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HDFC Bank Home Loan Overdraft Facility

Lower your home loan interest while keeping your surplus funds 100% accessible. The HDFC Overdraft Facility is a hybrid financial system that functions like a combined loan and savings account, allowing you to reduce your principal balance whenever you deposit extra money.

  • Deposit surplus funds to reduce interest burden.
  • Withdraw funds anytime for emergencies or needs.
  • Interest charged only on the utilized loan amount.
  • Potential savings of over ₹20 Lakhs in interest.
Enable Overdraft via MyLoans
Utilized RateLinked to RPLR
Limit Range₹50k - ₹10L
Liquidity100% Access

Key Features of the Overdraft Facility

Feature Category Operational Details
Interest CalculationComputed daily based on the actual utilized principal amount.
Loan Limit RangeTypically between ₹50,000 and ₹10 Lakhs.
Collateral / SecurityNo additional collateral required beyond the primary property.
MSME EligibilityFirms with 6+ years experience may qualify for up to ₹10 Lakhs.

Saving Impact: Regular vs Overdraft Loan

Comparison for an ₹80 Lakh loan showing how ₹10 Lakh surplus saves massive interest.

Parameter Regular Home Loan Loan with Overdraft
Effective Principal₹80,00,000₹70,00,000
Interest Paid₹86,62,206₹65,79,431
Monthly EMI₹69,426₹69,426
Total Payment₹1,66,62,206₹1,45,79,431

MyLoans Savings Audit

By maintaining a ₹10 Lakh surplus in your overdraft account, you save approximately ₹20,82,775 over the loan tenure. That's an average annual saving of ₹1,38,852 without increasing your EMI.

Top Benefits of Overdraft Mapping

Reduced Interest Liability

Every rupee you deposit into your linked account acts as a prepayment, directly slashing your interest costs from the very next day.

High Financial Liquidity

Unlike standard prepayments, your money isn't locked. You can withdraw your surplus funds instantly for any planned or unplanned expense.

Simplified Management

Combines your loan repayment and surplus savings into a single, efficient system, providing a clear view of your net liability at all times.

How to Use the Overdraft Calculator?

Step 1

Enter your total home loan amount and current interest rate.

Step 2

Add the average surplus funds you plan to maintain in the linked account.

Step 3

View your reduced interest, effective principal, and total savings instantly.

Applicable Charges & Fees

Charge Category Applicable Fee Details
Processing FeeUp to 1% of the loan amount (Minimums apply)
Interest RateLinked to HDFC's Retail Prime Lending Rate (RPLR)
Maintenance ChargesAs per standard HDFC Bank terms for overdraft accounts
Withdrawal FeeNIL (Access your own surplus funds for free)

Frequently Asked Questions

Does HDFC offer overdraft on home loans?
Yes, HDFC provides a flexible overdraft option that allows you to link your loan account with surplus funds to reduce principal and interest.
What is the overdraft limit?
The facility typically ranges between ₹50,000 and ₹10 Lakhs, depending on your eligibility profile and property value.
Is the overdraft facility beneficial?
It is highly beneficial for those with irregular income or surplus funds, as it offers the perfect balance of interest savings and liquidity.
What is the interest rate?
The interest rate is linked to HDFC's RPLR and is only charged on the actual amount utilized beyond your deposited surplus.

Optimize Your HDFC Loan with MyLoans

Why pay full interest when you have surplus funds? MyLoans experts can help you setup the HDFC Overdraft facility seamlessly. Experience 100% digital onboarding and guaranteed lowest rate mapping today.

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