Is an overdraft issued on a Belarusbank Belkart card? What do you need to know about overdraft for it to be useful? What does the term “overdraft” mean?

September 11, 2018 15024

None of us are immune from unexpected financial expenses, for example, your mobile phone breaks down or your car needs emergency repairs. Of course, it would be nice to have a certain amount for a rainy day, but what if there is none?

The ideal way out of this situation may be overdraft. Today we will talk about the pros and cons of this type of lending.

An overdraft, unlike a regular consumer loan, is always provided on a card, most often a salary card

From the very meaning of the word “overdraft” it follows that it is something beyond the project, beyond the plan, in other words, by providing an overdraft, the bank allows you to spend more money than is on the card.

Types of overdraft

Overdraft can be permitted or technical.

WITH permitted overdraft everything is as clear as possible, this is the amount that the bank approved for you.

Technical overdraft- this is a debit balance on a card account (or negative balance) not authorized by the bank. This overdraft may occur as a result of:

carrying out currency exchange transactions
writing off previously erroneously credited funds
carrying out unauthorized transactions.

As a rule, you are given 14 days to repay a technical overdraft, and if you meet this deadline, no penalties will follow

If you exceed the deadline, you will have to pay, for example, at Belagroprombank you will be charged an interest rate on the balance of the debt in the amount of the refinancing rate of the National Bank. Belinvestbank warned that if the entire technical overdraft amount is not returned on time and penalties are paid, the card may even be suspended.

The conditions of different banks may differ, so we recommend asking the bank that issued your card whether a technical overdraft is possible on it, and what are the conditions for it?

Amount and term of overdraft

Overdraft limit The bank will determine it for you individually, depending on your income level, it can be either 1 average monthly salary or a larger amount.

Typically, an overdraft loan is provided by opening a revolving credit line for a period of about 1 year with the possibility of extension. In other words, during this period you borrow from the bank, then pay it back and borrow again.

Interest rate and overdraft repayment period

Overdraft rates today are in the range from 10% to 16% per annum. However, some banks offer more favorable conditions for repaying debt in a short time:

Technobank - 0.0001% per annum - subject to using the tranche for no more than 10 days
Idea Bank - 0.01% per annum - for the first two months
Belagroprombank - 9% per annum - within 90 days

BelVEB Bank offers its clients a reduced interest rate of 0.001% per annum on the Kali Laska overdraft loan, subject to the following conditions:

full repayment of debt within 20 days
conducting non-cash payments using a card (with the exception of paying for utilities, cash withdrawals, paying for insurance services and some other operations)

In addition, the rate under the contract may depend on the category of the client. For example, premium card holders may be offered a lower rate.

The repayment period of an overdraft loan is the period of time during which you need to pay the bank. It may differ in different institutions, in some places these terms are shorter, in others they are longer.

Let's give an example

Idea Bank provides an overdraft for clients receiving payroll services for a period of 23 months. You need to repay the loan 1 month after the overdraft period expires - you have 2 years to pay the bank. The principal debt is repaid in equal parts, interest is charged on the balance of the principal debt.

It turns out that you can use the overdraft for 23 months. You take a certain amount, repay, take again, and so on as needed. The main thing is to stay within the limit that the bank has set for you. You must repay your debt in full within 1 month after the expiration of the overdraft.

Bank Moscow-Minsk gives 90 days to repay each tranche, and the overdraft itself is provided for 12 months. Suppose you added the missing amount for the purchase of a refrigerator using an overdraft, you need to return it within 3 months, but at the same time you can make other expense transactions using credit funds - the main thing is to meet the limit.

Commissions and fines

If we talk about a bank card, the first commission that comes to mind is "for withdrawing cash from an ATM". However, don’t worry, if you use your bank’s ATM when making withdrawals, you won’t be charged a fee. At “foreign” ATMs, the size of the commission will depend on

And now about the fines. Can't avoid a fine in case of late payment. For example, in Belarusbank the overdraft penalty interest rate is equal to the refinancing rate of the National Bank and is 10% per annum.

At Bank Solution, the amount of overdue debt on the principal debt is charged with a rate for using the loan, increased by 30 percentage points, which is 46% per annum! You will be charged 0.1% interest on the amount of overdue debt for each day. The amount of the penalty accrued on the amount of overdue debt on the principal debt will be 0.3% for each day of delay. Therefore, it makes sense to pay everything on time.

