Everything to Know About the Personal Loan Overdraft Facility

TABLE OF CONTENT

Introduction of Personal Loan Overdraft Facility:

A personal loan overdraft is a credit facility given to any pre-existing personal loan customers. The pre-existing customers can withdraw funds as per their sanctioned credit limit on the loan account. The lenders decide the interest to be paid and the amount to be sanctioned.

This lending rate is decided by considering a few factors like monthly income, cash flow transactions of the borrower and their credit profile of the customer. In a personal loan overdraft, the interest is charged on the amount availed and not on the entire amount. Due to this reason, it is preferred by people who take frequent loans or have regular cash crunches but have the bandwidth to repay these loans on time.

Features of Personal Loan Overdraft Facility

A personal loan overdraft has many features, some of which are as follows:

  1. Withdrawals can be made several times from the pre-sanctioned loan amount. These withdrawals on the pre-approved overdraft amount can also be done against a salary account or any bank account.

  2. The repayment can be at the person's (applicant) convenience. However, the maximum time that can be taken is 2 years, not beyond that.

  3. The overdraft amount is decided according to the customer (applicant) and the lender's existing relationship.

  4. The lender decides the tenure for the repayment. Sometimes the lender or the bank may extend the tenure if the relationship between the lender and the customer is healthy.

  5. Salaried as well as self-employed people can avail personal loan overdraft.

  6. The interest is charged only on the amount withdrawn or utilised.

  7. Personal loan overdraft is a type of short-term loan that can be used to meet immediate or urgent requirements.

  8. No preclosure charges are applicable on the overdraft loan.

  9. No extra collateral is required to avail of this overdraft, if it is pre-approved.

Benefits of Availing of Personal Loan Overdraft Facility

Besides meeting your immediate requirements, the personal loan overdraft has many more benefits. Some of them are as follows:

  1. Flexible:

    2. The person availing of this facility can withdraw only a partial amount of the overdraft loan available. The interest is charged only on the withdrawn amount, not the approved overdraft amount. For example - if the approved overdraft limit is Rs. 50,000 and the person avails only Rs 30,000. Interest will be charged only upon Rs 30,000 and not upon Rs. 50,000.

  2. The rate of interest:

    3. Personal loan overdraft is suited for people who have the bandwidth to repay the overdraft loan amount in a short period (maybe 3 or 4 months). This lending rate depends on the previous transaction history and a goodtrack record of the applicant. Any lender or bank will offer a competitive interest rate, provided the applicant has a good credit scoreand the relationship with the lender or bank is a healthy one.

  3. Instant and hassle-free cash:

    4. It helps an individual to meet an immediate cash crunch, which can either be a personal need or cash needed for an emergency. This overdraft facility can be availed against a saving account, pre-approved loan, fixed deposit or a salary account.

  4. No EMI (Equated Monthly Installment) option:

    5. An individual doesn't have to keep track of the monthly instalment. So there is no chance of missing out on EMI or a cheque bounce due to insufficient funds. The repayment is according to the convenience of the applicant. The repayment can be made either in a lump sum or in small amounts depending upon cash flow of the applicant.

Also Read: Best Ways to Pre-closure Charges for Personal Loan

Eligibility for Personal Loan Overdraft

The following criteria have to be met to be eligible for a personal loan overdraft:

  1. The person availing of this facility should be an Indian citizen.

  2. Should be a self-employed individual or a salaried person.

  3. Anyone above the age of 21 years is eligible for it

  4. People above 65 are not eligible to apply for a personal loan overdraft.

  5. The applicant should have availed of a previous loan with the lender.

  6. An advantage would be to have a good credit score. Although it is not needed for taking an overdraft on a personal loan.

  7. Apart from individuals, many firms are also eligible for personal loan overdrafts. Such firms can be Public Sector Firms, Limited Liability Partnerships, Proprietorship Firms and Public or Private Limited Entities.

  8. Giving the personal loan overdraft is entirely the lender's decision. The lender also decides the applicable rate. Both these things vary from lender to lender.

  9. Private/Public sector companies, Professionals, Salaried doctors, and Employees of State, Central and Local Governments are also eligible for personal loan overdrafts.

