Account is empty but still need Rs 10,000? Jan Dhan Yojana will help you

Many times there comes a time in life when the pocket is completely empty and suddenly there is a dire need of money. In such a situation, neither friends answer the phone nor relatives are of any help. If you ever get stuck in such a situation, your old ‘Jan Dhan Account’ can become your biggest support.

Sounds strange, right? Even if there is not a single penny in the account, how will the money be withdrawn from the bank? But it is true. Under Pradhan Mantri Jan Dhan Yojana (PMJDY), the common man gets a special facility which is called-Overdraft.

What is this ‘magical’ feature? understand in easy language

In general savings accounts we can withdraw only as much money as we have deposited. But in Jan Dhan account the bank gives you a small borrowing allowance. Suppose, your account balance is zero, still the bank may allow you to withdraw up to Rs 10,000. This is called overdraft.

It is just like a small, emergency loan for which you do not have to visit the bank again and again with papers.

Troublesome companion, but use it carefully

Its benefits are tremendous:

1. Instant Money: Be it a hospital emergency or household ration, when your pocket is empty then these 10 thousand rupees are no less than a boon.
2. No EMI: In this, there is no tension of paying the installment every month like a home loan. When you get money, deposit it in your account.
3. Free Insurance: The Rupay card that comes with this account also comes with an accidental insurance of Rs 2 lakh, which is a great protection for poor and middle class families.

But there is a catch here (caution required)

Now you will think why the bank is so kind? Remember, the bank is ‘loaning’ you this money, not giving it away for free.

• Interest will be charged: The bank will definitely charge you some interest on the Rs 10,000 you withdraw.
• CIBIL Score: If you do not deposit this money back, your credit score (CIBIL) may deteriorate and the bank will refuse to give you a loan in future.
• Not everyone gets: This facility is easily available to those accounts which are a little old and in which transactions have been done properly (like having Aadhar link etc.).