A collateral Free Business Drop Line Overdraft (DLOD) is a collateral-free working capital facility where the sanctioned limit reduces (drops) over time as per a predefined schedule. It combines the flexibility of an overdraft with the discipline of a term loan.
It is a revolving credit line with a reducing limit. You can withdraw funds anytime within the limit, but the maximum limit decreases monthly/quarterly as per the agreed structure.
100% unsecured facility
Pay only on utilized amount
Gradually reduces liability
Withdraw & repay as per business needs
Based on business profile and banking history
Based on turnover & cash flow
Competitive (higher than secured OD)
12 to 48 months
Reduces periodically (monthly/quarterly)
Flexible (monthly interest payment)
It ensures continuous access to funds while gradually reducing debt, making it a smart and balanced financing solution.
