Overdraft credit services
Overdraft credit services is a short-term credit issued by the Bank for efficient paying of payment documents at the lack or shortage of funds on the settlement/current account. This kind of service is a complimentary one to the cash-settlement service of corporate business (legal entities and individual entrepreneurs, not being a legal entity).
Overdraft is a negative balance (debit balance) on the client’s settlement/current account that can arise as a result of payments from the client’s account to the amount overdrawing the account balance. The overdraft can take place only within the transaction day. The red ink of the client’s account, arising at admitted overdraft is to be covered at expenses of crediting.
The Bank credits the client within the upper limit size of loan – overdraft limit. The overdraft limit is defined by agreement with the borrower according to the monthly earnings to his settlement account. Within the agreement term the bank charges off without acceptance the borrower settlement account without his notification and agreement within the account balance in the end of the transaction day as a repayment of credit. The Bank charges daily interest on debt for using the credit and writes it off without acceptance from the borrower settlement account monthly. Interest is calculated from the actual debt remainder of accumulated principal in the beginning of the transaction day, actual day’s number of using the loan and the actual number of the days in a year.
Overdraft credit services allows to perform timely settlements, when the costs temporarily overdue earnings to the settlement (current) account. This kind of crediting enables issue of renewable credits without extra documents preparation and reduces the credit interest up to 25-30% of basic rate of a credit agreement. The regular clients are offered the opportunities of credit without a pledge, flexible interest rates according to funds turnover under the overdraft agreement.
