5 Benefits of an overdraft loan
If you’re considering a personal overdraft loan but you’re not sure if it’s right for you, here’s five benefits to consider.
Linked to your current account, an overdraft loan facility gives you the convenient access of borrowing additional funds, up to your agreed limit, on the same account that you use for your daily transactions.
And while anyone can get an overdraft loan, just as long as you have an active Standard Bank current account, are 21 years or older and earn a minimum gross income of R3 000 per month, you might not have one. But by understanding the benefits that can come along with the facility, you may be more interested to apply.
The Benefits of an Overdraft Loan
An overdraft loan gives you immediate access to extra funds when you don’t have any left. Ideal for temporary financial issues, unexpected expenses or emergency costs, an overdraft gives you the comfort of knowing you will always have financial back-up.
You’re in control
When you request an overdraft loan, you agree on a maximum borrowing limit, giving you full control over exactly how much extra you can use every month. And you can easily increase and decrease your spend limit via any of Standard Bank’s self-service channels at any time.
Only pay for what you use
You only pay interest on what you use. Your interest rate is linked to the prime interest rate, so, if it drops, you will further benefit.
There are no monthly costs
You can take up to R500 overdraft loan with no initiation fee, monthly service fee or minimum monthly repayments required. Just make sure you remain within your agreed spend limit and make at least one monthly deposit into your current account, preferably your salary.
Keep yourself covered
Setting up insurance for your overdraft will ensure that you’re covered should you no longer be able to pay your outstanding balance.
For more information, head to our overdrafts page, or use the comments field to chat to customers and bank consultants in the money management tips section of the Community.