Hello,

Say if I consider opting for dropline Overdraft facility from HDFC for the total granted amount of 70L with interest percentage of 10.5% and the reduction limit every year is 13%. My questions are -

- From the approved amount, if I take 50L in the first year itself - how much I have to pay per month? Is it interest only I have to pay or principal amount too? Please clarify.
- Say as mentioned in point 1 above, I consider using 50L for straight four years, then how the above said 13% downsizing limit will work every year. Considering the situation in which, at the end of first two years, after downsizing, I will be left with total 52L and in which 50L, I am already utilizing. Then how this downsizing will work for third year and so on. Do I still have to pay downsizing amount myself or it goes just as I mentioned in point 1 above.

Thanks

K