Request Letter to the Bank for Increase in Overdraft OD Limit

An overdraft facility, also known as OD facility, is a type of short term loan facility that allows the customer to withdraw money from the bank more than the balance remaining in his account, up to a certain pre-approved limit.

It helps the customer to meet some urgent expenses required because of an emergency. Generally, banks allow their business customers such a facility. Interest is charged upon the amount overdrawn.

The customer can make a formal request to the bank to increase the overdraft limit for his account. Here is a sample of such an application.

TEMPLATE

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

From

(Name of the Account-holder)

(Registered Address)

(Telephone Number)

To

The Branch Manager

(Name of the Bank)

............ Branch

(Location)

Sub.: Enhancement of overdraft limit.

Dear Sir/Madam,

With reference to our current/savings account number ....................., we would like to formally request you for an enhancement of our overdraft limit from (amount i.e. existing approved limit) to (amount i.e. new limit as required).

Our (product) business is growing rapidly with an increase in number of customers and turnover. We are now planning to expand our customer base by making available a different range of products as demanded by the local customers from time to time. We also plan to cover new localities by opening two/three new branches.

Please find enclosed herewith a financial statement having details of growth in turnover and profit for your kind information and records.

We request your goodself to kindly consider our application for enhancement of overdraft limit. We shall be grateful for the continued support from the bank. If you have any questions, please feel free to contact me at (phone number).

Thanking you,

Yours faithfully,

    (Signature)

(Name of the Account-holder)

Encl: A/a.