Dropline Overdraft Up to ₹1 Crore
A flexible, collateral-free credit limit for your working capital. Withdraw when you need, repay when cash comes in — and pay interest only on the amount you use.
Check Your Eligibility
Free eligibility check. No commitments, no fees.
Why MSMEs choose a dropline overdraft
Built for businesses whose cash needs go up and down — so you never pay for money sitting idle.
Pay Interest Only on Usage
Get a sanctioned limit, but pay interest only on the amount you actually withdraw — not the full limit. Idle money never costs you.
Withdraw & Repay Flexibly
Draw funds when suppliers need payment, repay when customer money comes in. Perfect for businesses with working capital cycles.
No Collateral Required
Your limit is approved on turnover, vintage, and banking history — no property pledge, no FDs blocked, no personal assets at risk.
How a dropline overdraft works
Think of it as a credit line that gradually retires itself — flexibility today, discipline built in.
Check Eligibility Now- You get a sanctioned credit limit — up to ₹1 Crore.
- Withdraw any amount within the limit, whenever you need it.
- Pay interest only on the amount utilized, not the full limit.
- Repay flexibly as cash comes in — withdraw again if needed.
- The limit reduces ('drops') gradually every month over the tenure, so your cost keeps falling.
Get your limit in three steps
From your phone, with our team assisting you at every stage.
Share basic business details
Tell us about your business on your phone in minutes — GST details, bank statements, and financials. No branch visits, and our team assists you on WhatsApp and phone.
Get matched with the right lender
We match your profile with the right lender from our network of 125+ banks and RBI-registered NBFCs and share an indicative offer with you.
Get your ready-to-use limit
Complete simple digital documentation and get your overdraft limit activated in 2–5 days — withdraw whenever you need it.
What businesses use it for
- Paying suppliers before customer payments arrive
- Buying inventory in bulk when prices are right
- Bridging seasonal dips in cash flow
- Covering payroll and operating costs in lean months
- Taking larger orders without cash stress
- A standby line for unexpected opportunities
Are you eligible?
- Annual turnover between ₹1 Crore and ₹50 Crore.
- Business running for 3+ years (proprietorship, partnership, or Pvt Ltd).
- Business is currently profitable.
- All industries welcome — except real estate, liquor, meat processing, arms & ammunition, and gambling.
- Available across Tier-1, Tier-2, and Tier-3 cities in India.
How it compares
See how a dropline overdraft compares with a term loan and a traditional bank overdraft.
| Factor | Dropline Overdraft | Term Loan | Bank OD / Cash Credit |
|---|---|---|---|
| Interest charged on | Only the amount used | Full loan amount | Amount used |
| Collateral | Not required | Not required (unsecured) | Usually required |
| Time to funds | 2–5 days | 2–5 days | 4–8 weeks |
| Withdrawals | Flexible, within limit | One-time lump sum | Flexible, within limit |
| Renewal hassle | None — fixed tenure | None | Annual renewal & review |
| Best for | Working capital cycles | Planned one-time investments | Businesses with collateral |
Need a lump sum for a planned investment?
An Unsecured Business Loan gives you the full amount upfront with fixed monthly EMIs — ideal for machinery, expansion, or inventory.
Frequently asked questions
What is a dropline overdraft?
A dropline overdraft gives you a sanctioned credit limit you can withdraw from as needed. You pay interest only on the amount utilized — not the full limit — and the limit reduces gradually every month over the tenure. It's ideal for managing working capital cycles.
Why does the limit 'drop' every month?
The sanctioned limit reduces by a fixed amount each month over the tenure — that's the 'dropline'. This gradually retires the facility, keeps your borrowing disciplined, and lowers your maximum possible interest cost over time.
How is it different from a bank overdraft or cash credit?
Bank ODs and cash credit limits usually require collateral and annual renewals with fresh paperwork. A dropline overdraft through Recur Club is collateral-free, set up digitally in days, and runs for a fixed tenure with no renewal hassle.
How much can I get and how fast?
Limits up to ₹1 Crore, typically activated within 2–5 days of applying. The exact limit depends on your turnover, profitability, and banking history.
Who is eligible?
Businesses with annual turnover between ₹1 Crore and ₹50 Crore, running for 3+ years, and currently profitable. Proprietorships, partnerships, and private limited companies are all welcome, across Tier-1, Tier-2, and Tier-3 cities.
What documents are needed?
Just the basics: KYC of the business and promoters, GST returns, last 12 months' bank statements, and financials. Everything is collected digitally — no branch visits required.
Working capital that works the way you do
Check your eligibility in minutes — free, with no commitments. Trusted by 2,000+ businesses and recommended by CAs and bankers across India.