If we talk simple words, then overdraft - This is a kind of misunderstanding bank loan, which is issued at a minimum period of time. However, these two terms should not identify, as they have significant differences.
Overdraft can be granted an extremely person that has an impeccable payer's reputation. It should also be noted that a careful check of the level of the potential client's solvency level is carried out and only in the case of a positive result, the latter can count on a positive outcome for itself.
In practice, Overdraft is presented in the form of cash flows available on the card account. Such a reserve may be very useful for unplanned cases. In this case, the financial institution has confidence in the client by providing a credit card and provides a credit amount that may be needed in force majeure circumstances.
When Overdraft, an organization that is a lender automatically adds the missing amount during the calculation. As a result of this operation, cash overruns, which is also called debit balance. The amount of the balance will be an equivalent amount issued by overdraft.
The financial institution may admit debit balance under the current account of the client only if the cooperation agreement was previously concluded. An exception can be provided if this option is included in the list of services offered by the credit institution.
In the case of overdraft, the client receives instant access to the required monetary amount. At the same time, the repayment is carried out automatically due to the receipt of money on the payer's card. From the amount that enters the card account, the overdraft limit is first subtracted and interest pays. The remaining amount is credited to the card account.
Provided if the debt repayment did not take place during the agreed period (about thirty or fifty days) due to the receipt of funds for a card account, the debt payment should occur in any other way.
The essential advantages of overdraft include the lack of need to prepare a large number of documents and undergo the procedure for verifying the Bank's Security Service. Due to this, it is possible to achieve significant saving time.
Overdraft in Sberbank is a kind of mini-credit, which is provided to both legal and individuals who own settlement and debit accounts for a short period of time.
Overdraft in Sberbank for legal entities is the mutually beneficial cooperation of the bank and the enterprise (as well as a private entrepreneur) on the basis of regular monetary turnover on the client's accounts paid by the Bank for interest for such a service.
Almost all banks in the Russian Federation provide legal entities such as Overdraft: Sberbank, Promsvyazbank, VTB24, Alfa-Bank and other, less popular among borrowers.
Overdraft in Sberbank for individuals is the provision of a limited amount of funds to the Bank's salary card directly in proportion to the level of its wage under a certain percentage.
The size of the provided loan for a private person varies within the following amount: from 1000 to 30,000 rubles under 18% per annum. For enterprises, another amount: from 100,000 rubles. Up to 17 million rubles for a minimum rate of 19.09% per annum, which depends inversely proportional to the financial condition of the borrower.
The overdraft service in Sberbank is primarily beneficial to those who, in rare cases, occupies a certain amount of money, while having permanent income, which in turn will not work overdue the payment on the deadline established by the Bank.
Loans Documents TermsBank Overdraft - This is the provision of cash borrowing, by lending to the bank of its current account within the established limit, if there is insufficiency or absence in the account of funds, in order to pay for the calculated documents.
Similar words, the bank overdraft can be said so - it is a short-term, constantly renewable loan, which can be used by enterprises or entrepreneurs who periodically appear temporary, short-term needs for additional cash for payments. Such a loan is automatically repaid by the bank from the remnant of the customer's funds on his account for the morning of each day. For example, on the first day, the client was issued overdraft, during the next day money received money, and in the morning of the third day due to accumulated funds, the loan was repaid.
Banks offer their customers the following types of overdraft:
The requirements of various banks to customers, when considering the possibility of providing an overdraft may differ. But exemplary conditions of overdraft in all banks are almost not identical and consist of the following requirements:
To obtain an overdraft to legal entities, it is necessary to submit to the bank a standard package of documents for consideration of a credit application for lending and more:
Standard overdraft - is provided by a borrower with a borrower within the established limit for the execution of the Borrower's payment orders and payment of expenditures associated with their execution, as well as the Borrower's cash documents, despite the failure or lack of cash on the account.
The calculation of the limit of the standard overdraft is carried out by the formula:
L \u003d T / 2
where: L is the calculated overdraft limit; T is the minimum truncated monthly loan turnover on the customer's current account.
Overdraft in advance is provided to the client satisfying the requirements of the Bank in order to attract it to calculate it - cash services to the bank.