Documents Required for Personal Loan Overdraft

The documents required to avail of the personal loan overdraft are as follows:

For salaried individuals

  1. ID Proof - a copy of any of these (PAN card, Aadhaar card, Driving licence, Voter ID).
  2. Address Proof a copy of any of these (electricity bill, passport, gas connection receipt or gas bill, lease or rental agreement, landline bill).
  3. Bank statement for the last 6 months
  4. Signature Proof
  5. ITR/Form16
  6. Salary slip of last 3 months

For self-employed individuals

  1. Business proof
  2. Last 2 years ITR, along with profit and loss (P and L) account
  3. Balance sheet and last 2 years income computation
  4. Form 26 AS
  5. ITDS certificate (Form 16 A) OR Income tax challan for income tax declared.

Also Read:3 Tax Benefits Of Personal Loan

How to Apply for a Personal Loan Overdraft

Through online mode:

Step 1: Visit the lender's website.
Step 2: Fill in all the relevant details like personal, employment and financial.
Step 3: Select the loan amount that has been pre-approved.
Step 4: Select the tenure for the loan amount.
Step 5: Submit the required documents.
Step 6: Submit bank details like the name of the bank, bank account number, and IFSC code of the bank.
Step 7: Once approved per the lender's terms, it will be received within 24 hours in the bank whose details were submitted.

Through Offline mode

Personally visiting the lender's office and out out filing the form with the relevant details. Submit the necessary documents and a cancelled cheque to the lender and specify the amount and tenure. The loan will be deposited in the account within 24 hours.

How does the Personal Loan Overdraft Work?

Personal loan overdrafts are offered to an individual based on the balance in their savings account, their previous credit history and their association with the bank or the lender. They are also based on assets held by the person such as fixed deposits, property, bonds and shares etc. that can be kept as collateral.

Personal loan overdraft works just like a pre-approved loan. The amount of money needed can be removed from the account as and when required. The repayment is also at the borrower’s convenience, it can be repaid in part of in full. Once the repayment of this entire amount is done then the person can become eligible for another overdraft loan. If the amount availed is lesser than the sanctioned amount then the person can keep withdrawing till the sanctioned limit of the overdraft loan is reached.

The Overdraft Loan That can be Availed by Different Categories of People

The loan value is determined by the lender or the bank. Some banks offer an overdraft loan of up to Rs 1 crore. These are usually given to business corporations and professionals. Some of the amounts available to different categories of people are:

  1. If a person has fixed deposits, then the overdraft loan would be 75 to 80% of the fixed deposit amount.

  2. Against house property a person can get 40 to 50% of the value of the house property as an overdraft.

  3. Salaried individuals can get 2 to 3 times the monthly salary given as an overdraft.

  4. Businessmen with invoice receivables can get an overdraft of 90 % of the invoice value.

  5. An Insurance policy holder can get the surrender value of the insurance policy. As compared to fixed deposit the overdraft loan that can be given is more if overdraft is based on the insurance policy.

  6. If equities are kept as collateral then the overdraft is quite less as equities are linked to stock market.

The Various Types of Overdraft Loans

The overdraft comes in handy when a person is facing a cash crunch and is getting loans at an exorbitant interest rate. There are 2 types of overdraft loans - a secured overdraft and an unsecured overdraft.

Some of the ways of obtaining a secured overdraft loan are as follows:

  1. Overdraft loan for salaried people:

    2. To avail of this facility, the salaried person must have an account with that particular bank. This loan is also called a short-term lending facility. The overdraft limit maybe 2 or 3 times the annual salary. It, however, is different from one bank to the other.

  2. Overdraft against equities/ stocks:

    3. Stocks that a person buys can be used for taking an overdraft loan. There are better options for keeping it as collateral. The amount dispersed for overdraft loans is relatively less as the stocks/equities depend on the markets, which are quite volatile at times. The value of the stocks keeps changing.

  3. Overdraft loan against collateral:

    4. The Overdraft loans can be availed by pledging collateral. An asset like a property can be kept as collateral. This property will first be assessed and valued depending on the location, how many years old the property is and the conditions of the property etc. Only after that it will determined if it can be kept as collateral and the overdraft amount that the property owner is eligible for.

  4. Overdraft against fixed deposits and insurance policies:

    5. If a person holds a life insurance policy or has a fixed deposit, it becomes effortless to avail of the overdraft facility. The surrender value of the insurance policy determines the amount of overdraft loan that can be sanctioned to the person (who is the policyholder).

