Line of Credit Interest Calculator
Calculate daily interest charges on Indian bank overdraft (OD) facilities and personal credit lines.
How Bank Overdrafts & Credit Lines Work in India
Unlike personal loans where interest applies to the entire disbursed amount, an Overdraft (OD) or Drop-Line Credit facility charges interest only on the funds you actually draw, calculated on a daily closing balance basis.
Formula
Daily Interest = [ Amount Utilized × (Annual Rate / 100) ] / 365
Monthly Interest = Daily Interest × Days Utilized
Frequently Asked Questions
Do you pay interest on the unutilized credit limit?
No. Interest is charged only on the exact amount withdrawn and utilized, for the specific number of days it remains unpaid.
Are there annual renewal charges for overdraft accounts?
Yes. Indian commercial banks typically levy a 0.5% to 1% annual facility renewal or folio fee on OD lines.
Can collateral be pledged for a cheaper overdraft line?
Yes. Overdrafts against Fixed Deposits (OD against FD) or mutual funds carry interest rates just 1% to 2% above the underlying investment yield.
How does OD repayment work?
You can deposit funds into the account at any time to immediately reduce the principal balance and lower daily interest accrual.
Calculate in three steps
- 1Enter your valuesUse the fields above and check the units shown beside each input.
- 2Run the calculationSelect Calculate to refresh the result with your latest values.
- 3Review or shareCompare the result, reset the form, print it, or share this page.