Dropline Overdraft is an overdraft facility where a fixed credit limit is granted and gradually reduces over time. This facility can be used to meet working capital requirements, and the overdraft can be repaid over a defined tenure. At the end of the term, the full amount is repaid, which is then considered a capital return to the enterprise.

The primary collateral for this facility is property—residential, commercial, or industrial. In addition, stock and debtor records can also be considered for security purposes.

There is no need for monthly stock statement submissions or dynamic drawing power calculations. Instead, annual stock updates are sufficient. Based on performance and requirements, the structure of this facility can also be revised or renewed in later years.