    The overdraft loan can be decided based on the fixed deposit amount, tenure, and maturity amount. In fixed deposits, the money is invested for a period, which gives guaranteed returns. Furthermore, the chances of having a good relationship with the lender increase when an investment is made.

On the other hand, unsecured overdraft loans are pre-approved overdraft loans. They may also be overdraft loans that do not require an individual to keep any collateral to avail of this facility.

Also Read: What Is The Salary Requirement For Personal Loan?

Difference Between Overdraft Loan and Term Loan

An individual who wants a loan should compare the features of a term loan and an overdraft loan. After this, they should decide which one to go with, depending upon the financial requirement.

  1. An overdraft loan is a line of credit. To avail of this loan, the borrower must have an existing loan with the lender. Whereas a Term loan is borrowed capital where the loan is sanctioned based on a few factors like salary, returning capability etc., these loans are for a fixed amount that has to pay in a stipulated time.

  2. Overdraft loans are flexible, not requiring EMIs (Equated Monthly Installments), and the tenure depends on the borrower. Whereas a Term loan is flexible, the borrower has a fixed tenure and must pay EMIs (Equated Monthly Installments).

  3. Overdraft loans are short-term credits. These loans can be taken for a maximum of 2 years. Whereas, Term loans can be short or long-term credits as the tenure of the loan varies between 1 to 15 years.

  4. The interest paid in the Overdraft loan facility is only on the amount availed. In comparison, the interest has to be paid on the entire loan amount in a Term loan.

  5. The interest for an Overdraft loan is calculated daily. Whereas in term loans, the interest is fixed every month. This interest on a term loan is adjustable.

  6. Overdraft loans depend significantly on the relationship between the lender and the borrower. The Overdraft loan facility may or may not charge a processing fee. At the same time, a one-time processing fee is applied on availing of a Term loan.

  7. Overdraft loans do not have any preclosure charges. In comparison, preclosure charges are applicable in Term loans. These are charged when the borrower intends to close the loan before the stipulated period.

  8. A pre-determined limit is fixed by the lender in case of Overdraft loans. Whereas in Term loans amount limit is not fixed, huge loans can also be sanctioned depending upon the borrower's transaction history.

  9. Overdraft loans help manage daily expenses. In comparison, a Term loan is usually taken for a significant purpose (like buying something that requires considerable capital).
Also Read:5 Questions To Ask Before Applying For A Personal Loan

Conclusion

The banks and lenders have discretion on giving overdrafts on personal loans. That is why a person wanting funds regularly due to a temporary cash crunch should have a healthy relationship with the lenders and the banks. This healthy relationship between the two will make it easier for the applicant to avail the overdraft amount and fulfil the eligibility criteria. The final decision regarding the personal loan overdraft is entirely in the hands of the lender or the bank. Overdraft loan is not commonly known to many people. An individual seeking personal overdraft loan must avail it only if the repayment of this loan is possible.

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FAQs – Frequently Asked Questions


  • What is a pre-approved personal loan overdraft ?

    A pre-approved personal loan overdraft is the maximum approved limit a borrower can avail of. The lender or the bank determines this pre-approved personal loan, keeping the borrower's previous track record in mind. The pre-approved personal overdraft can be availed at any time as and when required. The withdrawal amount is considered an overdraft that must be paid at the borrower's convenience. A maximum tenure can be 2 years.

  • Why should a person choose an overdraft instead of a loan ?

    Loans take a long time to get processed, and there is no guarantee that they will be approved and the amount that will be approved and sanctioned. If a person is facing a temporary cash crush and needs money immediately, and the amount is required for a short period of time, then an overdraft is a better option. It is easily disposed of and is a faster way of getting funds.

  • What is the most significant advantage of taking an overdraft ?

    There are many advantages of taking an overdraft, is that it is pre-approved. The amount can be withdrawn from the savings bank account even if the balance is deficient. The rate of interest charged depends on the overdraft loan amount taken and not on the entire overdraft loan amount that is approved.

  • Can anyone apply for an overdraft against their fixed deposit in the bank ?

    Yes, it can be done. The approval for an overdraft loan will also ta take a little time. It will require minimal documentation. The overdraft loan amount that will be sanctioned did less than the value of the fixed deposit. Usually, 90% of the personal loan overdraft can be availed on fixed deposits.

