Belarus what is an overdraft loan. What is overdraft: what is it for and how to use it correctly
For using the overdraft, the client pays interest to the bank, as well as for the time of use borrowed money... It can also be withdrawn and, for the opportunity to use the service
Overdraft for individuals
Under this agreement, the term for the provision of borrowed funds does not exceed 6 months. After the opportunity to use the overdraft limit, the client is not obliged to master it immediately. It is more profitable to take funds as needed, since in this case the cost of paying interest is significantly reduced.An individual who has a bank account linked to a debit bank card can receive an overdraft. The presence of a credit card greatly simplifies the procedure for mastering credit limit... The interest rate on overdraft is significantly higher than on targeted loansbecause the lack of collateral increases the risk of loan defaults.
Terms of provision
The terms of overdraft provision in different banks may be different. The main thing is that the borrower has a sufficiently stable financial position and made the payment regularly.To obtain an overdraft, you need to write an application for a loan and fill out standard form personal data. You also need to have a document confirming citizenship - a passport and one more document ( driver's license, policy health insurance, international passport, etc.). You should also take a certificate from the place of work, which confirms the presence of income.
The borrower must be a citizen of Russia and reside in the territory served by the selected bank. Work and seniority can also become a prerequisite (some banks require 6 months or 1 year of work experience)
Terms of registration
The period of registration of an agreement to receive an overdraft is no more than 6 months. The amount of the loan provided is determined by the needs of the client and his ability to repay the loan. The limit is set by the bank, determining it based on the average monthly receipts that have come to the client's account over the past 3-6 months. When withdrawing funds, it decreases, and when credited, it is restored.Overdraft repayment
The borrower needs to make regular payments within the prescribed period, the amount of which is specified in loan agreement... Interest is accrued on the actual debt. In this case, funds can be withdrawn as needed within the established limit. As a rule, the overdraft is repaid automatically, for example, when the wages.If the salary, for any reason, was delayed by the employer and you do not have the opportunity to deposit funds, the bank will charge penalties and may reduce the overdraft limit.
Hello, friends!
We continue to improve ours with you financial literacy and at the same time improve your English. Today the foreign term “overdraft” is next in line. We will learn its meaning, learn to understand and not be afraid.
The number of users is growing every year bank cards... Among them are students, pensioners, and even children. Why? It's convenient, practical and safe compared to a wad of money or a pile of coins in your wallet. We are increasingly using bank cards to receive earned money, transfers, withdraw cash and pay for goods and services in stores and on the Internet.
Banks are trying to support our desire to use credit cards. After all, solvent clients are the main source of profit and the raison d'être of the financial and credit organization itself. Banks compete with each other, lure us with new banking products and make offers that are difficult to refuse.
We have already figured out the concept, types and conditions of use of debit and credit cards. We learned what, for example, cashback and overdraft are. It is on the latter that I want to dwell in more detail today. Not everyone likes to use a loan, but not everyone suspects that they can become a debtor to the bank even without borrowed money. How is this possible? Let's figure it out.
What does "overdraft" mean?
The foreign word "overdraft" (overdraft) in translation from English means "overspending", "overdraft". We see the familiar word credit, so we think that it refers only to those who like to live in debt. This is not entirely true. An ardent opponent of other people's money can also face an overdraft. Reading reviews of bank card holders, I was convinced of this. But first things first.
Overdraft is a short-term loan provided by a bank under a bank account agreement to cardholders (usually salary). For example, when you are missing own funds for the purchase of any product, the bank will gladly provide the missing amount. But under certain conditions, of course.
Civil Code Russian Federation (Article 850) indicates that if the bank makes payments from the client's account in the absence of money on it, then he thereby gives him a loan with all the ensuing consequences. The loan is issued for a specific period and is not free. This also applies to overdraft.
Hence, fair questions arise: "Do I need an overdraft?", "How to connect?" and "How is it extinguished?" The answers to them depend on its type and the bank providing this service.
Kinds
Distinguish:
- allowed,
- unauthorized (technical) overdraft.
Let's dwell on them in more detail.
Allowed overdraft
The authorized overdraft is connected upon the personal application of the cardholder. It is provided within the limit set by the bank and at a certain percentage. These conditions differ not only for different banks, but also for different clients of the same financial institution.