Results

Having an overdraft on the card gives you the opportunity to use borrowed funds every day, 24 hours a day.

An overdraft loan for a salary card can be applied for online, and in most cases without proof of income!

Repayment of the overdraft and interest on it occurs automatically, with each receipt of money on the card.

Of course, when using an overdraft, you, as in the case of a regular loan, overpay the bank. However, in emergency situations it can be extremely useful. Although, it is worth remembering that having such a “magic” card in your pocket, there are more temptations to find a use for the available money.

Overdraft is a short-term type of lending that Belarusbank offers to card account holders. Overdraft can be used by clients who have current or deposit accounts with this bank, or who receive regular income.

Overdraft at Belarusbank makes it possible to make payments if there are insufficient funds on the card account. At the same time, the card holder himself determines at what moments and in what amount he needs the provision of such a service.

Types of overdraft at Belarusbank

The bank provides three types of lending in the form of overdraft:

1. With a monthly repayment period - a limit is set not exceeding the amount of monthly income calculated for the previous 3 months, at 19% per annum;

2. With a repayment period of three months – a limit is provided for one year up to 200% of the monthly income for the past 6 months, at 19.5% per annum;

3. With a repayment period of six months - the limit is provided for a year and can amount to up to 400% of monthly income for the past 6 months, at 20% per annum.

Terms of use of overdraft

To apply for an overdraft service, the card account holder must first enter into an agreement with Belarusbank. The following documents are required:

passport, identification code;
certificates of income for the last three months or statements of income from the card account.

The requirements for the client to obtain an overdraft loan are simple - age between 21-60 years and work experience at the last place of work for at least 3 months.

Advantages and disadvantages of overdraft

Overdraft advantages:

the interest rate on an overdraft is accrued only for the amount actually used, and coverage of both the loan itself and the accrued interest on it is made automatically when funds are credited to the account;
the overdraft can be used repeatedly, subject to its repayment;
An overdraft at Belarusbank has no intended purpose and is issued non-cash (invoice, transfer).

Disadvantages of overdraft:

strict linking of the limit to salary, which means small (compared to consumer loans) loan amounts;
short-term repayment (3-12 months).

If the overdraft is not repaid on time, Belarusbank applies penalties, which may include: termination of the overdraft, an increase in the annual interest rate, and a decrease in the limit level. Early repayment of the overdraft is also possible.

Many of us periodically face this problem: there is not enough money on the card, but we really want to buy what is currently on the counter. If the long-awaited salary or advance payment is coming soon, then the simplest solution is a “loan” from friends, relatives or acquaintances. In fact, the lack of money before your salary can be eliminated without the help of friends - an overdraft will help you with this.

What is an overdraft?

This is a loan issued by a bank to replenish an individual’s personal bank account. Unlike, say, a consumer loan, an overdraft can be renewed many times during the entire loan period; in addition, this loan must be repaid at least once a month, and interest is charged only on the actual debt on the loan.

Now let's try to decipher everything stated above.

So, an account has been opened in a bank in your name, into which your salary is received, and you have a plastic card with which you manage this money. This account is usually replenished twice a month (advance and salary); naturally, you can withdraw money from the account an unlimited number of times, within the amount on it.

But it may happen that the funds in your account are not enough to make any necessary purchase, or maybe due to unforeseen circumstances you spent much more than you planned, and now you simply have nothing to live on until your payday.

If you find yourself in a similar situation, you can contact the bank and apply for an overdraft loan. Based on the size of your salary, the bank will set the amount within which you will be granted a loan. This amount is called the overdraft limit.

After opening an overdraft, if the money in the account runs out, you will use the bank's funds within the overdraft limit. But since this is still a loan, firstly, it must be repaid, and secondly, interest must be paid.

The overdraft is repaid automatically after the money is credited to your account, and interest will not be charged on the entire loan amount, but only on the part that you have spent. That is, let’s assume that your limit is Br1,000,000, and you spent only Br10,000, which means that interest will be charged on Br10,000 and only for the period until the loan is repaid.

Where can I get it?

In most cases, to apply for an overdraft, you will only need to write an application, show your passport and a certificate of income (usually 3-6 months in advance). As for loan limits and repayment terms, each bank has its own characteristics.

