An overdraft from the Bank: conditions, advantages and disadvantages

Almost every person faced with the problem of lack of money to complete the purchase. In this situation, the ask for a loan from friends, relatives or to borrow money from the Bank for a very short period.

Definition

Overdraft – Loan, which Issued Bank for replenishment of the Account individuals. Its main difference from the consumer credit consists in the repeated resumption of the For the term of the contract. In addition, to repay the Loan should be at least once a month, and interest is charged on the full amount of the debt.

What you need to know the potential borrower?

Overdraft-this revolving line of credit. Subject to the timely repayment of debt to use can be an unlimited number of times. It is very convenient for customers who value My time and can't just issue a new Loan.

Such a loan is much cheaper than ‘money until paycheck”, which are now providing microfinance organization.

The Interest rate all the banks floating. It depends on the income of the client.

An Overdraft is not only formalized, but also technical. In the second case, a negative balance of Account may occur after you convert funds or, Withdrawal of cash through an ATM with a large amount of Commission. In case of a technical overdraft, the Bank provides 35 days to repay the debt. Otherwise, the client will be penalized.

In case of delay In receipt of the income on the card for any reason, the customer will be penalized in the form of a fee increase or decrease limit.

Lending institutions will charge a fee for Cashing of the funds through any ATM.

Some time at Belarusian banks introduced the practice to sell overdraft simultaneously with registration of the salary project. It may be a big surprise to many retired employees. Indeed, in the case of delay in transfer of income to the customer penalties will be applied.

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Features

An Overdraft is made only to existing customers of the credit institution. The funds are transferred to outdoor Account. Most often used for this purpose is a salary card. Updated with a Account twice a month, and the funds can be used unlimited number of times. The limit of funds determined by the Bank based on the income of the client. If own funds is not enough to make a purchase, it automatically connects service the overdraft. That is, the client will be able to pay my salary card, but in Account Borrowed funds.

Overdraft-this is the same loan on which interest is charged. That is, the client still Have to return the principal amount and the accrued Commission to the Bank. Unlike a conventional loan, repayment is made immediately after transfer of funds for Account, a Commission is charged for the use Money. If, for example, a client received a loan in the amount of 100 000 BYN, and used only 10 000 BYN, interest will accrue only on that amount until the debt will be paid.

Today we will talk about how to overdraft to “Bank”.

How to apply?

Apply for an overdraft from the “BBK” you can submit directly on the website of the credit institution in Eponymous section. To fill out a questionnaire for a loan through Internet banking, just go to the section "Additional services" menu "Account”. In M-banking corresponding menu item is in the section “Services”. to apply, please contact one of the branches of JSC «BBK”.

The Overdraft on salary card is based on the calculated limit. The latter depends on the level of monthly income and cannot exceed 200 penalty units. The application falls in the credit Department of the Bank at the place of opening the Account (maps).

The results of a preliminary decision of the client will inform the employees of the same Department with the help of SMS or Other selected. If the application is approved, the client will invite the office to provide original documents and signing the agreement.

Overdraft “BBK” draws In stock passport and certificate of income for the last two quarters.

Terms and Conditions

OJSC “BBK” loans for payroll cards provides for two programs, Different between limit, terms, and Commission:

1. With maturities every quarter. Overdraft “BBK” provides on-year in the amount of double monthly Income for the last six months. Interest rate = CP + 9 PP (01.11.16 – 29%). The term of the loan may not exceed the validity period of the card Account.

2. With maturities every six months. Overdraft “BBK” provides on-year rate of 400% the average Income for the last six months. Interest rate = CP + 10 PP (01.11.16 – 30%). The term of the loan may not exceed the validity period of the card Account. This service is not available to clients, the length of which is less than 1 year in last place.

Earlier, the Current program with monthly maturities from 01.08.16 was closed.

Potential Borrowers must comply with the following requirements:

• The number of physical persons or individual entrepreneurs;
• Have impeccable credit history in the past;
• To have Account in the Bank on which transactions in the last three months.