Overdraft limit - this is the amount that a bank client can have in case of a shortage of his own money on the account. Calculated for a specific person, based on the amount of funds that pass through his card, his credit history and some other factors.
Banks also vary in interest. For example, Sberbank has established the following:
- 20% within the cash limit,
- 40% - payment for late repayment,
- 40% - payment for exceeding the limit, but only for the amount of this excess.
Attention! Sberbank connects the overdraft service not to all cards, but only to debit (salary) cards. But, for example, if you are the owner of MIR Classic, MIR Gold, MIR Premium, then the overdraft limit is not provided. A complete list can be found on the bank's website.
In my article about I dwelled in more detail on the issues of tariffs, conditions for obtaining and using them. If you haven't read it yet, then catch up.
IN Tinkoff Bank the following conditions apply:
- The service is activated at the initiative of the bank and with the consent of the cardholder.
- If you borrowed no more than RUB 3,000 from the bank, then there will be no overdraft fee (subject to timely repayment within 25 days).
- If the loan amount is from 3,000 to 10,000 rubles, the bank will take 19 rubles. in a day.
- From 10,000 to 25,000 - 39 rubles. in a day.
- Over 25,000 - 59 rubles in a day.
- The penalty for late repayment is RUB 990.
These conditions are valid for debit cards, for credit cards only technical overdraft is possible.
Read about the terms of use and pitfalls in my article. It can be very helpful. Especially if you are on the way to choosing the best means of payment.
Unauthorized overdraft
An unauthorized or technical overdraft can occur even if you have never borrowed. And this often becomes an unpleasant surprise, which turns into not only the emergence of debt, but also the accrual of interest and penalties for non-repayment. To avoid this, you need to know the common causes of debt:
- Exchange difference. This case may arise when you pay with a ruble card abroad. Due to the peculiarities banking system Funds are debited from the account in a few days. If during this period the exchange rate has changed sharply, then you can go into the red if there is a lack of funds on the card.
- Payment of mandatory payments. For example, bank charges.
I will comment on this case with my example: once a year, in May, a service fee of 450 rubles is automatically debited from my card. I usually withdraw from the card all the money received on it. Result: in May, I went into minus by 450 rubles, that is, a technical overdraft began. - Bank technical error. For example, the amount credited twice or vice versa, the withdrawal of the same amount 2 times. The bank notices and corrects the mistake. But the client may not have money in the account, so again a minus.
Avoiding a technical overdraft is easy. He who is forewarned is armed. If we know about the potential to go into negative territory, then it is enough to keep a minimum supply of money on the card or constantly monitor the state of the account in order to pay off the debt on time. Banks often provide a grace period (usually a month) during which we can return the entire debt without interest.
Connection conditions
Let me remind you that overdraft is connected with the consent of the client. Sometimes this service is automatically entered into the bank account agreement. Therefore, I never tire of repeating that we carefully read all the documents and ask about all the ambiguities. There is a signature in the agreement, which means that we have agreed with all the requirements of the bank.
The conditions for connecting the overdraft service in banks are different, but here is an approximate list of documents that you may need:
- Connection request.
- Borrower's questionnaire on the bank's letterhead.
- The passport.
- Another identity document (for example, SNILS, TIN, driver's license).
- Certificate of income (not all banks require).
As you can see, the set of documents is minimal.
Since the bank agrees to share its money with us, it is quite understandable that it makes certain demands on potential borrowers. These may include:
- Availability permanent registration and living in an area served by a bank.
- The presence of a permanent place of work and work experience.
- The presence of an account through which funds are regularly transferred.
- Clean credit history.
That is why overdraft is actively connected to salary cards. Banks often call the client themselves and offer this service. It will be appropriate here to explain how a debit card differs from an overdraft card.
Remember! When paying with debit card you only manage your money. And not a penny more. If you have connected the overdraft service, you can borrow the missing amount from the bank. But this is no longer yours, but other people's money that must be returned.
Overdraft is a short-term loan. Its terms vary from 6 months to 1 year. During this time, you can lose or change your place of work, move, etc. Therefore, banks require periodically to renew the contract. So they reduce the risks of non-return of the money provided to you.