The calculation of the overdraft limit in advance is carried out by the formula:
L \u003d T (A) / 3
where: L is the calculated overdraft limit; T (a) - the minimum truncated monthly loan turnover on the Customer's current account minus the upcoming payments to repay debt on loans and pay interest to credit banks.
The minimum truncated monthly loan turnover on the Customer's current account in the Bank is calculated as follows:
Overdraft under collection is submitted to customers satisfying the requirements of the bank and at least 75% of the revolutions on the loan account of which is the accountable cash proceeds (including the client's accountable account).
The calculation of the overdraft limit under the collection is carried out by the formula:
L \u003d i / 1.5
where: L is the calculated overdraft limit; I - the minimum monthly amount of customer's cash receipts
The minimum truncated monthly amount of accountable revenue, taking into account the clients handed themselves, is calculated as follows:
The technical overdraft is submitted to the client, without taking into account its financial condition, under the payments to the borrower (selling / buying currency on the exchange, before returning an urgent deposit or other guaranteed receipts to the client's account).
The calculation of the technical overdraft limit is carried out by the formula:
L \u003d 0.95 x SU X K
or
L \u003d 0.95 x s
where: L is the calculated overdraft limit; SU - the amount of funds in currency aimed at conversion; K - stock exchange rate (rubles / currency) on the day of the transfer of funds; S is the amount of guaranteed receipts to the client's account during the nearest 3 (three) working days. After receiving the expected receipts to the client's account, technical overdraft closes.
Overdraft calculation techniques in various banks may have their own distinctive features, but the general principle does not change. The limits of the standard overdraft, overdraft in advance and overdraft under the collection are revised by banks monthly, taking into account changes in the results of the client's activities. For confidence in the observance of the limit, each accountant can calculate overdraft. And yet, to increase the sum of the overdraft limit, each accountant should be able to control the flow of money and revenue, without allowing single major payments. Maximum payments, if necessary, divide several medium.
Overdraft problems arising during lending period:
About overdraft for individuals can be found from the material.
In cases where, in accordance with the Bank Account Agreement, the Bank exercises payments from the account despite the lack of funds (account crediting), the Bank is considered to be a loan to the Client for the appropriate amount from the day the payment of such payment.
Overdraft. (Eng. Overdraft - Example Plan) - a special form of providing a short-term loan to a bank to the Bank in the case when the payment value exceeds the balance of the client's account. In this case, the Bank writes off funds from the client's account in full, that is, automatically provides a loan to the client for an amount exceeding the balance of funds. As a result of overdraft, the bank is formed, speaking by the accounting language, debit balance. Overdraft use is provided to the most reliable banks of the Bank under the Agreement, which establishes the maximum amount of overdraft, the conditions for providing a overdraft loan, the order of its repayment. Overdraft differs from ordinary loans in the fact that all amounts entering the current account of the client are sent to the debt repayment. (Raysberg B.A., Lozovsky L.Sh., Starodubtseva E.B. "Modern Economic Dictionary Infra-M, 2006).
For example, you are the owner of a debit bank card on which your income (salary, other arrivals) are listed on each month.
Let's say a monthly receipt to your account is 50,000 rubles. You spend money, and after paying another purchase, you have 2,000 rubles on your account. But the urgent need arises to buy a value of 5000 rubles. 5000 rubles are written off the card, while you have a minus of 3000 rubles on your account. However, it is possible to use this way of lending not to any amount, but only within the overdraft limit.
This is the amount of money that you, in the absence of your account (tied, as a rule, to the debit card) of funds, can "take" from the bank. Such a limit in banks is set differently. For example, such a limit can be tied to your monthly income transferred to the card and make a percentage of the indicated income. The limit can be installed in a solid amount. It should be remembered that if you used the banking overdraft, then the cash bank will write on your account first of all for repaying your "debt" (ie, to repay the balance on the account with the minus sign.
A debit or calculation card cannot be issued to you by the bank before opening a bank account, to which, as they say, the specified map is "tied". Overdraft. - This is crediting your bank account in the absence of cash on it. A debit card is only a convenient means for carrying out operations with money on the account: if there is a card, to remove funds, you do not have to visit the Bank's Department, you can pay off the card for purchased goods and services, to remove cash in ATMs.
