You can get overdraft facility up to two months of salary against zero balance in PNB
The loan has to be paid off in six months before another overdraft is approved
There is good news for salaried professionals as you can get a maximum of Rs 3 lakh overdraft facility against your zero balance account.
The country’s second largest PSU bank Punjab National Bank, or PNB, gives this facility to its customers. The offer is only for salaried persons, who are employed with Central/state governments, public sector undertakings, semi-government corporations, MNCs, reputed institutions, reputed corporates, and reputed educational institutions.
If these organisations open the salary account of their employees with PNB, they would be eligible for this facility.
Any person or primary account holder of the PNB Salary Account may avail overdraft up to a sum equal to the salary of the two preceding months. The rate of interest one has to pay on it is linked to the Repo Rate, which is the rate at which the Reserve Bank of India lends to commercial banks. PNB will charge Repo Rate-linked rate that is now at 6.80% + 3.70% per annum, or 10.50%.
It is close to the rate of interest on personal lean offered by almost all PSU and private banks. Only SBI gives Personal Loan at a rate of 9.6% per annum.
The overdraft limit would be sanctioned manually after completion of a physical application form and loan agreement, and would be fixed as per eligibility of the person.
Depending on gross monthly salary PNB divides salary accounts into four different categories — Silver (salary between Rs 10,000 to Rs 25,000) , Gold (Rs 25,001-75,000), Premium (Rs 75,001-150,000) and Platinum (Rs 1.5 lakh and above).
Therefore, in the silver category, the maximum overdraft limit is Rs 50,000 while in gold, the limit stands at Rs 1.5 lakh. In premium category, the overdraft limit is up to Rs 2.25 lakh. The limit for the platinum category account holders however, is calculated in a different manner. It is double the lowest salary in that bracket, or 2 X Rs 1.5 lakh, which is Rs 3 lakh.
The overdraft amount will have to be adjusted in six months and a second one will be approved only after the first loan has been extinguished.
Additionally, these salary account holders across all the variants will also get free personal accident insurance cover of Rs 20 lakh.