IN Belarusbank There are three types of overdraft lending, differing in the size of the limit, repayment period and interest rate:

with a monthly repayment period - the limit is no more than the amount of average monthly income for the last 3 months, the interest rate on loans in Br is the refinancing rate of the National Bank (SR) + 6 percentage points. (as of March 22, 2010 – 19% per annum);
with a repayment period of 3 months – the limit is provided for a year and amounts to up to 200% of the average monthly income for the last 6 months, interest rate – SR+6.5 percentage points. (as of March 22, 2010 – 19.5% per annum);
with a repayment period of 6 months – the limit is provided for a year and amounts to up to 400% of the average monthly income for the last 6 months, interest rate – SR+7 p.p. (as of March 22, 2010 – 20% per annum).

BPS-Bank also provides three options for obtaining an overdraft:

with a repayment period of 3 months – the limit is up to 80% of the average monthly “net” income, the interest rate is SR+5 percentage points. (as of March 22, 2010 – 18% per annum);
with a repayment period of 6 months – the limit is up to 200% of the average monthly “net” income, the interest rate is SR+5.5 percentage points. (as of March 22, 2010 – 18.5% per annum);
with a repayment period of 12 months – the limit is up to 400% of the average monthly “net” income, the interest rate is SR+6 p.p. (as of March 22, 2010 – 19% per annum).

IN Belgazprombank The size of the limit will be determined by the bank on the following conditions:

for employees of the enterprise - within 100% of the average monthly salary for the last 3 months, but not more than Br5,000,000, repayment period - 3 months;
for company managers and their deputies - within 200% of the average monthly salary for the last 3 months, but not more than Br10,000,000, repayment period - 6 months;
interest rate SR+5 p.p. (18% per annum).

If you are the owner of a plastic “salary” card Belagroprombank, you can get a loan of at least Br100,000 (maximum amount of your monthly salary) for up to a year and at an interest rate of 19% per annum.

Opening an overdraft in Priorbank, you can count on an amount equal to four average monthly salaries (no more than Br5,000,000), which will be issued to you at an interest rate of 20% per annum for a period of up to 1 year.

IN Paritetbank You can get an overdraft loan for a year at an interest rate of CP+4 p.p. (as of March 22, 2010 – 17% per annum), and the limit amount will be calculated within the limits of average monthly income.

Clients can also take out this loan MTBank, moreover, if you receive a salary on a card account in this bank for more than 3 months, you do not need an income certificate to open an overdraft. The limit is 150% of the average monthly salary, the loan term is up to 1 year. Interest rates vary depending on the term:

1–20 days (Grace period) – 0%;
from 21 to 90 days – 12% per annum;
from 91 to 180 days – 17% per annum;
from 181 or more days – 19% per annum.

Overdraft from Alfa-Bank– this is an opportunity to receive a loan in the amount of 90% or 200% of the average monthly salary for the last 6 months (not more than Br5,000,000) for a period of 90 days and 180 days inclusive.

IN BTA-Bank are ready to provide an overdraft with a limit of up to 5 salaries at a rate of 24% per annum, and in Belinvestbank You can also receive an amount of up to 5 salaries, but at 19% per annum. Belrosbank makes it possible to use an overdraft loan in the amount of up to the average monthly income (up to 2 times the average monthly income - for managers of organizations).

Is this beneficial?

Considering the amounts provided by banks, repayment terms and interest rates of an overdraft, it is best to compare it with a “card” consumer loan. The loan amount in both cases will depend on your salary; However, when applying for a consumer loan, you can count on a more significant loan. Interest rates on consumer loans are equal to or higher than on an overdraft, and they must be paid on the entire outstanding loan amount. It is also important that no collateral or guarantee is required to obtain an overdraft.

So, explicit advantages overdraft before a consumer loan can be called:

ease of receipt - to open an overdraft you just need to visit the bank and provide a salary certificate (not always necessary); In addition, some banks are ready to credit money to your account within a few hours;
interest is charged only on the actual debt, and not on the entire loan amount;
automatic repayment;
renewability - after the previous debt is repaid, you can use the overdraft again.

TO cons Overdraft credit may include:

a strict link between the overdraft limit and salary, and, accordingly, not very large amounts (compared to consumer loans);
short repayment terms - from 3 months to a year;
problems with loan repayment that may arise in the event of a delay in payment of wages or a decrease in its size.