The calculated (debit) card is intended to perform operations by its holder within the amount established by the credit institution - the issuer of the amount of funds (expenditure limit), the calculations for which are carried out at the expense of the Customer's funds on its bank account, or a loan provided by the Credit Organization - the Issuer to the client in accordance with the bank account agreement with the insufficiency or absence of funds in the bank account (overdraft) ("Regulations on the emission of bank cards and on operations committed using payment cards" (approved by the Bank of Russia 24.12.2004 N 266-P) (in Editions of 11/15/2011, as amended from 10.08.2012).
Interest for Overdraft is usually higher than, for example, by consumer loan. In addition, banks usually charge more commissions. For example, a commission for servicing the overdraft limit, a commission for issuing cash and others, the legality of individual banking commissions is a separate topic.
Penalties may be provided for the late repayment of overdraft.
The condition about overdraft, limit overdraft, percentages for use, penalties are negotiated into the contract with the bank. Therefore, it is recommended to learn all these conditions so as not to see one day an extract from which it follows that you should already have a bank of an amount equal to several of your salary.
Recall that if there is no condition about Overdraft in the contract with the bank, but the bank actually provided you with a loan in the absence of money on your account, you are not required to pay interest at the rate set for overdraft
Even if you have already signed an agreement with the bank, according to the terms of which you are provided with an overdraft with a certain limit, it does not interfere with the refuse of obtaining overdraft. To do this, you must send a relevant refusal application to the bank.
Back to judicial practice review: Return of banking commissions on a loan agreementwhere the following articles were included:
Not all owners of plastic cards know what overdraft in the bank is, and what it differs from the usual credit limit. It is necessary to immediately say that this service is available only to debit cardholders, that is, clients using own funds for expenditure operations, not borrowed. The service has several features, advantages and disadvantages, so it makes sense to learn more about it.
Debit cardholders manage only their own funds enrolled on their own expense. These also include participants in salary projects and recipients of pensions and social benefits. But in the absence of funds in the account, the Bank provides the ability to make purchases "over limit" or otherwise to "leave in minus".
Overdraft is a loan provided by the Issuer Bank for a short period under the percentage indicated in the contract.
Of course, not all debit card holders can enjoy overdraft. It is available mainly to reliable and efficient customers, payments to payments through the bank. According to the terms of the contract, the limit of borrowed funds is limited and largely depends on the amount of funds for funds for a certain period, respectively, it is calculated individually.
Definition
To more clearly understand what is overdraft, you need to consider the following example. The owner of the salary card made a purchase in the amount of 5,000 rubles, despite the fact that the balance on his account was 2000 rubles. That is, it exceeded the limit of 3,000 rubles, more precisely, he took them from the bank to the salary at interest. After receipt of the next payment, the lender will automatically spish the principal debt and interest for using the loan.
Overdraft loan is the same loan, but there are several significant differences:
Only those customers can use the service in the contract with which it is provided.
Not to all customers the bank offers to use the service, especially new. When making a debit card, the client is enough to provide only a passport and application, and to use borrowed money, for example, Overdraft, you need to confirm your income and its size is documented.
The second way to use the service is to be a bank depositor a certain period of time, it is usually determined by the lender. That is, conscientious and proven customers can count on offer to get the dedderft by debit card. To do this, come to the bank branch and conclude an additional contract.
Often the service is provided immediately to salary customers.Especially when all employees of one firm participate in the project. The loan size will be directly dependent on the size of the customer wage. Here to enter into an additional contract is optional, to collect certificates of income too.
As mentioned earlier, the loan size completely depends on the regularity and the value of the receipt of funds to the client's account. Although for some cards, for example, gold and platinum, and they, notice, are far from everyone, the overdraft can be significantly higher, and it is drawn up when the card is released.
Carefully read the Treaty at the Bank when opening a debit account, perhaps this service is already provided, and not on the most favorable terms.
Overdraft interest is quite high. If the consumer loan is accessible and loyal percentage from 15% to 25% per year, then overdraft, it may exceed 60% per annum. But, pay attention, the loan period is not more than one month, which means that the lender will take only 5% of the amount per month, which is slightly for the client.
Main criteria overdraft
Please note that untimely payment of debt bank can apply sanctions in the form of fines and penalties.
