Overdraft what is it? Overdraft card of Sberbank
Monetary relations penetrate all spheres of human life, and with them extends and develops lending. This process is not only complicated in itself, but a rich and diverse terminology. For example, overdraft, what is it?
What is the overdraft for legal entities?
To grasp the essence of this concept is possible, if we refer to its origin. This is another borrowed term (that is for the credit sphere it is not uncommon), which in English is written as «overdraft». If we translate this word into Russian, it will be «over planned» or, simply, overspending.
So, overdraft, what is it? The term is applied in a situation if a person is going to pay some of the settlement documents when he has no sufficient funds to pay for them. If this happens, the Bank will issue the payment, writing off everything that was at that time on account, and those funds that are missing will immediately the loanreceived from the Bank.
It is necessary to understand the difference between the overdraft from classic lending (in addition to the way to obtain it). The difference is that the Bank will go absolutely all funds coming into the account, as long as the debt is paid in full. Sometimes some companies offer their customers a small grace period during which it is paid in the amount not accrue interest.
Overdraft for individuals
If we are talking about credit-overdraft for individuals, the situation is a little different. Understand by the word overdraft agreement, which, as a rule, cannot be longer than six months.
Credit-overdraft, in General, a conventional loan, but it has a key difference. The person receives a card that can spend money. The more he spends, the less the overdraft limit. If he puts a certain amount of money, the limit becomes the same.
You don’t have to overspend money and start using the loan to pay interest. It can be suitable when it is necessary and repay it at the first available opportunity.
As a rule, obtain a credit-overdraft can those who have a Bank account attached to a debit or credit card. The situation is much simpler in the case of credit card.
Of course, such lending has a much higher percentage than the classic targeted loans.
For the loan-overdraft of Bank customers give special overdraft card.
- If the person gets paid on a card from a particular Bank, the loan is bound to it. In such a situation, the guarantor would be considered a corporate client, i.e. the employer.
- Some banks may issue such card if the person made the contribution. This allows you to repay some of the debt by the money invested, while the Deposit interest is not going anywhere.
We should also consider overdraft the card of the savings Bank what it is. It can be considered a combination of credit and debit cards. That is, a person can simply use their funds on the card and may exceed the available amount will automatically get credit. It is clear that this has its own terms.
- First, the Agency will set a limit available for use when it is overrun. It depends on the solvency. The savings Bank issues from one thousand to thirty thousand roubles.
- The use of such loans will be charged interest. If the account is in rubles, they will be eighteen, if in another currency, sixteen.
- If the client pererastaet not just private funds but rather limit the percentage will increase to 36, if the account was in rubles and up to 33 in the case of the Euro and the dollar.
- It is clear that the percentage will increase in the event of nonpayment of debt.
Thus, overdraft card of Sberbank is not really a loan. This is an opportunity for a short term can get a little more money, if you have the opportunity to bring them back to the Bank.
Disadvantages of overdraft
Although the overdraft seems to be quite an attractive way to use a greater amount of money, it does have its drawbacks. In the first place, it is certainly a high percentage.
Serious problems can occur if the person received ordinary at first glance, a payroll card, and on it was connected to the overdraft. Not knowing this, a person can get into large debts and being unable to pay for them.
There are also situations in which the account of the person will write off more than the Bank permits, that is, the overdraft is activated without the owner’s knowledge. This is possible in the following situations.
- If the exchange rate fluctuates, and the client spent the money not in the currency in which your invoice at the time of the transaction can occur the conversion. Thus, the charged amount may change in a way that exceeds the limit.
- There may be situations when a customer buys something in the store using the payment card, but the Bank does not confirm. If the item sells, the limit will be exceeded.
- If a person has committed a money transfer, while having a few not yet confirmed operations, you can spend extra money. The fact that the Bank does not take into account the money involved in those operations that have not yet been confirmed.
- In rare cases, possible technical problems, like the secondary cancellation of the same amount. However, if this is discovered by the Bank, the money will come back and the debt will be repaid.
- There’s also the reverse situation a double charge. If this happened, and later the Bank will discover the error and take the money, you can get a negative amount, and triggered an overdraft.
A customer can use it exclusively at your own risk, with full pay and the opportunity to constantly monitor the status of funds.