Overdraft uses a huge number of peopleLet not all of them know that this is the name. In essence, the overdraft limit is the sum of funds, determined, among other things, by regular receipts to the client’s account. For example, payroll, transfer of other earned funds from one account to another, receiving regular payments of a different plan and other options for receiving money. It should be remembered that some banks require for the execution of an overdraft to provide documents confirming the fact of the legality of receiving funds of a potential borrower. If this point is to be avoided, you need to inquire in advance about the existence of such a requirement and proceed from the information received: issue it here or change the bank.
Overdraft
This is a certain type of short-term loan,implying that the bank continues to serve the client’s account even if the required amount of funds exceeds the existing balance. This is done only when the overdraft limit has been pre-set on the card account. It should be remembered that the bank will never be able to independently, that is, without the knowledge and permission of the client, connect this type of loan to the card, if this is not stipulated by the conditions of the card agreement or is not specified in any other document signed with the bank. Also, the overdraft amount cannot change without authorization. It can be reduced only in accordance with a specific clause of the contract in case of unfair customer attitude or increased, but only after the conditions for such a service have been agreed and signed by both the bank and the potential borrower.
Overdraft limit
What is an overdraft limit?This is a certain part of the amount of regular receipts of funds to the client’s account, the amount of which is determined by the bank on the basis of various indicators depending both on the card user and directly on the financial institution. Some may provide large sums of money and practically without knowing anything about the borrower, but the percentage for use will significantly exceed the same in other banks, as if compensating for possible risks. Overdraft can be connected to various accounts of a potential client. This can be either a current account, for the use of which it is necessary to pay a visit to the bank, or a regular card account. Such a card with an overdraft limit allows you to use funds that are not yet in the account, but as soon as they enter it - the amount of the debt will be automatically repaid.
Overdraft term
Each type of lending hasa certain period during which the amount of debt must go to the customer’s account. As well as the calculation of the overdraft limit, the turnover period is calculated by the bank on the basis of all information available to it about the receipts to the account of the borrower and about him personally. The better the financial performance of the client, the more often the money comes to him, the better the credit history and so on, the greater will be the amount that the bank is able to provide. That is, a private entrepreneur, who constantly receives certain amounts on the account, can count on a large overdraft limit. This applies not only to entrepreneurs or legal entities. It may well be that an LLC with a large turnover can receive at its own expense in a certain bank amounts, albeit large, but irregularly and fairly rarely. In this case, the question of such a loan may not even be raised.
Overdraft repayment
Under certain conditions, such a loan maydo not redeem automatically when funds are credited to the account. This happens when a client has been working with a bank for a long time, has a long positive credit history, and can tell anyone what the overdraft limit is. The Bank understands the reliability of such a borrower and offers it more favorable conditions, which, on the one hand, are designed to keep it among its own clients, and on the other hand, they can improve the well-being of the client. That is, in this case, the overdraft is deliberately extinguished and only those amounts that the borrower will allocate to it at a convenient time for him.
pros
Главным и основным плюсом данного типа crediting can be considered the ability to make payments by means that are not yet available. This dramatically increases the convenience of using the account, makes life easier for the client and in some cases (especially for entrepreneurs or legal entities) allows you to make better deals without looking at the balance of available funds. In addition, in most cases, as long as the borrower has not “climbed” into the overdraft limit, it does not oblige him to make any payments. Commissions from it are also not charged. This makes it possible to feel more confident, even if the use of credit is extremely rare. That is, if necessary, the client knows for sure that he has the opportunity to pay his bills.
Minuses
Overdraft limit is a scourge for people who are unablekeep track of your own finances. They just can't stop if they know they can spend some more money. The fact that in the future they will have to return, such individuals recall, unfortunately, too late. In many cases, this moment becomes a problem in relations between the bank and its client, since from the point of view of a financial organization, it simply provides an opportunity to spend money in case of such a need. The borrower believes that he was almost forcibly forced to use the money, and now they are also charged for it. This most often ends with either the bank closing the limit, or the client who has taken himself in hand asks for it himself.
Overdrafts in Sberbank
One of the most favorable conditions for the provision ofsimilar services - in Sberbank. The bank analyzes the financial condition of the client, his own and his credit history, after which he makes an offer to connect the overdraft limit in Sberbank. The amount of such a loan can vary within very wide limits and depends entirely on the borrower, its operations with the account, the funds received there and many other parameters.
Outcomes
In general, an overdraft limit is an opportunityprovided by financial institutions, spend more money if necessary. Able to take into account their own income and expenses will be able to use this option for their own benefit, and even earn more than you have to return (even considering the interest). People who can not refrain from shopping, it is recommended to refrain from using this service in order to avoid overpayments and problems in the field of credit.
