2024 Author: Howard Calhoun | [email protected]. Last modified: 2024-01-17 18:37
Almost every person faced the problem of lack of money to make a purchase. In such a situation, you can ask for a loan from friends, relatives, or borrow money from a bank for a very short period.
Definition
Overdraft is a loan issued by a bank to replenish an individual's account. Its main difference from a consumer loan is that it can be renewed multiple times during the term of the contract. In addition, you need to repay the loan at least once a month, and interest is charged on the entire amount of the debt.
What a potential borrower needs to know?
Overdraft is a revolving line of credit. Subject to the timely repayment of the debt, the funds can be used an unlimited number of times. This is very convenient for clients who value their time and cannot apply for a new loan every time.
Such a loan is much cheaper than the "money before payday" that microfinance organizations provide today.
The interest rate in all banks is floating. It depends on the client's income level.
Overdraft is not only formal, but also technical. In the second case, a negative account balance may occur after the conversion of funds or cash withdrawal through an ATM with a large amount of commission. In the event of a technical overdraft, the bank provides 35 days to repay the debt. Otherwise, pen alties will be applied to the client.
In case of untimely receipt of income on the card for any reason, sanctions will be applied to the client in the form of an increase in commission or a decrease in the limit.
Credit institutions also charge a fee for withdrawing funds from any ATM.
For some time now, Belarusian banks have started the practice of selling overdrafts simultaneously with the execution of a salary project. This can come as a big surprise to many retired employees. Indeed, in case of a delay in the transfer of income, pen alties will be applied to the client.
Features
Overdraft is issued only to existing clients of a credit institution. Funds are transferred to an open account. Most often, a salary card is used for this purpose. Such an account is replenished twice a month, and funds can be used an unlimited number of times. The limit of funds is set by the bank based on the level of income of the client. If there is not enough own funds on the card to make a purchase, then the overdraft service is automatically activated. That is, the client will be able to pay for the purchase with his salary card, but at the expense of borrowed funds.
Overdraft is thisthe same loan on which interest is charged. That is, the client will still have to return the principal amount and the accrued commission to the bank. Unlike a conventional loan, the loan is repaid immediately after the funds are transferred to the account, and the commission is charged on the amount of money used. If, for example, a client received a loan in the amount of 100,000 BYN, but used only 10,000 BYN, then interest will be charged only on this amount until the debt is repaid.
Today we'll talk about how to get an overdraft at Belarusbank.
How to apply?
An application for an overdraft from Belarusbank can be submitted directly on the website of a credit institution in the section of the same name. To fill out an application for a loan through Internet banking, just go to the "Additional Services" section of the "Accounts" menu. In M-banking, the corresponding menu item is located in the "Services" section. You can also apply by contacting one of the branches of Belarusbank OJSC.
Overdraft on a salary card is provided based on the calculated limit. The latter depends on the level of monthly income and cannot exceed 200 basic units. The completed application goes to the credit department of the bank at the place where the account (card) was opened.
The employees of the same department will inform the client about the results of the preliminary decision via SMS or in another way chosen by him. If the application is approved, the client will be invited to the office to provide the originals of the declared documents and sign the contract.
Overdraft "Belarusbank"draws up in the presence of a passport and a certificate of income for the last two quarters.
Conditions
JSC "Belarusbank" provides loans to payroll cards under two programs that differ in limits, terms and commission:
1. Maturity once a quarter. Overdraft "Belarusbank" provides for a year in the amount of double monthly income for the last six months. Interest rate=SR + 9 p.p. (29% as of November 1, 2016). The term of the loan cannot exceed the term of the card account.
2. With a maturity of once every six months. Overdraft "Belarusbank" provides for a year in the amount of 400% of the average monthly income over the past six months. Interest rate=SR + 10 p.p. (30% as of 11/01/16). The term of the credit cannot exceed the term of the card account. This service is not available to customers with less than 1 year of service at their last job.
The previously existing program with a monthly repayment period from 08/01/16 was closed.
Potential borrowers must meet the following requirements:
- be listed as individuals or individual entrepreneurs;
- have a perfect credit history in the past;
- have a bank account with transactions in the last three months.
How to use the Belarusbank overdraft?
