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Request Letter to Bank for Availing Overdraft (OD) Facility

In business, there may come a time when you would need money to meet some urgent expenses, but you may not have enough money availability in cash or credit balance in a bank account to make the payment for that. In that case, immediate monetary help from your bank would be very useful. However, getting immediate help from the bank is not at all an easy thing.

sample letter to bank requesting overdraft facility
Hence, you should in advance approach your bank and have a facility to enable you to withdraw money in excess of the available balance. An Overdraft (OD) facility from the bank enables you such privileges - you have to pay the interest of course.

You can request the bank in the following format or if the bank has a pre-printed form for lodging an application for OD facility then you should use that.


Date: ..................

(Name of the Authorised Person)
(Name of the Business establishment)
(Contact Number)

The Branch Manager
............... Bank
............... Branch

Sub.: Request for an Overdraft (OD) facility.

Dear Sir/Madam,

We are having a current account in your bank at ....... branch, bearing account number ................. As you know, we are a long-standing customer of your bank for the last ...years. Our monthly transaction (deposits / turnover) range between ..... to ....

In the course of business, whenever we have issued a cheque, we have been ensuring that such payments are honored without fail. We have a good track record in this regard; your goodself may kindly verify this from our account records with the bank.

We are now expanding the business into different segments of the market. We are seeing a rise in demand for our products and services among customers in various localities. To reach them, we would have to establish some new branches at certain places where the demand is very high.

We are carefully examining the market to not to risk any expenditure of capital in nature where the chances of good profitability is low. In addition to our regular funds realisation, we might need some money on certain occasions to meet the expenses on an urgent basis. In that situation, an overdraft facility from your bank would become highly useful. 

Therefore, we hereby kindly request you to allow us an overdraft facility of (amount). We are enclosing herewith an overview of the expansion plan along with the financial plan of expected turnover from that and expenses for the next .... months for your evaluation purpose. We are also willing to offer some of our high value assets to the tune of (amount in currency value) as a security against the overdraft facility.

We would highly appreciate cooperation from your bank in the growth of our business. We will remain committed in honoring the payments in due time. Appropriate fees and charges of approving the facility, if any, may be debited from our account. We are willing to bear the interest rates on the overdraft that may be levied from time to time.

Kindly consider this request on an urgent basis and please let us know about the sanction details of the overdraft facility at the earliest.

Thanking you,
Yours faithfully,

(Name of the Authorised person)
(Name of the Business establishment)

Encl.: A/a

Request Letter to Bank for Availing Overdraft (OD) Facility


  1. Shakshi Yadav16 June, 2018

    This is what I was looking for. Thanks for this very useful and well written format of the letter.

  2. Anjo Dizon Valatero27 July, 2018

    Thanks a lot for the format of the letter! Do you also have a format of follow up or representation letter in case the bank rejects to give the OD facility?

  3. Debashish Deka29 August, 2018

    By any chance do you also have format for writing a letter to bank about adding a guarantor for the overdraft facility?

  4. Chris Merenda22 September, 2018

    Thank you

  5. This was helpful. thank you

  6. thank you for this constructive article

  7. Thank you so much for a useful article


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