Application cum sanction letter for
Overdraft against Banks Fixed Deposits (ODFD)
Place:
IDFC Bank Limited; Date:
_____________
_____________
Dear Sir,
I/We request you IDFC Bank Limited (the Bank) to grant a loan of _____________
(Rupees_______________________________ ____________________________________ only) by way of Overdraft
Limit / Account at the interest rate of ______ p.a. with monthly/quarterly rest which will be paid by me/us on
demand/ in ____________ months from the date of disbursement. The facility will be secured against under
mentioned Fixed Deposits placed with your Branch at _____________________________ as security for all moneys
now owing or which shall at any time hereafter be owing from me / us in any manner what – so – ever solely or
jointly with others
Particulars of Fixed Deposit(s)
Fixed Deposit (FD) FD favoring Start Period Due Rate of Interest Principal
Account Nos Date Date on FD Amount
1. I /we hereby authorize you to convert foreign currency Fixed Deposits on due date(s) by applying IDFC Bank
TT buying rate ruling on that date and adjust the proceeds towards the relative Overdraft Account and
balance, if any, be paid to me / us. (Not applicable for domestic deposits).
2. The Overdraft limit/ Account is required for the purpose of ___________________________________
3. I / We offer the aforesaid Fixed Deposits as security for the above Overdraft limit/ Account. Please accept and
mark a lien thereon in favor of the Bank as security for repayment of the Overdraft Limit together with interest
and all other monies payable by me/ us to the Bank under the Overdraft Account.
4. The Fixed Deposits receipt/s (in physical form and/or in electronic form) duly discharged by me/ us in favor of
the Bank is / are being provided as security for repayment of the said Overdraft limit/ Account with interest
and all other monies payable by me/ us to the Bank under the Overdraft Account.
5. I / We declare and agree that said Fixed Deposits are free from encumbrances and are my / our sole property.
6. I/ we declare that my / our business is carried on for the benefit of HUF and the Karta of HUF is availing the
said Overdraft Limit/ Account for the benefit of HUF (only applicable to HUF Cases).
7. I / We authorize the Bank, to renew the Fixed Deposit(s), at its discretion, for such period the Bank may deem
fit and continue to hold it as security for the said Overdraft limit/ Account renewed from time to time.
8. I/ We agree that the tenure of the said Overdraft limit/ Account shall not exceed the date of maturity of the
Fixed Deposit/s/renewed Fixed Deposit/s. However, I/ we agree that the Bank has every right to
terminate/withdraw/discontinue the said Overdraft limit/ Account at any time without any reason and notice.
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9. I / We agree that interest shall be charged by Bank on the daily debit balances in the Overdraft limit/ Account
at the agreed rate, or at such rate/s as would be revised by the Bank from time to time with monthly rests. The
said interest shall be debited thereto on the last working day of the calendar month. The Bank will be at liberty
to change the mode of calculation of interest /periodicity of charging the interest without any reference to me
/us.
10. I/We irrevocably authorize the Bank to debit my / our SB/ CA / CC account No __________________ with the
Bank towards periodical interest, penal interest, charges and shortfall in margin.
11. In this connection, I / We promise to service the interest on my / our said Overdraft limit/ Account, at monthly
intervals. In case I / We fail to service the interest for 3 month the bank shall be at liberty to realize that said
Fixed Deposits prematurely to adjust the outstanding in my / our said Overdraft limit/ Account without any
reference, to me / us. After such adjustment, if any balance is payable by me / us, I/ we undertake to pay the
same immediately without prejudice to your right of lien / set off in respect of any other accounts with you
either individually , jointly or severally.
12. I / We hereby agree that in case of default or Overdraft limit/ Account is not repaid on demand, the Bank may
take all steps without any notice or reference to me / us, necessary to prematurely encash the Fixed Deposit
hereby offered or held at any time, appropriate the net amounts towards discharge of all my / our liabilities in
the overdraft account with the Bank. Should there be any shortfall, I / We hereby undertake to pay the same
along with interest at the rate specified in the sanction, on demand by the Bank without any demur and the
Bank may reserve its right to initiate appropriate proceedings against me / us for recovery of its dues from me
/ us.
13. I / We hereby agree that in case Bank prematurely closes Fixed Deposits to adjust the outstanding in my / our
said Overdraft limit/ Account at my / our request or at the liberty of Bank to clear any overdue in my / our
Overdraft limit/ Account, interest on such prematurely withdrawn deposits shall be payable as per norms of
the Bank applicable to such premature closures. However at the time of premature closure of such Fixed
Deposit, interest chargeable on Overdraft limit/ Account shall remain unchanged.
14. I/ We hereby undertake not to withdraw or close/pre-close or mark any lien/charge the Fixed Deposit/s until
the Overdraft Limit/ Account amount is adjusted / repaid fully along with interest and other monies payable by
me / us under Overdraft Limit/ Account.
15. I/ We agree that I/ we shall be liable to pay to the Bank interest on the amounts due under the said Overdraft
Limit/Account at the rate specified in the Sanction Letterat monthly/quarterly rests and mentioned therein or as
maybe intimated by the Bank in writing from time to time and I/we will not dispute the same.