Having issued this service, the client will be able to pay bills with borrowed funds from his card. The plastic holder itself determines when, inhow much and on what to spend the overdraft. Belarusbank accrues interest only on the actual amount of the debt. If the client has issued the service, but does not use it, then he will not pay a commission. The overdraft is activated automatically when the client pays the bill, the amount of which exceeds the balance of his own funds. Repayment of the loan is also carried out automatically after the income is credited to the account.
Credit vs Overdraft
At its core, an overdraft is very similar to a consumer loan that is provided on cards. The loan amount in both cases depends on the salary level. However, the maximum loan amount is higher than for an overdraft from Belarusbank. Interest for cash withdrawals on the account - 4%. The rates for the use of funds are the same in both cases. However, when applying for a loan, interest is charged on the entire amount of the outstanding debt. No collateral or guarantee is required to apply for an overdraft at Belarusbank.
Customer Reviews
The main advantage should be called ease of use. To apply for a loan, you just need to apply online. If the client already has a salary card, then it is not necessary to provide a certificate of income. After preliminary confirmation of the application, the bank manager will contact the client to set the time and place of the meeting with the branch employee. Already at the office of the credit institution, the client will be provided with a loan agreement for signing. After that, it will be possible to use the overdraft an unlimited number of times.
Debt repayment is carried out automatically after replenishment of the account. On the one hand, the client does not have to look for an ATM or terminal to pay the next installment. On the other hand, in the event of an overdue debt, the account will be blocked until the loan is fully repaid. In addition, the bank may apply other pen alties in the form of lowering the limit and increasing the rate. The disadvantages of an overdraft also include a small credit limit and short terms of the contract (from 3 to 12 months).
Other options
Having examined in detail the conditions under which you can apply for loans on a card in Belarusbank, we will study other offers.
Market rates for servicing such loans fluctuate between 33-48%. At the same time, customers have to pay 34-42% for consumer loans.
The lowest rate on the market is offered by BelVED Bank. The loan "Spare pennies" provides for a commission of 33%. For using a similar product, clients of Fransabank and Zepter Bank pay 39%, Technobank and Priorbank - 40%, BNB-Bank, Bank Moscow - 42%. Overdraft is the most expensive for VTB Bank customers - 47%. At the same time, many financial institutions provide a grace period of 10-30 calendar days, during which interest on the loan is charged at a rate of 0.0001%.
Free withdrawal of funds from the account is provided only for the cards of MTBank, RRB-Bank, Bank Moscow. A similar operation in Zepter Bank is charged at the rate2.5%, in Technobank - 3-5% depending on the tariff plan.
Alfa-Bank provides a similar service only to payroll card holders. The amount of the limit is 300% of the average monthly income. The interest rate increases with the term of the loan. When withdrawing funds from the account, a fee of 2% is charged.
Amount | Number of days since the loan was issued | |||
BYN | 30 | 60 | 90 | 180 |
150 - 500 | 13.9% | |||
150 - 1200 | 15.9% | 24.9% | 29.9% |
"Belagroprombank" also offers its customers two programs to choose from. The first 90 days from the date of signing the overdraft agreement is provided at 10% per annum. From the 91st day, the rate of 13% begins to operate. Exceptions are participants of the salary project and employees of agricultural enterprises. Overdraft is provided to such clients at 12.5% per annum. The initial loan amount is limited to 5,000 BYN, and the maximum is 200,000 BYN. The application is considered within two days. Funds are transferred to the card, which receives monthly income: salary, profit from business activities, pension.
"Belarusbank" credits on the cardprovides based on the level of income, but in "BSP-Sberbank" the first overdraft can be obtained for a maximum amount of 10,000 BYN at 16%. The application is considered within two working days. You can repay the loan within a year from the moment the debt was formed. Not only citizens of the Republic of Belarus can get an overdraft, but also stateless persons with a permanent source of income.
Conclusion
Overdraft is a good way to get borrowed funds in an emergency, but you need to use this service very carefully. Even better, activate it only in case of emergency. Overdraft sucks. At first, the client takes a loan “for important needs”, and after a couple of months he can no longer stop, as the amount of the limit is constantly increasing, and the proceeds are not enough to fully repay the debt.
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