By the way, the contract for the provision of a short-term loan has a rather short time, usually from 6 to 12 months. By its expiration, the client can contact the bank and conclude a negotiation agreement. Of course, the lender can revise the terms of the provision of services, reduce, or, on the contrary, increase the limit.
Overdraft useful service for each client, because many are familiar with the position when money on the map is not enough to pay for the purchase. Open an additional credit card is quite troublesome, you need to collect references and go to the bank, then wait for a while when the card is ready. Having the opportunity to use overdraft, this is not necessary.
The disadvantage is only that pay for unforeseen spending will have to be at the same time, that is, at once, as soon as the account is replenished, the bank will remove borrowed funds and interest. Accordingly, it will have to use overdraft again and pay interest on it. therefore you need to use the service carefullyThis fact celebrated many users.
It often happens that debit cardholders are forced to pay for overdraft, but with the contract the service is not provided. Indeed, technical overdraft takes place in some cases:
Carefully read the contract with the Bank, if it is indicated that the provided technical overdraft must be paid within a few days, the client is obliged to do it.Because he himself agreed on this condition, signing an agreement.
If the technical overdraft is unforeseen, then the lender is entitled to demand from the owner of the card to pay for debt, plus interest, fines and penalties in case of an overdue payment. This is regulated at the legislative level in Art. 1107 p. 2 of the Civil Code of the Russian Federation.
It can be concluded: both for the bank and the client is beneficial for such a service as overdraft that this offer can save the user card to make a credit card. On the other hand, it should be remembered that this is the same loan, although short-term, it needs to be returned to the terms established by the contract and pay interest on it.
Hello, friends!
We continue to increase our financial literacy with you and at the same time tighten your English language. Today, the foreign term "overdraft" is in line. We learn its meaning, learn to understand and not be afraid.
Every year the number of bank card users is growing. Among them are students, pensioners, and even children. Why? It is convenient, practical and safely compared to a pack of money or mountain coins in the wallet. We all more actively use bank cards to obtain earned money, translations, removal of cash and payment of goods and services in stores, the Internet.
Banks try to support our desire to use and credit cards. After all, solvent clients are the main source of profits and the meaning of the existence of the financial and credit organization itself. Banks compete with each other, lure us with new banking products and make proposals from which it is difficult to refuse.
We have already figured out the concepts, species and conditions for the use of debit and credit cards. Find out what, for example, cache and overdraft. It is on the latter that I want to stay in more detail today. Not everyone loves to enjoy the loan, but not everyone suspects that they can become a debtor of the bank, and without having borrowed money. How is it possible? Let's deal with.
Foreign word "Overdraft" (Overdraft) translated from English means "overrun", "Excess loan". We see a familiar word loan, so we think it only applies to lovers to live in debt. This is not quite so. With overdraft there may be an ardent opponent of other people's money. Reading the reviews of bank card holders, I was convinced of this. But first things first.
Overdraft is a short-term loan that is provided by the Bank under a bank account agreement to holders of maps (as a rule, salary). For example, when you lack your own funds for the purchase of any product, the bank will be happy to provide the missing amount. But on certain conditions, of course.
The Civil Code of the Russian Federation (Article 850) indicates that if the bank holds payments from the client's account in the absence of money on it, he thus gives him a loan with all the ensuing consequences. The loan is issued for a certain period and notice. This also applies to overdraft.
From here there are fair questions: "Do I need overdraft?", "How to connect?" And "How is it quenching?" Answers to them depend on its type and bank providing this service.
Distinguish:
Let us dwell on them.
The rescued overdraft is connected by the personal statement of the card holder. It is provided within the limit established by the Bank and under a certain percentage. These conditions differ not only from different banks, but also from different customers of one financial institution.
Overdraft limit - This is the amount that the Bank's client can have if the lack of one's own money is lacking. It is calculated for a particular person, based on the amount of funds that pass through his card, its credit history and some other factors.
Interest in banks also differ. For example, Sberbank established the following:
Attention! Sberbank connects the service overdraft not to all cards, but only to debit (salary). But, for example, if you are the "World Classic" owner, "the world of Golden", the "Premium World", then the overdraft limit is not provided. A complete list can be found on the bank's website.
In his article, I dwells more detail on issues of tariffs, the conditions for obtaining and using them. If you have not read yet, then catch up with the missed.
In Tinkoff, the Bank has such conditions:
These conditions operate for debit cards, only technical overdraft is possible on credit.
