Secured Over Draft (SOD)
SOD (Secured Overdraft) is a continuous credit limit allowed favoring business entity, individual, against financial obligations (FDR, and different Scheme Deposits of our Bank).
- This is a continuous loan.
- Continuous drawing and adjustment is possible.
- Any branch transaction is allowed.
- Validity of the limit may be one year or less. . It may be renewed for further period at the request of the customer but at bank's own discretion.
- Rate of interest: Usually based on the interest rate allowed to the underlying financial obligation.
Primary security: Lien on underlying financial obligations