  • Can two people or more avail of a joint overdraft loan ?

    Yes, it can be availed jointly. The co-borrowers are equally responsible for the repayment of the overdraft loan.

 

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The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.

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This Website is controlled and operated from India and there is no representation that the Materials/information are appropriate or will be available for use in other locations. If you use this Website from outside the India, you are entirely responsible for compliance with all applicable local laws. There is no warranty or representation that a user in one region may obtain the facilities of this website in another region.

Information published on the Website may contain references or cross references to products, programs and facilities offered by ABC Companies/third parties that are not announced or available in your country. Such references do not imply that it is intended to announce such products, programs or facilities in your country. You may consult your local advisors for information regarding the products, programs and services that may be available to you.

In your use of the Website, you may enter correspondence with, purchase goods and/or facilities from, or participate in promotions of advertisers or members or sponsors of the web site, including those of ABC Companies. Unless otherwise stated, any such correspondence, advertisement, purchase or promotion, including the delivery of and the payment for goods and/or facilities, and any other term, condition, warranty or representation associated with such correspondence, purchase or promotion, is solely between you and the applicable ABC Companies and/or third parties.

You agree that Facilities Provider / ABC Companies has no liability, obligation or responsibility for any such correspondence, purchase or promotion between you and any other ABC Companies and/or third parties.

Third party websites

This Website may be linked to other websites (including those of ABC Companies) on the World Wide Web that are not under the control of or maintained by ABCL. Such links do not indicate any responsibility or endorsement on our part for the external website concerned, its contents or the links displayed on it. These links are provided only as a convenience, in order to help you find relevant websites, facilities and/or products that may be of interest to you, quickly and easily. It is your responsibility to decide whether any facilities and/or products available through any of these websites are suitable for your purposes. The Facilities Provider or ABCL is not responsible for the owners or operators of these websites or for any goods or facilities they supply or for the content of their websites and does not give or enter into any conditions, warranties or other terms or representations in relation to any of these or accept any liability in relation to any of these (including any liability arising out of any claim that the content of any external web site to which this web site includes a link infringes the intellectual property rights of any third party).

USE of APP

In case any facilities/services, access/dissemination of information or execution of transaction is done through use of any APP related to ABC Companies, the additional terms and conditions governing the Use of APP shall be applicable and to be read along these Terms of Use.

Postings and monitoring

The Facilities Provider or ABCL or ABC Companies does not routinely monitor your postings to the Website but reserves the right to do so if deemed necessary if it is related to the facilities offered on the web site and to comply with law. However, in our efforts to promote good citizenship within the internet community, if the Facilities Provider or ABCL or ABC Companies becomes aware of inappropriate use of the Website or any of its facilities, any information, opinions, advice or offers posted by any person or entity logged in to the Website or any of its associated sites is to be construed as public conversation only, and the Facilities Provider or ABC Companies shall not be liable or responsible for such public conversation. You agree that in such cases, we will respond in any way that, in our sole discretion, as deemed appropriate. You acknowledge that Facilities Provider or ABC Companies will have the right to report to law enforcement authorities any actions that may be considered illegal, as well as any information it receives of such illegal conduct. When requested, ABC Companies/Facilities Provider will co-operate fully with law enforcement agencies in any investigation of alleged illegal activity on the internet.

Submissions and unauthorized use of any Materials contained on this Website may violate copyright laws, trademark laws, the laws of privacy and publicity, certain communications statutes and regulations and other applicable laws and regulations. You alone are responsible for your actions or the actions of any person using your user name and/or password. As such, you shall indemnify and hold Facilities Provider, ABCL / ABC Companies and its officers, directors, employees, affiliates, agents, licensors, and business partners harmless from and against any and all loss, costs, damages, liabilities, and expenses (including attorneys' fees) incurred in relation to, arising from, or for the purpose of avoiding, any claim or demand from a third party that your use of the Website or the use of the Website by any person using your user name and/or password (including without limitation your participation in the posting areas or your submissions) violates any applicable law or regulation, or the rights of any third party.

We reserve the right to terminate access to this Website at any time and without notice. Further this limited license terminates automatically, without notice to you, if you breach any of these Terms of Use. Upon termination, you must immediately destroy any downloaded and printed Materials.