16. I/ We agree that I/ we shall not change my / our constitution without the prior written permission of the Bank
and also agree to inform the Bank about any change in my / our constitution or status consequent upon my/
our death, birth, retirement, resignation etc. during the currency of the said Overdraft Limit/ Account.
17. I/ We, hereby agree and give consent for the disclosure by the Bank of all or any such information and data
relating to me / us; data / information relating to my / our obligation in any Banking facility granted / to be
granted to me / us by the Bank as a borrower / guarantor/ Fixed Deposit Holder, and in case of default, if any
committed and necessary, to disclose and furnish to Credit Information Bureau (India) Ltd. (CIBIL) and any
other agency authorized in this behalf by RBI.
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18. I / We undertake that CIBIL and any other agency so authorized may use, process the said information and
data, disclosed by the Bank, in the manner as deemed fit by them. They may also furnish for consideration
the proposed information and data or products thereof prepared by them, to banks / financial institutions and
other credit grantors or registered users, as may be specified by the RBI in this behalf.
19. The terms and conditions for the said Overdraft Account/Limit shall also be subject to the changes based on
guidelines / directives issued by the RBI to banks from time to time.
20. I/We agree that I / we are individually, jointly and severally liable to repay the said Overdraft Account/Limit with
interest and all other moneys payable by me/us under Overdraft Account/Limit.
21. I / We hereby agree, unless otherwise recalled earlier, the Overdraft now sanctioned, will be valid up to due
date of Fixed Deposits. I / We hereby agree to furnish request for renewal of facility at least 8 days prior to the
date of expiry.
22. I / We declare that the information and data furnished by me / us to the Bank are true and correct
23. I/We agree that all the terms and conditions shall be binding on my/our legal heirs/administrators/ nominee/
successors/executors. I / We hereby agree, unless otherwise recalled earlier, the The Overdraft Limit shall run
co-terminus with the fixed deposit and where it is not possible, automatic renewal clause should have been
activated for such fixed deposits and the deposit is cumulative in nature. I / We hereby agree to furnish
request for renewal of facility at least 8 days prior to the date of expiry.
24. I/We agree that making of this application shall not be construed as giving rise to any binding obligation on
the Bank to grant me/us the Overdraft Limit/Account, unless I/we, comply with the all the norms and other
terms and conditions prescribed by the Bank for availing such Overdraft Limit/Account.
25. I/We agree that the Bank shall have the right to cancel the Overdraft Limit/Account, if the Bank at any stage
finds that the same has been availed by me/us by furnishing false information or by making any
misrepresentation and in which case the same shall become immediately payable by me/us to the Bank
together with interest and all other monies payable by me/us under Overdraft Account/Limit.
26. I/We agree that the Bank shall have the sole and absolute discretion to amend or supplement any of the
Terms and Conditions herein stated by posting the same on its website: www.idfcbank.com I/We shall be
responsible for regularly reviewing the Terms and Conditions including amendments thereto pertains to this
limit as may be posted on the website and the notice so given shall be deemed to be effective against me/us
on the date of posting of the same on the website and I/we shall be deemed to have accepted the changed
Terms and Conditions. I/we hereby agree to abide by the Terms and Conditions in force and the changes
thereto in the Terms and Conditions from time to time relating to the Overdraft Limit/Account as
communicated and made available on the website.
27. I/we agree and acknowledge that any default by me/us under any credit facility agreement or arrangement
entered into by me/us with the Bank, any bank and/or financial institution/non-banking financial company
and/or other creditors, shall constitute an event of default under this Overdraft Limit/Account and vice-versa.
Where the Depositor himself/ herself / themselves request for Overdraft
Please grant me / us a Overdraft of ` _________________________ (Rupees________________________
____________________________________________________only) on my / our above mentioned Fixed Deposit /
Recurring Deposit.
(In case of Minor's Deposit)
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I declare that I am the father / mother of the Minor and the advance is required for the benefit of the minor for the
purpose mentioned above.
I shall represent the minor in all future transactions of any description in the above account till the said minor
attains majority. I shall fully indemnify the bank against any claim of the above minor for any withdrawal/transaction
made by me in his/her account.
Place
Date Signature of Depositor(s)
Where a Third Party other than the Depositor, request for Overdraft
Please grant me / us a Overdraft of ` _________________________ (Rupees________________________
__________________________________________only) interalia on the security of the above mentioned Fixed
Deposit / Recurring Deposit in the name of________________________________________________ who have
agreed to offer them as security for this overdraft requested by me/ us.
Place
Date Signature of Borrower(s)
Consent from the Depositor, where Third Party other than the Depositor, request for Overdraft
I / We ______________________________________________________________ request you to grant the above
mentioned Overdraft of ` ____________________ (Rupees_________________________________
__________________________________only) to Mr./ Ms / M/s___________________________________ on the
security of my / our above mentioned Fixed Deposit / Recurring Deposit with your Bank.
I/We agree that Interest / Tax deducted at source on Fixed deposits offered as security will continue to be accrued
/ deducted in the name of fixed deposit holder/s. I / We understand that notwithstanding the assignment / lien of
said Fixed Deposit/s for granting overdraft to borrower/s will continue to fulfill all taxation obligations as applicable
from time to time.
Place
Date Signature of Depositor(s)