How overdraft works: differences from credit
This service works in the same way as any loan. I borrowed, which means that after some time it is necessary to return it and pay interest for the use of other people's funds.
Although overdraft is a kind of consumer loan, there are still differences between them.
Comparison options | Credit | Overdraft |
Loan terms | Different, depending on the creditworthiness of the borrower and the type of loan. | Only a short-term loan (in most cases up to 1 year). |
Credit amount | It is calculated after a thorough analysis of the borrower's solvency. Not only his monthly income is taken into account, but also the income of family members, property in property, etc. | It is calculated based on the monthly receipts of money to the card. |
Frequency of payments | Periodically (as a rule, once a month) during the entire loan term. | At the next receipt of money on the card, the full amount of the debt is immediately debited. |
Terms of issue | A set of documents confirming your solvency. Collateral and guarantors are often required. | The minimum set of standard documents. Without collateral and guarantors. Quick decision making about service activation. |
Terms of use | The entire requested amount is issued immediately, which is repaid in installments, depending on the terms of the contract. To renew the credit line, you must contact the bank again. | The loan is revolving as it is spent and repaid. |
Interest rate | Individual for different types loan, term and conditions of repayment, the borrower's solvency. | The same for all cardholders with an overdraft. Usually higher than on a loan. |
Receiving speed | It takes time, since the bank makes a decision only after analyzing the borrower's creditworthiness. | With a positive decision to activate the overdraft service, money can be used at any time of the day or night. |
Benefits of overdraft, or what it gives to a competent user
Traditionally, I will consider all the advantages and disadvantages of an overdraft card.
Benefits:
- This is a non-targeted loan, so you can spend it on anything.
- The amount is constantly renewed. No need to go to the bank and draw up new loan... The main thing is to pay off on time.
- No collateral or guarantors.
- Interest is calculated only on the amount that you borrowed, and not on the entire available limit. If you do not use overdraft at all, then no interest is charged.
- You can use the money at any time, regardless of the bank's opening hours.
- You can cancel the service at any time.
And, of course, disadvantages:
- With all the availability of money, one should not forget that this is a loan. Repayment is obligatory and inevitable.
- Interest is calculated daily, and the amount is paid off in one payment, automatically when money is credited to the account.
- We have to renegotiate the contract often (usually once a year).
- Credit limit (as a rule, does not exceed the monthly receipts on the account).
- High interest on the loan. The bank thus compensates for its risks.
- The ability to go into a technical overdraft without knowing it.
- The temptation is great to get carried away with readily available money and lose control over spending.
How to disable overdraft
To refuse this service, it is enough to write a statement about it. The agreement will be terminated if there is no debt to the bank.
Please note that if you change jobs, just throwing away salary card your previous employer. Contact the bank or check yourself if there is any debt. Otherwise, you can get an unpleasant surprise in the form of accrued interest and penalties for late repayment of debt.
Some banks practice the impossibility of disabling overdraft. This must be included in the contract. In this case, when concluding it, you can specify a zero limit on receiving money.
Conclusion
Everyone chooses for himself what money he will live on, his own or borrowed. You don't need to be afraid of overdraft, but you need to understand how to use it, so as not to drive yourself into debt hole... Keep your finger on the pulse of your finances at all times. Then you can afford a little more than you have at the moment. Agree, this is sometimes vital.
I would be glad if you supplement the article with your thoughts on this matter in the comments. Or maybe you have interesting stories from your life? They will give readers the experience they need and will be of invaluable help.
One of the options for obtaining a loan for a short time will be an overdraft. It will be credited to the current account of the debit card where salary, pension, or social assistance is calculated.
With this loan option, it will be possible to pay for various services and goods when the account does not have sufficient funds. The owner of this card will decide for himself when this money can be used and in what amount.
The main terms of a loan called overdraft
The main condition for this type of lending will be that no interest will be charged when the cardholder does not use them, despite the fact that it will be issued. All interest will be charged only for the real time of using such a loan. The overdraft will be repaid only when different income options arrive on the account.