If you come across any breaches/violation or offensive material you must report to us at abc.secretarial@adityabirla.com

Use of Cookies

You agree and understand that the Website will automatically receive and collect certain anonymous information in standard usage logs through the Web server, including computer/computer resource-identification information obtained from "cookies" sent to your browser from a web server or other means as explained in the Privacy Policy.  

Facilities Changes and Discontinuation

The Website reserves the right to discontinue or suspend, temporarily or permanently, the facilities. You agree that the Facilities Provider/ ABC Companies will not be liable to you in any manner whatsoever for any modification or discontinuance of the facilities. The format and content of this Website may change at any time. We may suspend the operation of this Website for support or maintenance work, in order to update the content or for any other reason.

ABCL, ABC Companies, and its directors, employees, associates, or other representatives shall not be liable for any damages or injury, arising out of or in connection with the use, or non-use including non-availability of the Website and also for any consequential loss or any damages caused because of non-performance of the system due to a computer virus, system failure, corruption of data, delay in operation or transmission, communication line failure, or any other reason whatsoever. The Website will not be responsible for any liability arising out of delay in providing any information on the Website.

Compliance with the Law

You agree that you will not:

  • Use any robot, spider, scraper, deep link or other similar automated data gathering or extraction tools, programme, algorithm or methodology to access, acquire, copy or monitor the Website, or any portion of the Website.
  • Use or attempt to use any engine, software, tool, agent, or other device or mechanism (including without limitation, browsers, spiders, robots, avatars or intelligent agents) to navigate or search the Website, other than the search engines generally available by third party web browsers
  • Post or transmit any file which contains viruses, worms, Trojan horses or any other contaminating or destructive features, or that otherwise interferes with the proper working of the Website or the facilities.
  • Attempt to decipher, decompile, disassemble, or reverse engineer any of the software, comprising or in any way making up a part of the Website or the facilities.
  • You agree not to use the facilities for illegal purposes or for the transmission of material that is unlawful, harassing, libelous (untrue and damaging to others), invasive of another's privacy, abusive, threatening, or obscene, or that infringes the rights of others.

Restrictions on Commercial Use or Resale

Your right to use the facilities is personal to you; therefore, you agree not to resell or make any commercial use of the facilities. In addition, the Website welcomes your feedback as a user of the facilities. Any feedback you provide will become the confidential and proprietary information of the Website, and you agree that the Website may use in any manner and without limitation, all comments, suggestions, complaints, and other feedback you provide relating to the Website. The Website shall have a worldwide, royalty-free, non-exclusive, perpetual, and irrevocable right to use feedback for any purpose, including but not limited to incorporation of such feedback into the Website or other Website software or facilities.

No Endorsements

All product and facilities marks contained on or associated with the facilities that are not the Website marks are the trademarks of their respective owners. The Website would require you to respect the same. References to any such names, marks, products or facilities of third parties or hypertext links to third party sites or information does not imply the Website’s endorsement, sponsorship or recommendation of the third party, information, product or facilities.

Promotional Offers

You may receive from time to time, announcement about offers with intent to promote this Website and/or facilities/products of ABC Companies (“Promotional Offers”). The Promotional Offer(s) would always be governed by these Terms of Use plus certain additional terms and conditions, if any prescribed. The said additional terms and conditions, if prescribed, would be specific to the corresponding Promotional Offer only and shall prevail over these Terms of Use, to the extent they may be in conflict with these Terms of Use. The Website reserves the right to withdraw, discontinue, modify, extend and suspend the Promotional Offer(s) and the terms governing it, at its sole discretion.

Charges for use of Website

There are no charges or fees to be paid by you for use of this Website. However, you are responsible for all telephone access fees and/or internet service fees that may be assessed by your telephone and/or internet service provider. You further agree to pay additional charges, if any levied by Third Party Service Provider(s), for the facilities provided by them through the Website (Additional Charges).

No Endorsement

You are advised to be cautious when browsing on the internet and to use good judgment and discretion when obtaining information or transmitting information. From this Website, users may visit or be directed to third party web sites. The Website makes no effort to review the content of these web sites, nor is the Website or its licensors responsible for the validity, legality, copyright compliance, or decency of the content contained in these sites.

