Bank overdraft

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Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2016 can a bank overdraft be taken more than the paid up capital of the company..

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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20 November 2016 Bank OD mainly depends on inventory and book debts less than 6 months may be property

Unnikrishnan B

Unnikrishnan B (Expert)
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21 November 2016 As for the banker it will provide the OD/CC facility based on the projected turnover .in companies act 2013 section 180 prescribes limit in it but it is apart from the temporary loans.
OD/CC are not long term loans as it has to be renewed every year.
So in my opinion you can avail OD/CC more than your paid up capital

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