Most Russians know the concept of credit, which cannot be said about overdraft. This is a special service that banks provide to debit card holders. In some cases, connecting this option becomes an alternative to lending.
What is overdraft
This service is available both to individuals and legal entities. As a rule, banks open a credit overdraft to payroll card holders. This type of loan has a lot of advantages, if used correctly. Overdraft - what are these simple words? This is an opportunity to get the missing funds to make a payment or pay for a purchase. For example, a customer in a supermarket collected goods in excess of the balance on his plastic card, but the bank allows him to “go negative” and pay for everything.
Translated from English, the term overdraft means overspending. The option is provided only after signing the relevant agreement with the bank. As a rule, the limit for such a loan is small, as is the repayment term. Banks also provide customers with a grace period (grace) when interest on the use of borrowed funds is not charged (up to 30 days). After that, the debt increases at the rate of consumer credit. The limit is calculated individually for clients, depending on income and other things.
Overdraft for legal entities
This type of lending is very beneficial for enterprises that have entered into a revenue collection agreement with a financial institution. Overdraft for legal entities is an excess of the cash balance when performing expenditure operations. For example, a company urgently needs to transfer money for a new supply of equipment, and a certain amount is lacking in the current account. The bank adds funds to make a payment, and then deducts them back when the money is received - along with interest.
The service is provided at the request of the client by the bank in which the organization has an account. Overdraft lending helps legal entities maintain cash flow and pay bills on time. There are several types of this service:
- advance (for reliable customers);
- for collection (with the turnover of collected revenue of at least 75%).
If the holder of a salary or classic debit card spends all his money, going beyond the limits provided, an unauthorized cost overrun occurs. If the conditions are the same within the framework of the agreed loan, then for the technical overdraft you will have to pay interest increased several times. For example, with a simple overrun, the rate is 18-20%, and for unauthorized charges up to 45-60%. In this case, pay off the debt as soon as possible in order to avoid a fine.
An overdraft loan has a strict limit, however, unauthorized overspending may occur in the following cases:
- Payment with a ruble card for purchases in dollars or euros. When converting, the amount of overruns may exceed the limit.
- Unconfirmed transactions. The client paid with a card for one purchase, after which the financial institution debited funds for another transaction.
- Technical malfunction in the system.
The size of the allocation of funds may vary for each client, because the limit is set individually. The conditions are agreed upon upon execution of the contract, when the holder of the salary or debit card decides to enable this option. The overdraft limit is set after consideration of the application, depending on the income of the client and the turnover of funds on the card. For example, Sberbank of Russia provides individuals with an overrun of up to 30 thousand rubles at first, after which the limit may increase.
As a rule, financial institutions provide for overpayments for overpayments more than for consumer programs. What interest on the overdraft will be established depends on the tariffs of a particular bank. If you delay payment of the debt, then additional fees are charged. The approximate rate for this type of lending is 15-25%, depending on the financial institution. In addition, the overspending has a limited period of not more than 12 months.
What is an overdraft in a bank
Modern financial organizations offer the population a variety of types of loans to attract customers. Bank overdraft is an opportunity to spend more money than is in the account of an individual or company. Upon receipt of funds, debts and interest are written off. Each financial institution offers its own conditions. Overdraft salary and debit cards can be issued at Sberbank, VTB 24 and other major banks in the country.
When connecting the service, the lender sets a limit for overruns. It can be used an unlimited number of times, since the line is renewed constantly after the debt and interest are written off. If desired, the service can be turned off by submitting an appropriate application to a division of a financial institution.
What is an overdraft in Sberbank
This financial institution provides an opportunity for private clients and enterprises to spend money on current accounts when connecting the corresponding service. Due to this, with a shortage of days on the card, you can pay for the purchase, and the debt will be written off automatically when credited. The most attractive conditions are available to individuals and legal entities who have a large turnover of funds on cards and accounts.
You can connect such a loan in rubles, dollars, euros. There are differences in interest rates: 18% (national currency), 16% (foreign). Overdraft at Sberbank for individuals open with an average limit of 30 thousand rubles. The specific figures are calculated by a credit expert of a financial institution, analyzing the solvency of the client. It is important to pay off the debt no later than two months after its formation.
Overdraft VTB 24
All holders of salary and debit cards, which regularly receive income, can apply for this service. Overdraft VTB 24 is opened in the amount of at least 10-15 thousand rubles. The maximum size of the cost overrun is set individually, taking into account the solvency of the client. If an appropriate agreement was previously concluded, then the loan with an overrun will be allowed - with a tariffing of 20%. Technical or unauthorized - an undesirable phenomenon in which the bank charges 50% and commission for delay.
Overdraft Alfa Bank - conditions
This financial institution provides the opportunity to "go negative" to debit card holders and corporate clients with a good credit history. Quick clearance with a minimum package of securities is what Alfa Bank offers; overdrafts are opened for up to 6 million rubles (advance) and up to 10 million rubles (personal offers). The loan rate is calculated taking into account many factors and amounts to 13-14%. It is worth noting that the bank charges a commission of at least 10 thousand rubles (1% of the limit) for connecting the service.