In addition, the Website does not endorse or control the content of any other user and is not responsible or liable for any content, even though it could be unlawful, harassing, libelous, privacy invading, abusive, threatening, harmful, vulgar, obscene or otherwise objectionable, or that it infringes or may infringe upon the intellectual property or other rights of another. You acknowledge that the Website does not pre-screen content, but that the Website will have the right (but not the obligation) in their sole discretion to refuse, edit, move or remove any content that is available via the facilities.

Electronic Communications

These Terms of Use and any notices or other communications regarding the Facilities may be provided to you electronically, and you agree to receive communications from the Website in electronic form. Electronic communications may be posted on the Website and/or delivered to your registered email address, mobile phones etc either by Facilities Provider or ABC Companies with whom the services are availed. All communications in electronic format will be considered to be in "writing". Your consent to receive communications electronically is valid until you revoke your consent by notifying of your decision to do so. If you revoke your consent to receive communications electronically, the Facilities Provider shall have the right to terminate the facilities.

Assignment

You shall not assign your rights and obligations under this Agreement to any other party. The Website may assign or delegate its rights and/or obligations under this Agreement to any other party in future, directly or indirectly, or to an affiliated or group company.

Legal Disclaimers

The information provided on or through the Website is for general guidance and information purposes only and they do not in any manner indicate any assurance or opinion of any manner whatsoever. Any information may be prone to shortcomings, defects or inaccuracies due to technical reasons. Certain information on Website may be on the basis of our own appraisal of the applicable facts, law and regulations in force at the date hereof.

The information (and opinions, if any) contained on the Website may have been obtained from public sources believed to be reliable and numerous factors may affect the information provided, which may or may not have been taken into account. The information provided may therefore vary (significantly) from information obtained from other sources or other market participants. Any reference to past performance in the information should not be taken as an indication of future performance. The information is dependent on various assumptions, individual preferences and other factors and thus, results or analyses cannot be construed to be entirely accurate and may not be suitable for all categories of users. Hence, they should not be solely relied on when making investment decisions. Your investment or financial decision shall always be at your own discretion and based on your independent research; and nothing contained on the Website or in any information would construe ABCL/ABC Companies or any of its employees/authorized representative as having been in any way involved in your decision making process. Any information and commentaries provided on the Website are not meant to be an endorsement or offering of any stock or investment advice.

Nothing contained herein is to be construed as a recommendation to use any product, process, equipment or formulation, in conflict with any patent, or otherwise and Facilities Provider / ABCL/ABC Companies makes no representation or warranty, express or implied that, the use thereof will not infringe any patent, or otherwise. Information on this Website sourced from experts or third party service providers, which may also include reference to any ABCL Affiliate. However, any such information shall not be construed to represent that they belong or represent or are endorsed by the views of the Facilities Provider or ABC Companies. Any information provided or sourced from ABCL Affiliate belongs to them. ABCL is an independent entity and such information from any ABCL Affiliate are not in any manner intended or to be construed as being endorsed by ABCL or Facilities Provider. The information does not constitute investment or financial advice or advice to buy or sell, or to endorse or solicitation to buy or sell any securities or other financial instrument for any reason whatsoever. Nothing on the Website or information is intended to constitute legal, tax or investment advice, or an opinion regarding the appropriateness of any investment or a solicitation of any type. Investment in the securities market and any financial instruments are inherently risky and you shall always assume complete and full responsibility for the outcomes of all the financial or investment decisions that you make, including but not limited to loss of capital. You are therefore advised to obtain your own applicable legal, accounting, tax or other professional advice or facilities before taking or considering an investment or financial decision.

No Solicitation

No Information at this Website shall constitute an invitation to invest in ABCL or any ABC Companies. These are meant for general information only or to meet statutory requirements or disclosures. ABCL or any of its employees are in no way liable for the use of the information by you, when making any decision or investing or trading through any investment vehicles or ABC Companies, or any other third party which may be engaged in offering of these services.

The information contained on this Website does not represent and should not be used to construe (i) the terms on which a new transaction would be entered into by ABCL or ABC Companies, (ii) the terms on which any existing transactions could be unwound by ABCL or ABC Companies, (iii) the calculation or estimate of an  amount that would be payable following an early termination of any past/existing transactions or (iv) the valuations given to any transactions by ABCL or ABC Companies in their books of account for financial reporting, credit or risk management purposes.

