Overdraft means the granting of a loan in the amount exceeding the balance of current (settlement) account, card account or correspondent account of the borrower either:
- in a cashless settlement, or
- by transferring funds against payment documents provided by the borrower, or
- by using funds according to the borrower’s instructions by means of payment instruments (cheque, debit card, other instruments), or
- by cash withdrawal.
In other words, an overdraft is a loan which can be used by the borrower in case of any short term liquidity gap.
Main advantages of the product are:
- acceleration of payments;
- coverage of cash deficit;
- operative liquidity management;
- no limitations on loan utilization purposes;
- simplified approach to the loan security;
- minimal documents required for granting and maintaining the loan;
- overdraft limit may be increased in case of turnover growth.
The main purpose of using an overdraft is covering a liquidity gap, which may arise during financial and economic activity.
Currency of disbursement: the currency of the loan corresponds to that of the current account on which the overdraft is provided (BYR, USD, EUR, RUB.)