In order to connect such a service, you will need to contact the bank branch where an agreement on the creation of a current account was previously concluded. Also, the client will need to re-submit identity documents, as well as a certificate of his income, standard sample.
Also, such a loan option can be obtained using a mobile offer, namely, at special information kiosks, or at, or by calling the service center using a combination of numbers 147.
Such a loan can also be issued as a special product called “free choice”.
In this case, it does not exceed half of the deposit amount.
Additional agreement on overdraft
A sample of such a variant of the contract can be found very easily on the website www.asb.by. This certificate is provided by Belarusbank. It acts as a public offer. The bank acts on the terms that will be indicated in the additional agreements prescribed in the agreement itself.
This is one of the most advantageous offers that the bank provides today. Credit funds are able to greatly facilitate the life of modern customers. This option will sometimes even be a life-saving option when there is no money in the account.
Many of us periodically face such a problem: there is not enough money on the card, but we really want to buy what is currently on the counter. If the long-awaited salary or advance payment is coming soon, then the simplest solution looks like a "loan" from friends, relatives or acquaintances. In fact, the lack of money before the salary can be eliminated without the help of friends - an overdraft will help you with this.
What is overdraft?
This is a loan issued by a bank to fund a personal bank account. natural person... Unlike, say, a consumer loan, an overdraft can be repeatedly renewed during the entire lending period, in addition, this loan must be repaid at least once a month, and interest is charged only on the actual debt on the loan.
Now let's try to decipher all of the above.
So, in any bank in your name an account was opened, to which the salary is received, and you have a plastic card with which you manage this money. This account is usually replenished twice a month (advance payment and salary), of course, you can withdraw money from the account an unlimited number of times, within the limits of the amount on it.
But it may happen that the funds on the account are not enough to make any necessary purchase, or maybe due to unforeseen circumstances you spent much more than you planned, and now you simply have nothing to live up to your salary.
If you find yourself in a similar situation, then you can contact the bank and arrange for an overdraft loan. Based on the size of your salary, the bank will set the amount within which you will be provided a loan. This amount is called the overdraft limit.
After opening an overdraft, in the event that the money on the account has run out, you will use the bank's funds within the overdraft limit. But since this is still a loan, firstly, it needs to be repaid, and secondly, interest must be paid.
The overdraft is repaid automatically after the money is credited to your account, and interest will not be calculated on the entire loan amount, but only on the part of it that you spent. That is, suppose that your limit is Br1,000,000, and you spent only Br10,000, it means that interest will be charged exactly on Br10,000 and only for the period until the loan is repaid.
Where to get it?
In most cases, to apply for an overdraft, you only need to write an application, show your passport and income statement (usually 3-6 months in advance). As for loan limits and maturities, each bank has its own characteristics.
IN Belarusbank There are three types of overdraft lending, which differ in the size of the limit, maturity and interest rate:
- from monthly period repayment - the limit is no more than the amount of average monthly income for the last 3 months, the interest rate on loans in Br - the refinancing rate of the National Bank (SR) + 6 pp. (as of 22.03.2010 - 19% per annum);
- with a maturity of 3 months - the limit is provided for a year and is up to 200% of the average monthly income for the last 6 months, the interest rate is СР + 6.5 p.p. (as of 22.03.2010 - 19.5% per annum);
- with a maturity of 6 months - the limit is provided for a year and is up to 400% of the average monthly income for the last 6 months, the interest rate is СР + 7 pp. (as of 22.03.2010 - 20% per annum).
BPS-Bank also provides three options for obtaining an overdraft:
- with a maturity of 3 months - the limit is up to 80% of the average monthly "net" income, the interest rate is СР + 5 pp. (as of 22.03.2010 - 18% per annum);
- with a maturity of 6 months - the limit is up to 200% of the average monthly "net" income, the interest rate is СР + 5.5 pp. (as of 22.03.2010 - 18.5% per annum);
- with a maturity of 12 months - the limit is up to 400% of the average monthly "net" income, the interest rate is СР + 6 pp. (as of 22.03.2010 - 19% per annum).