How to use overdraft “Bank”?

Having this service, the client will be able to pay for Account Borrowed funds with your card. The plastic holder itself determines when, in what Volume and on what to spend the overdraft. “BBK” interest accrues only on the actual amount owed. If the client completed the service, the But does not use it, then Commission it will not pay. The overdraft is activated automatically when the client pays Account, the amount of which exceeds the balance of own funds. Loan repayment is also done automatically after crediting of income on the Account.

Credit vs Overdraft

Essentially an overdraft is very similar to consumer credit, which is available on the card. The amount of the loan in both cases depends on the level of wages. However, the maximum amount of the loan is higher than the overdraft from “BBK”. Interest for cash withdrawal account-4%. Rates for the use of funds in both cases are the same. However, when loan interest is charged on the entire amount of the outstanding debt. Not Required the pledge or surety for overdraft “BBK”.

Customer Testimonials

The Main advantage is the ease of use. To realize the loan need to submit an application via the Internet. If the client already has a salary card, the inquiry on incomes are required. After a preliminaryconfirmation of the application, the Bank Manager will contact the customer to schedule the time and place of the meeting with the office staff. Already in the office of the credit institution to the client Provide the signature of the loan agreement. You can then use the overdraft to an unlimited number of times.

Repayment of debt is carried out automatically after replenishment Account. On the one hand, the client does not Have to find an ATM or terminal for payment of another installment. On the other hand, in the case of arrears Account will be blocked until full repayment of the loan. In addition, the Bank may apply other penalties in the form of lower limits and increase rates. The disadvantages of overdraft also include a small credit limit and a short contract period (3 to 12 months).

Other options

Having Considered in detail the conditions under which can be made into a “BBK” loans to map, explore other offers.

Bets on the market for the servicing of such loans is in the range of 33-48%. At the same time for consumer credit customers have to pay 34-42%.

The lowest rate offered by the Bank “Belad”. Loan “the Spare pennies” provided a Commission rate of 33%. For the use of the same product customers “Fransabank” and “Zepter the Bank’ pay 39%, “the Technobank” and “Priorbank” — 40%, “AP Bank”, “Bank of Moscow” — 42%. More than all overdraft Costs clients «VTB Bank” - 47%. At the same time, many financial institutions provide a grace period up to 10-30 Calendar Days for which the interest on the loan is accrued at the rate of 0.0001%.

Free Cashing means Account is provided only on cards “Peration”, “RRB-Bank”, “Bank of Moscow”. A similar operation in the “Zepter the Bank’ will be charged at the rate of 2.5%, “the Technobank” - 3-5 % depending on the tariff plan.

«Alfa Bank» a similar service is provided only to holders of salary cards. The amount limit is 300% of average monthly income. The interest rate increases with the term of the loan. When withdrawing funds from Account there is a 2% Commission.

“Belagroprombank” also offers its clients two programs to choose from. The first 90 days since the signing of the agreement, the overdraft is granted at 10% per annum. With 91 days starts to operate rate of 13%. The exceptions are the participants of the salary project and employees of agricultural enterprises. These customers overdraft is at 12.5%. Initial loan amount is limited to 5 000 BYN, Maximum 200 000 BYN. The application is considered within two days. The funds are transferred Map receives a monthly income from: salary, profit fromentrepreneurship, retirement.

“BBK” loans for card offers on the basis of income but in the “BSP-Sberbank” first overdraft you can get the maximum amount of 10 000 BYN at 16%. The application will be reviewed within two business days. To repay Loan in the year since the formation of debt. To obtain overdraft can not only citizens of RB, but stateless In stock a permanent source of income.

Conclusion

Overdraft-this is a good way to Borrowed funds in an emergency, but the use of This service to be very careful. Else it is better to activate only in case of emergency. Overdraft “addictive”. First, the client Takes Borrowed means ‘under important needs," and after Few months can not stop, because the limit is constantly increasing, but income is not enough for full repayment of the debt.