Almost everyone 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 the 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 the repeated renewal during the term of the contract. In addition, you need to repay the loan at least once a month, and interest is calculated on the entire amount of the debt.
What does a potential borrower need to know?
Overdraft is a revolving line of credit. Subject to timely repayment of debt, it will be possible to use the funds an unlimited number of times. This is very convenient for customers who value their time and cannot get a new loan each time.
Such a loan is much cheaper than the "money to salary", which is now provided by microfinance organizations.
The interest rate in all banks is floating. It depends on the income level of the client.
Overdraft is not only officially issued, but also technical. In the second case, a negative account balance may occur after converting funds or withdrawing cash through an ATM with a large amount of commission. In the event of a technical overdraft, the bank provides 35 days to pay off the debt. Otherwise, penalties 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 through any ATM.
For some time now, Belarusian banks have developed the practice of selling overdrafts simultaneously with the execution of a salary project. This may come as a big surprise to many retired employees. Indeed, in the event of a delay in the transfer of income, penalties will be applied to the client.
Features
Overdraft is issued only to existing customers 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 customer income. If there is not enough own funds on the card to make a purchase, 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 - this is the same loan on which interest is accrued. That is, the client will still have to return the principal amount and the accrued commission to the bank. Unlike a regular 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 BYN 100,000 and used only BYN 10,000, then interest will be charged only on this amount until the debt is paid off.
Today we’ll talk about how to get an overdraft at Belarusbank.
How to issue?
An application for overdraft from Belarusbank can be submitted directly on the website of a lending 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 in the "Services" section. You can also submit an application 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 filled-in application gets to the credit department of the bank at the place of opening the account (card).
Employees of the same department will inform about the results of the preliminary decision of the client by SMS or by any other method chosen by them . If the application is approved, the client will be invited to the office to provide the originals of the requested documents and sign the contract.
Overdraft “ Belarusbank ” draws up with a passport and income statement for the last two quarters.
Conditions
Belarusbank OJSC provides loans for salary cards under two programs, which differ in terms of limits, terms and commission:
1. With a maturity of once a quarter. Overdraft " Belarusbank " provides for the year in the amount of double monthly income over the past six months. Interest rate = CP + 9 pp (11/29/16 - 29%). The validity period of a loan may not exceed the validity period of a card account .
2. With a repayment period of once every six months. Overdraft " Belarusbank " provides for the year in the amount of 400% of the average monthly income over the past six months. Interest rate = CP + 10 pp (as of 01.11.16 - 30%). The validity period of a loan may not exceed the validity period of a card account . This service is not provided to customers whose work experience is less than 1 year at the last place of work.
The previously existing program with a monthly maturity from 08/01/16 was closed.
Potential borrowers must meet the following requirements:
- be registered as individuals or individual entrepreneurs;
- have an impeccable credit history in the past;
- to have a bank account in which transactions were carried out for the last three months.
How to use 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, in what volume and what to spend the overdraft on. Belarusbank accrues interest only on the actual amount of debt. If the client has issued the service, but does not use it, then he will not pay a commission. Overdraft is connected automatically when the client pays the bill , the amount of which exceeds the balance of his own funds. The repayment of the loan is also carried out automatically after crediting the income to the account .
Credit vs Overdraft
At its core, overdraft is very similar to consumer credit, which is provided on cards. The loan amount in both cases depends on the level of salary. However, the maximum loan amount is higher than the overdraft from Belarusbank . Interest on cash withdrawal on the account - 4%. The rates for using funds are the same in both cases. However, when applying for a loan, interest is accrued on the entire amount of outstanding debt. No collateral or surety 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, it is enough to apply online. If the client already has a salary card, then you do not need to provide an income statement. 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 signature. After that, you can 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 case of arrears, the account will be blocked until the loan is fully repaid. In addition, the bank may apply other penalties in the form of a limit reduction and an increase in the rate. The disadvantages of overdraft are also the small credit limit and the short term of the contract (from 3 to 12 months).
Other options
Having examined in detail the conditions under which you can apply for loans on the card at Belarusbank , we will study other offers.
Rates on the market for servicing such loans range from 33 - 48%. At the same time, customers have to pay 34 - 42% for a consumer loan.
The lowest rate on the market is offered by BelVED Bank. The loan "Spare pennies" provides a commission of 33%. For the use of a similar product, customers of Franceabank 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 cashing of funds from the account is provided only for cards " MTBank ", " RRB-Bank ", "Bank of Moscow". A similar operation at Zepter Bank is charged at a rate of 2.5%, at Technobank - 3-5 % depending on the tariff plan.
Alfa-Bank provides a similar service only to salary card holders. The limit amount is 300% of the average monthly income. The interest rate increases with the period of use of the loan. When withdrawing funds from the account , a 2% commission is charged.
Amount | The number of days from the date of loan |
BYN | thirty | 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 is provided at 10% per annum. From 91 days, the 13% rate begins to operate. Exceptions are participants in 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 a card on which monthly income is received: salary, profit from entrepreneurial activity, pension.
“ Belarusbank ” provides loans on the card based on the level of income, but at “ BSP-Sberbank ” the first overdraft can be obtained for a maximum amount of 10,000 BYN at 16%. The application is considered within two business days. You can repay the loan within a year from the moment of debt formation. Obtaining an overdraft can not only citizens of Belarus , but also stateless persons in the presence of a constant 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. It is even better to activate it only in case of emergency. Overdraft is addictive. First, the client takes the borrowed funds “for important needs”, and after a couple of months he can’t stop, as the limit amount is constantly increasing, and there is not enough income to fully repay the debt.