Can I increase or decrease my overdraft limit against property?

Most banks or Non-banking Financial Companies (NBFCs) will allow customers to adjust their overdraft limit if they have property, such as a home, that can be used to secure the limit. To request an increase in your overdraft limit, you would start by contacting your bank or NBFCs and informing them you want to raise the amount. The loan provider will ask you to fill out an application providing details on your financial situation, income, debts, the property you want to use as collateral, and other factors.

The bank or NBFC will review your application and request an updated appraisal of the property's current market value. This allows them to evaluate if the property has enough equity to support lending you a higher overdraft amount. Provided the property appraises high enough to cover the requested higher limit and you meet the bank's or NBFC’s lending criteria, they can generally raise your overdraft limit to a certain percentage of the property's appraised value. This gives the loan provider adequate collateral while limiting its risk.

Lowering your existing overdraft limit is typically more straightforward. You can simply ask your loan provider to reduce your limit to a specific lower amount.

Though exact procedures vary by bank or NBFC, the overall process involves securing a higher limit against property value while lowering it.