Statutory Disclosure

ABCL and ABC Companies are engaged in a broad spectrum of activities in the financial services sectors. You understand and acknowledge that Aditya Birla Money Limited (‘ABML’), Aditya Birla Finance Limited (‘ABFL’) and Aditya Birla Sun Life Asset Management Company Limited and trustees and sponsor of Aditya Birla Sun Life Mutual Fund (‘ABSLMF’) are group companies and ABML / ABFL also acts as a distributor of ABSLMF.  Any recommendation or reference of schemes of ABSLMF if any made or referred on the Website, the same is based on the standard evaluation and selection process, which would apply uniformly for all mutual fund schemes. You are free to choose the execution facilities in the manner deemed fit and proper and no commission will be paid by ABSLMF to ABML / ABFL if you choose to execute a transaction with ABSLMF on the Website, unless otherwise agreed by you and ABML/ABFL separately. Information about ABML/ABFL, its businesses and the details of commission structure receivable from asset management companies to ABML/ABFL, are also available on their respective Website.

Similarly Aditya Birla Money Insurance Advisory Services Limited and Aditya Birla Insurance Brokers Limited are insurance intermediaries and engaged in the distribution of Insurance Products and it may services may include products of Aditya Birla Sun Life Insurance Company Limited and Aditya Birla Health Insurance Company Limited. However there is no conflict on these services and commissions if any payable are in accordance of the extant regulations.

Force Majeure

The Facilities Provider, ABC Companies and any of its Third Party Service Providers shall not be liable for any delay or failure in performance resulting directly or indirectly from acts of nature, forces, or causes beyond their reasonable control, including, without limitation, Internet failures, computer equipment failures, telecommunication equipment failures, other equipment failures, electrical power failures, strikes, virus, other malicious computer code, hacking, labour disputes, riots, insurrections, civil disturbances, shortages of labour or materials, fires, flood, storms, explosions, acts of God, war, earthquake, governmental actions, orders of domestic or foreign courts or tribunals, non-performance of third parties, or loss of or fluctuations in heat, light, or air conditioning.

Indemnification

You agree to protect and fully compensate Facilities Provider, ABCL, ABC Companies, subsidiaries, licensors, suppliers and facilities providers, employees, officers and directors, from any and all third party claims, liability, damages, expenses and costs (including but not limited to reasonable attorneys fees) caused by or arising from your use of the facilities, your violation of the Terms of Use or your infringement, or infringement by any other user of your account, of any intellectual property or other right of anyone.

No Waiver

The Facilities Provider, ABC Companies or any of its third party service providers and processor bank/merchants etc. shall not be deemed to have waived any of its/their rights or remedies hereunder, unless such waiver is in writing. No delay or omission on the part of Facilities Providers and ABC Companies, in exercising any rights or remedies shall operate as a waiver of such rights or remedies or any other rights or remedies. A waiver on any one occasion shall not be construed as a bar or waiver of any rights or remedies on future occasions.

Exclusive Agreement

You agree that these Terms of Use are the complete and exclusive statement of agreement supersede any proposal or prior agreement, oral or written, and any other communications between you and the Facilities Provider and its Third Party Service Providers or processor bank/merchants relating to the subject matter of these Terms of Use. These Terms of Use, as the same may be amended from time to time, will prevail over any subsequent oral communications between you and the Website and/or the processor bank.

Termination

Either party can terminate this Agreement by notifying the other party in writing. Upon such termination You will not be able to use the facilities of this Website.

Governing Law and Jurisdiction

The Website specifically prohibits you from usage of any of its facilities in any countries or jurisdictions that do not corroborate to all stipulations of these Terms of Use. The Website is specifically for users in the territory of India. In case of any dispute, either judicial or quasi-judicial, the same will be subject to the laws of India, with the courts in Mumbai having exclusive jurisdiction.

These Terms and Conditions are governed by and to be interpreted in accordance with laws of India, without regard to the choice or conflicts of law provisions of any jurisdiction. You agree, in the event of any dispute arising in relation to these Terms and Conditions or any dispute arising in relation to the Website whether in contract or tort or otherwise, to submit to the jurisdiction of the courts located at Mumbai, India for the resolution of all such disputes.

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