Overdraft

Overdraft is a short-term loan for financing working capital needs with a fixed credit limit and term utilized via a current account of the borrower.

There is no requirement for cost-proving documents. There is no requirement for self-financing on the part of the borrower. Repayment The utilized amount is repaid automatically with the proceeds to the account. There is no fixed repayment plan. The funds restored with each repaid amount can be used repeatedly within the agreed term and conditions.

Advantages

  • Flexibility of payments
  • You have additional working capital that you can use at your convenience.

  • Speed and accessibility You are not required to present cost-proving and other additional documents for utilizing. You can use the electronic channel to order payments to your counterparts without leaving the office as well as being aware of the amount that you can use on your overdraft at any time.
  • Expense optimization You pay an interest only for the amount used and for the respective term

Whom is it Suitable for?

Organisations that have working capital needs and maximum payment flexibility:

  • Local and foreign companies
  • Public and financial institutions

Collateral

The loan may be secured by assets of the borrower or of third parties, established in favour of the bank as per the procedure and in the form established by law The assets may represent:

  • Real Estate
  • Movable assets
  • Financial assets
  • Goods
  • Securities
  • Mutual Funds
  • Receivables from third parties, etc.

Property insurance of collaterals is required.

Frequently Asked Questions

Usually, the overdraft term is one year.

Monthly you need to pay the due interest applicable on the utilized amount. The principal is due at the end of the term agreed in the contract.

The credit limit is restored automatically with the proceeds to the account and the repaid amount may be used repeatedly within the agreed term and conditions.

The interest due is calculated on the basis of the utilized amount for the respective number of days.

The market appraisal should be  renewed every year. The insurance must be maintained valid for the entire loan period.

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