{"id":9486,"date":"2020-05-13T11:30:30","date_gmt":"2020-05-13T11:30:30","guid":{"rendered":"\/blog\/?p=9486"},"modified":"2025-02-17T11:52:17","modified_gmt":"2025-02-17T06:22:17","slug":"difference-between-personal-loan-and-personal-loan-overdraft","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/blog\/personal-use-loan\/difference-between-personal-loan-and-personal-loan-overdraft\/","title":{"rendered":"Difference between Personal Loan and Personal Loan Overdraft"},"content":{"rendered":"\n<p>Are you in need of some quick cash but can&#8217;t decide on the kind of loan to go for? Banks and NBFCs cater to the needs of borrowers typically in two ways &#8211; personal loans&nbsp;and <a href=\"https:\/\/tata-blog.osian.dev\/personal-loan\/overdraft-loan.html\">personal loan overdraft<\/a> facilities. Unlike personal loans, wherein you&#8217;re liable to pay a fixed EMI every month, a personal loan overdraft facility is different. It requires you to pay interest only on the amount of money that you utilize and for the period for which you borrow it.&nbsp;<\/p>\n\n\n\n<p>Here&#8217;s how both are different from each other:&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>\n  &nbsp;\n  <\/td><td>   <strong>Personal Loan<\/strong>   <\/td><td><strong>   Personal Loan Overdraft   <\/strong><\/td><\/tr><tr><td>\n  Eligibility\n  <\/td><td><a href=\"https:\/\/tata-blog.osian.dev\/personal-loan\/eligibility-calculator.html\">Personal loan eligibility<\/a>\u00a0criteria for most   lenders is quite easy to fulfil. The applicant must be between the age of 22   and 58 years. Moreover, they should have work experience of at least one   year. Also, they must have a minimum monthly income of Rs. 15,000.   <\/td><td>To be eligible for an overdraft facility, one has to   be between the age of 22 and 58 years. They should have a minimum monthly   income of Rs. 35,000 with a work experience of more than two years.   Additionally, they should have been in the same job for at least six months.   <\/td><\/tr><tr><td>\n  Credit limit\n  <\/td><td>When you apply for personal loan, the lender agrees   upon a fixed amount to lend. Once the loan has been issued, the limit cannot   be changed.   <\/td><td>However, if you are availing the overdraft facility,   you can withdraw any amount of money as per your requirement.   <\/td><\/tr><tr><td>\n  Tenure\n  <\/td><td>The tenure of the loan is usually longer than that of   an overdraft loan. For example, it is around 12 &#8211; 72 months with Tata   Capital.   <\/td><td>The loan tenure is relatively shorter.&nbsp;   <\/td><\/tr><tr><td> Interest rates   <\/td><td>As soon as the lender issues the loan, the borrower   becomes liable to pay a fixed EMI based on the personal loan interest rates   agreed upon by the bank and the borrower.&nbsp;   <\/td><td>If the borrowers do not withdraw any money from the   bank, they do not have to pay any interest. &nbsp;&nbsp;   <\/td><\/tr><tr><td>\n  Prepayment charges\n  <\/td><td>\n  If a borrower decides to repay a loan before the end\n  of the tenure, prepayment charges are levied. This is an additional cost\n  borne by the borrower.\n  <\/td><td>No prepayment charges are levied on the borrower.   <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>An instant <a title=\"Personal Loan\" href=\"https:\/\/tata-blog.osian.dev\/personal-loan.html\">personal loan<\/a>&nbsp;can help you meet a lot of your planned expenses. However, it may fail to meet your unanticipated financial needs. On the other hand, overdraft loan facilities come with the convenience of flexible payback options.  <\/p>\n\n\n\n<p>Both offer different benefits and meet different requirements. Depending on your needs, you can opt for a personal loan or personal loan overdraft facility from Tata Capital and get access to quick money, flexible tenure, affordable <a href=\"https:\/\/tata-blog.osian.dev\/personal-loan\/rates-and-charges.html\">personal loan interest rates<\/a>, and <a href=\"https:\/\/tata-blog.osian.dev\/personal-loan\/overdraft-loan\/rates-and-charges.html\">personal loan overdraft interest rates<\/a>.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-button aligncenter\"><a class=\"wp-block-button__link has-vivid-cyan-blue-background-color has-background wp-element-button\" href=\"https:\/\/tata-blog.osian.dev\/online\/loans\/personal-loans\/apply-now-personal-loan#!\">Apply for a Personal Loan Now<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Are you in need of some quick cash but can&#8217;t decide on the kind of loan to go for? Banks and NBFCs cater to the needs of borrowers typically in two ways &#8211; personal loans and personal loan overdraft facility. <\/p>\n<p><a href=\"https:\/\/tata-blog.osian.dev\/blog\/personal-loan\/difference-between-personal-loan-and-personal-loan-overdraft\/\">Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":9487,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[24],"tags":[],"class_list":["post-9486","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-personal-use-loan"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.13 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Personal loan Vs Personal Loan Overdraft - Tata Capital Blog<\/title>\n<meta name=\"description\" content=\"In personal loans, you&#039;re liable to pay a fixed EMI monthly, a personal loan overdraft facility requires you to pay interest only on the amount you utilize for a tenure.\" \/>\n<meta name=\"robots\" content=\"noindex, nofollow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Personal loan Vs Personal Loan Overdraft - 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