IN Belgazprombank the size of the limit will be determined by the bank on the following conditions:
- for employees of the enterprise - within 100% of the average monthly salary for the last 3 months, but no more than Br5,000,000, maturity - 3 months;
- for enterprise managers and their deputies - within 200% of the average monthly salary for the last 3 months, but no more than Br10,000,000, maturity - 6 months;
- interest rate СР + 5 p.p. (18% per annum).
If you are the owner of a plastic "salary" card Belagroprombank, you can get a loan for at least Br100,000 (maximum for the amount of your monthly salary) for up to a year and at an interest rate of 19% per annum.
Opening an overdraft in Priorbank, you can count on an amount equal to four average monthly salary (no more than Br5,000,000), which you will be given at an interest rate of 20% per annum for up to 1 year.
IN Paritetbank you can get an overdraft loan for a year at an interest rate of CP + 4 p.p. (as of 22.03.2010 - 17% per annum), while the amount of the limit will be calculated within the average monthly income.
Can take this loan and clients MTBankMoreover, if you receive a salary to a card account with this bank for more than 3 months, you do not need an income statement to open an overdraft. The limit is 150% of the average monthly salary, the loan term is up to 1 year. Interest rates vary depending on the term:
- 1–20 days (Grace period) - 0%;
- from 21 to 90 days - 12% per annum;
- from 91 to 180 days - 17% per annum;
- from 181 days or more - 19% per annum.
Overdraft from Alfa-Bank - this is an opportunity to get a loan in the amount of 90% or 200% of the average monthly salary for the last 6 months (no more than Br5,000,000) for a period of 90 days and 180 days inclusive.
IN BTA-Bank ready to provide an overdraft with a limit of up to 5 salaries at a rate of 24% per annum, and in Belinvestbank you can also get an amount of up to 5 salaries, but at 19% per annum. Belrosbank makes it possible to use an overdraft loan in the amount of up to the average monthly income (up to 2 times the average monthly income - for heads of organizations).
Is it profitable?
Considering the amounts provided by banks, maturities and interest rates of the overdraft, it is best to compare it with a “card” consumer loan. The loan amount in both cases will depend on your salary; however, when applying for a consumer loan, you can count on a more substantial loan. Interest rates on consumer loans are equal to or higher than on overdrafts, and they must be paid from the entire outstanding loan amount. It is also important that no collateral or surety is required to obtain an overdraft.
So, explicit advantages overdraft before consumer loans can be called:
- ease of receipt - to open an overdraft, you just need to visit the bank and provide a certificate of salary (not always necessary); in addition, some banks are ready to transfer money to the account in a few hours;
- interest accrual only on the actual debt, and not on the entire loan amount;
- automatic repayment;
- revolving - after the previous debt has been paid off, you can use the overdraft again.
TO cons overdraft credit can be attributed to:
- strict pegging of the overdraft limit to the salary, and, accordingly, not very large (compared to consumer loans) the amount;
- short maturities - from 3 months to a year;
- problems with repayment of the loan, which may arise in case of delay in payment of wages or a decrease in its size.
If for some reason you were unable to repay the overdraft, the bank will apply penalties to you, for example, reducing the limit, increasing interest rate or the termination of the overdraft loan.
Overdraft Belarusbank is a short-term loan that is issued banking institution and is suitable for card account holders. The overdraft loan can be used by those clients who have current accounts in Belarusbank. After you have learned what it is, you can safely apply for an overdraft at the bank for a different period.
It is beneficial for individuals to use overdraft, since it is accompanied by a favorable% and a period for which the client does not have time to fully get into debt. An individual limit is set on the Belarusbank card, which cannot be crossed and this will help to save personal funds.
Such a loan offer meets the needs of most clients - you can get money and use the amount reasonably within a limited framework.
Overdraft - what is it?
Overdraft refers to short-term credit products, which can be issued to holders of Belarusbank card or current accounts.
Access to the loan is provided in the presence of payment card with the constant crediting of various types of payments (this can be a Belarusbank salary card). The cardholder decides for himself how much and when to use a short-term loan.
Calculation example
Types of overdrafts for Belarusbank clients:
- With a maturity period at three months
- FROM a month repayment - the limit is set at 13.5%.
- Maturity within six months - provided at 13.5%.
Related videos:
Features of overdraft in Belarusbank
What is the difference between an overdraft and a full-fledged loan product? This type of loan is short-term, and the loan is issued for the n-amount of money that the borrower spends at his discretion.
