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Products and services > Personal Loan and overdraft > Introduction > Overdrafts > Overview
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Overdraft
- An Overdraft limit is loaded to your current account. This means that you are borrowing on the same account into which your salary is paid every month
- You can use as much of your agreed Overdraft limit as you need. You only pay interest on the portion you use. Your Overdraft amount remains available even when you are not using it.
- You can withdraw up to the limit and repay the outstanding balance as many times as you like without notifying us.
- Your Overdraft is repayable on demand, which means the full amount is repayable on request if any of our conditions are not met. Your facility is reviewed annually.
- An Overdraft is ideal to help manage your cash flow in months when you have high expenditure or for financing small recurring or unforeseen expenses, which you intend paying off over a short period.
Amount you could qualify for
- The amount you qualify for depends on your income and your credit risk. Your credit risk is determined by the information held by credit bureaus, the way you maintain any existing Standard Bank accounts and your personal circumstances, for example, stability of job and fixed home address.
- Personal details such as race and gender do not affect our assessment of risk.
- The product has a maximum limit of R70 000 - the amount you borrow depends on what you can afford and how much you require. For large facilities security may be required.
Cost
Minimum monthly repayment
There is no minimum monthly repayment required on your Overdraft as long as you remain within your agreed limit and make at least one deposit (salary) into your current account every month.
Interest rate
- The interest rate you pay on your Overdraft is based on your credit risk. The rate is linked to prime so that you receive the benefit when prime rates decrease.
- Interest is calculated on your daily outstanding balance but charged to your account once a month.
- Rates charged vary between the prime rate, and the Usury and NCA maximum rates.
Monthly service fee
- A monthly service fee is charged on accounts with Overdraft limits in excess of R300. A fee will be levied on all accounts which are overdrawn and do not have an Overdraft limit in place.
Initiation Fee
This is a once-off fee that is charged for the administration associated with assessing and loading an overdraft facility to your account.
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