Read about the terms of use and pitfalls in my article. It can be very useful. Especially if you are on the way to choose an optimal means of payment.
Unresolved or technical overdraft may occur, even if you have never been borrowed. And this often becomes an unpleasant surprise, which turns out not only the occurrence of debt, but also by accrual interest and fines for non-risk. To avoid this, you need to know the common causes of debt:
Avoid technical overdraft easy. Who is warned, he is armed. If we know about the potential to leave in minus, it is enough to keep on the map the minimum stock of money or constantly monitor the status of the account in order to pay off the debt on time. Banks often provide a grace period (usually a month) during which we can return without percent the entire amount of debt.
Let me remind you that overdraft is connected with the consent of the client. Sometimes this service is automatically entered into a bank account agreement. Therefore, I do not get tired of repeating that carefully read all the documents and ask about all the ambiguities. There is a signature in the contract - it means that we agreed with all the requirements of the bank.
Conditions for connecting an overdraft service in banks are different, but here is an exemplary list of documents that may be needed:
As you can see, the set of documents is minimal.
Since the bank agrees to share with our money, it is quite explained that it makes certain requirements for potential borrowers. Among them can be:
That is why overdraft actively connects to salary cards. Often the banks themselves call the client and offer this service. It will be appropriate here than the debit card differs from overdraft.
Remember! When paying with a debit card, you manage only with your money. And no more than a penny. If they connected the overdraft service, you can take a missing amount in the bank. But these are no longer yours, but other people's money that needs to be returned.
Overdraft is a short-term loan. Dates vary from 6 months to 1 year. During this time, you can lose or change the place of work, move, etc. Therefore, banks require periodically renew the contract. So they reduce the risks of non-return of money provided to you.
This service works in the same way as any loan. Considered, it means, after some time, it is necessary to return it and pay interest for the use of other people's money.
Although Overdraft is a type of consumer loan, but there is still differences between them.
| Comparison parameters | Credit | Overdraft. |
| Loan terms | Different, depending on the creditworthiness of the borrower and the type of loan. | Only short-term loan (in most cases up to 1 year). |
| Credit amount | It is calculated after a careful analysis of the solvency of the borrower. Not only his monthly income, but also income of family members, property owned, etc. | It is calculated on the basis of monthly money receipts on the card. |
| The frequency of making payments | Periodically (as a rule, 1 time per month) throughout the term of credit. | With the next receipt of money on the card, the full amount of debt is immediately written off. |
| Terms of issue | A set of documents confirming your solvency. Often requires pledge and guarantors. | Minimum set of standard documents. No deposit and guarantors. Rapid decision on connecting the service. |
| Terms of use | The entire requested amount is issued immediately, which is repaid by parts depending on the terms of the contract. To resume a credit line, you must contact the bank again. | The loan is renewable as expected and repayment. |
| Interest rate | Individual for different types of loan, term and consideration conditions, borrower solvency. | The same for all card holders with overdraft. As a rule, higher than on the loan. |
The speed of receipt | Time takes time, since the Bank makes a decision only after analyzing the creditworthiness of the borrower. | If you have a positive decision on connecting an overdraft service with money, you can use at any time of the day and night. |
Traditionally, I will consider all the advantages and disadvantages of the card with overdraft.
Benefits:
And, of course, shortcomings:
To abandon this service, it is enough to write a statement about it. The contract will be terminated if there is no debt to the bank.
Please note that if you change the place of work, it is not enough just to throw the salary card of your former employer. Contact your bank or check yourself, there is no debt. Otherwise, you can get a unpleasant surprise in the form of accrued interest and fines for non-timely redefined debt.
Some banks practice the inability to turn off overdraft. This is necessarily in the contract. In this case, when it is conclosed, you can specify a zero limit to receive money.
Everyone chooses himself, on what money it will live, own or borrowed. Overdraft do not need to be afraid, but it is necessary to understand how to use them, so as not to drive themselves into the debt. Constantly keep your hand on the pulse of your finances. Then you can afford a little more than you have at the moment. Agree, it is sometimes vital.
I will be glad if you finish the article by your thoughts about this in the comments. Or maybe you have interesting cases from life? They will give readers the necessary experience and will have invaluable help.