You can issue an overdraft within the established limit and use the money only with a limit on the limit, unlike a regular loan. In conditions of short-term lending, it is more convenient to use it by connecting a salary or other account of Belarusbank.
How to get an overdraft for a card account holder? This is done by concluding an agreement with Belarusbank.
To do this, you must present:
- A valid passport.
- Statement of receipt of income on the card within three months or a direct certificate.
Alternative option registration - online application
Belarusbank makes full use of mobile banking, therefore customers have the opportunity connect a short-term loan to a salary card without queues.
Repayment is made in the usual way, therefore, no one will have any difficulties with this procedure.
Overdraft conditions in Belarusbank
If you have a Belarusbank card, then you can use it with maximum capabilities.
If necessary, you can apply for an overdraft at the nearest branch or using mobile banking.
A short-term loan is provided under a single program and is distinguished by a limit limit, which is calculated individually for each plastic holder.
Short-term lending conditions | Features: | Additional Notes |
---|---|---|
If the client does not use the overdraft, but has issued it, then the interest will not be charged | Not even a penny of credit should be spent | - |
The interest rate is charged only for the money actually spent | % depends on the period for which the loan is taken | Interest from 12.5 to 13.5% |
The repaid amount can be successfully used again | The purpose of the use of funds does not matter | - |
To successfully apply for an overdraft, you need to have active cards in ASB Belarusbank | Basically, the role of such payment cards is played by salary or pesion cards. | - |
Before applying for an overdraft, you must carefully read the agreement | Provision agreement credit money can be confirmed by certificates | |
You can also leave an application for registration by using M banking or an info kiosk | Additional agreement is not completed without visiting the client | - |
Borrower requirements
When registering a short-term loan, Belarusbank issues such requirements:
- A person who has turned 18 with a salary or social benefits.
- If registration is accompanied by "Free choice", then the amount cannot be higher than 50% from receipts.
- Interest is automatically accrued only for the used amount.
- The client must have stable receipts on the card.
- Short-term loan amount can be used again.
An overdraft is issued either at the branch or through use.
The main step in this procedure is the preparation of the application. The banking application provides a special section "Services" in which you can submit online application (when considering it, the staff of the institution will contact the client to clarify the details).
Contacting the department credit institution, need to take with you basic documents that will help you apply for an overdraft.
Pay attention to the list of required documents
Provided loan amount to credit card within a certain limit - depends on the marginal income for the month and cannot be more than 200 units. Short-term loans are issued only to users of Belarusbank, and the necessary funds are transferred to any open account.
How to use Belarusbank overdraft?
You can use overdraft as your personal funds, which are withdrawn from the card or spent on purchases. The holder decides for himself what should he spend the loan amount on... Money is provided according to a simplified scheme to an open account in domestic currency.
Schematic representation of receiving an overdraft
Besides the main credit rate there are no hidden interests, and compared to by credit card this product is more practical... A short-term loan is not always suitable for corporate clients, so ordinary cardholders use it.
How to repay a short-term loan? Repayment is carried out in accordance with the rules of the contract. total amount must be repaid before the onset of a specific date (you need to put on the card not only the money borrowed, but also the interest). The revolving credit line can be used again when it “goes to zero”.
They ask for an overdraft to make simple purchases and end with tuition fees. Conditions for the client are most suitable and depend on financial capacity personal account.
Advantages and disadvantages of overdraft
Analyzing the reviews, there are several advantages and disadvantages of overdraft. Many users call such a loan "a fly in the ointment and honey in one", as there are good features of the application, but the disadvantages also manifest themselves.
A loan is issued through bank transfer and refers to quick loans... It is convenient to use this banking offer on business trips or other unforeseen situationswhen you need to urgently use a specific amount.
Pros:
- % is charged only for the actual used Ʃ.
- Funds are automatically credited to the account.
- Can use repeatedly loan amount.
- Issued non-cash.
- Interest accrual and repayment happens quickly and without delay.
- Has no specific purpose.
Minuses:
- The limit is clearly tied to the salary.
- Small loan amounts.
- Short-term repayment.
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