Overdraft card - what is it? What is an overdraft bank card?

All individuals and legal entities that have an account with a bank can apply for a loan in the form of an overdraft, if desired. The word "credit" is understandable today even for the student, but that's what the overdraft account stands for and why it can not be called a loan is not known to everyone.

What is an overdraft for?

If you need to close a hole in the payment turnover, you can issue a bank loan with huge interest rates, but an overdraft. Suppose you have a settlement account with a bank, you use it not only for profit, but for deducting certain amounts to the customer. At some point, the required amount was not on the account, but it is necessary to transfer the money as quickly as possible. Receipt of funds to your account should occur in a day, but the customer can not wait. To urgently transfer money to the customer, an overdraft card is used. This type of loan should not be confused with a loan or other financial transaction. When issuing a certain type of card is issued - overdraft.

Examples and specific figures

In order that the term " overdraft card" is more understandable, what is it, here is a concrete example with figures on which you can understand how this type of loan works.

In the morning on the balance of the entrepreneur 10 000 rubles. He on this day goes to the bank and signs an agreement to open an overdraft limit for the amount of 1,000,000 rubles. Using a paper carrier, the entrepreneur gives an order to the bank for the amount of 100 000 rubles. The bank pays the necessary money to the counterparty, including through overdraft. It turns out that the overdraft businessman remains to the bank 90 000 rubles, but he still has 910 000 rubles in the limit, which he can use if necessary.

Suppose, the next day an amount of 120,000 is received on the businessman's account (for example, the money was transferred by the counterparty). Debt on a loan in the form of an overdraft is repaid, and the free limit of funds that an entrepreneur can use is restored again. It turns out, the next day at his disposal again the amount of 1 000 000 rubles. Here is a descriptive example that reveals the essence of the question of what an overdraft bank card is.

For what purposes can you spend the limit of money issued by the bank

Almost any bank exercises control over the money that it gave to loans to a legal or physical person. If the borrower has his own business, then the overdraft is used to pay bills, pay wages, taxes, make advance payments for work, repay loans, and so on. The bank will not let you use the cash limit if you forget to pay taxes or credits and have already paid a penalty. If the borrower has had such a case, the bank will not allow him to even buy non-current assets from the overdraft.

Force Majeure, or Overdraft Indebtedness

It is impossible to predict what will happen tomorrow, how your business will go. If you did not calculate your possibilities and the necessary amount of money did not go to your bank account, then this is not the worst, provided that the limit of the bank loan was not affected. Overdraft card - what is this about the debt to the bank?

If you still used this type of loan, and the receipt of money to the bank never happened before the date stipulated by the agreement, the payment can be made in cash at the bank's cash desk. If the borrower has a second account, which constantly receives money, then you can transfer them to the one where there is an overdraft debt. All operations take place within one working day.

When signing a contract, you must clearly indicate the date to which you must make money. As a rule, this is the 30th day since the opening of the credit limit. Some banks ask to cover the debt before the 20th day of each month, regardless of the date of opening the limit.

On what conditions can I open an overdraft card

To apply for a bank loan, a borrower often needs to have a bunch of certificates and documents that confirm his solvency. If you need a large amount of money, you can require and sponsors. Overdraft card of "Sberbank" Visa Classic Is provided without collateral. It is enough for the bank to see your monthly cash flow to the account. Based on the amount of money turnover and the decision is made in what quantity you will be given an overdraft. It is not excluded that the lender will require guarantors, it may be the director of the enterprise, the owner, co-owner and other persons associated with your type of activity.

Who can refuse to issue money

Overdraft card - what is it, is it given to everyone? It would seem that if there is an account for which a certain amount of money is regularly received, then why should the bank refuse to issue an overdraft? It turns out that it is not enough to use the account, it is still necessary to have a positive credit history. Before making a decision, the bank will check not only the applicant, but the entire enterprise. If it seems to him that it will be liquidated in a couple of months or will not yield income, then the loan will most likely be refused. In addition, no less than three months of turnover must occur on the applicant's settlement account. Although to the last demand, each bank is suitable, based on its point of view. There are such cases: overdrawned an important client who recently opened an account with this bank, but already for many years has accounts in other financial organizations. The bank can make a request to those organizations that carry out the turnover of the client's money, and on the basis of this information make a decision on the credit limit. When considering an application, they are interested not only in the monthly amount of funds that are received on the account, but also in the frequency with which money is circulated.

Terms of the overdraft agreement

If the result is positive, an agreement is drawn up with the borrower for 180 days or more. Every 30 days the amount on the account must be replenished to cover the overdraft debt. With full repayment of the debt to the bank, the borrower has the right to terminate the contract. It is also allowed after 180 days to formalize a new agreement. Interest on such an agreement has always been less than the loan in the bank. The conditions for granting an overdraft are much more loyal, since interest for the use of money is accrued only on the balance of debt at the end of the working day.

With the debts that have arisen, the bank has the right to demand its money in the shortest possible time, and if you have such a situation, you are provided with a black list and a bad credit history. Overdraft is given in one currency, one borrower and one bank.

The best loan

Overdraft card - what is it for the borrower: the benefit or the debt hole? Often a person can not plan his expenses, and when he gets paid he starts to buy a lot of unnecessary things. At the last moment, he remembers that the most important thing was never acquired, and not all payments were completed on time. You can ask your relatives and friends for help, but not everyone has friends who can freely lend the necessary amount of money for several weeks.

Not everyone likes to lend money. Many are guided by the following principle: if you want a person to leave your life, lend him money. Why test the theory in practice, it is better simply to refuse in debt, referring to hard financial times. Why go around, if you can borrow from the bank for the same couple of weeks, and even at a low interest.

Overdraft as one of the types of lending

What is an overdraft bank card? This phrase from the English language is translated as "over count". Throughout the world, this service is gaining popularity every year not only among businessmen, but also among the ordinary working class. You can independently calculate how much you can open the bank in case of approval of the application. The overdraft amount will not exceed the average salary of the applicant for three months. If contributions are of a regular nature, then the client can withdraw money from the account until such time as the agreement ceases to operate.

What is an overdraft card for an individual? To any working person the salary is transferred to the card. If the bank decided to open a credit line, this implies that the overdraft will be overlapped by the salary. In case of dismissal of the employee, the overdraft will have to be repaid in full within a few days.