at the end of the month. If there is a delay in paying interest in a given month, then the amount for that month is added to the principal. This is the reason why interest should be paid on time in this. Apart from this, there is also no pre-payment charge.