Sometimes month-end seems to be far away and cash is needed to cover expenses during the month. Absa has great overdraft facilities for their clients where clients can access cash at any time. The overdraft is linked to the client’s current account which means the clients can still access funds even when they have no money.
The client will only pay interest on the daily balance of their account from the pre-agreed limit on the overdraft. Clients need to be Gold or Platinum cheque account holders with a regular income of R3 000 per month or more and must have a good credit record. Absa offers three kinds of overdrafts being the fixed facility, the reducing facility and the indefinite facility.
The fixed facility has a revolving limit that is reviewed each year where the client uses the cash up to the agreed limit and makes regular payments. At the end of the contract year, the client’s limit is renegotiated. A reducing facility has a limit that decreases as the client makes monthly payments. This is perfect for clients who only need cash for a short period. The indefinite facility allows clients to keep using the cash up to the agreed overdraft limit which revolves for an unspecified period, provided that the client makes regular payments.
Interest rates are based on individual risk profile and clients can pay off their overdraft faster because additional deposits are accepted as capital reductions. The affordable credit protection plan means that the client can settle the outstanding balance in the case of death, disability or retrenchment.
Clients must provide a valid South African ID and spouse’s written consent (if married in community of property) when they apply for Absa’s overdraft loan. By visiting www.absa.co.za clients can apply online and all view more of Absa’s product offerings. Alternatively clients can visit their nearest branch and speak with a consultant or call 0860 100 372.