If for some reason you were unable to repay the overdraft, the bank will apply penalties to you, for example, reducing the limit, increasing the interest rate, or terminating the overdraft loan.

Types of overdraft at Belarusbank

The bank provides three types of lending in the form of overdraft:

1. With a monthly repayment period - a limit is set not exceeding the amount of monthly income calculated for the previous 3 months, at 19% per annum;

2. With a repayment period of three months – a limit is provided for one year up to 200% of the monthly income for the past 6 months, at 19.5% per annum;

3. With a repayment period of six months - the limit is provided for a year and can amount to up to 400% of monthly income for the past 6 months, at 20% per annum.

Terms of use of overdraft

To apply for an overdraft service, the card account holder must first enter into an agreement with Belarusbank. The following documents are required:

passport, identification code;
certificates of income for the last three months or statements of income from the card account.

The requirements for the client to obtain an overdraft loan are simple - age between 21-60 years and work experience at the last place of work for at least 3 months.

Advantages and disadvantages of overdraft

Overdraft advantages:

the interest rate on an overdraft is accrued only for the amount actually used, and coverage of both the loan itself and the accrued interest on it is made automatically when funds are credited to the account;
the overdraft can be used repeatedly, subject to its repayment;
An overdraft at Belarusbank has no intended purpose and is issued non-cash (invoice, transfer).

Disadvantages of overdraft:

strict linking of the limit to salary, which means small (compared to consumer loans) loan amounts;
short-term repayment (3-12 months).

Hello, friends!

We continue to improve our financial literacy and at the same time improve our English. Today the foreign term “overdraft” is next in line. Let's find out its meaning, learn to understand and not be afraid.

The number of bank card users is growing every year. Among them are students, pensioners, and even children. Why? It's convenient, practical and safe compared to a wad of money or a mountain of coins in your wallet. We are increasingly using bank cards to receive earned money, make transfers, withdraw cash and pay for goods and services in stores and on the Internet.

Banks are trying to support our desire to use credit cards. After all, solvent clients are the main source of profit and the raison d’être of the financial and credit organization itself. Banks compete with each other, lure us with new banking products and make offers that are difficult to refuse.

We have already dealt with the concept, types and conditions of using debit and credit cards. We learned what, for example, cashback and overdraft are. It is the latter that I want to dwell on in more detail today. Not everyone likes to use credit, but not everyone suspects that they can become a debtor to the bank even without borrowed money. How is this possible? Let's figure it out.

What does the term “overdraft” mean?

The foreign word “overdraft” translated from English means “overspending”, “excess of credit”. We see the familiar word credit, so we think that it applies only to those who like to live on credit. This is not entirely true. An ardent opponent of other people's money can also encounter an overdraft. Reading reviews from bank card holders, I was convinced of this. But first things first.

An overdraft is a short-term loan that is provided by a bank under a bank account agreement to cardholders (usually salary cards). For example, when you do not have enough personal funds to purchase any goods, the bank will be happy to provide the missing amount. But under certain conditions, of course.

The Civil Code of the Russian Federation (Article 850) indicates that if a bank makes payments from a client’s account when there is no money on it, then it thereby gives him a loan with all the ensuing consequences. The loan is issued for a certain period and is not free. This also applies to overdraft.

This raises fair questions: “Do I need an overdraft?”, “How to connect?” and “How is it extinguished?” The answers to them depend on its type and the bank providing this service.

Kinds

There are:

allowed,
unauthorized (technical) overdraft.

Let's look at them in more detail.

Permitted overdraft

An authorized overdraft is activated upon the personal application of the cardholder. It is provided within the limit set by the bank and at a certain percentage. These conditions differ not only between different banks, but also among different clients of the same financial institution.

Overdraft limit– this is the amount that a bank client can have if there is a lack of own money in the account. It is calculated for a specific person, based on the amount of funds that pass through his card, his credit history and some other factors.

Bank interest rates also vary. For example, Sberbank has established the following:

20% within the cash limit,
40% – fee for late repayment,
40% is a fee for exceeding the limit, but only by the amount of this excess.

Attention! Sberbank does not connect the overdraft service to all cards, but only to debit (salary) cards. But, for example, if you are the owner of “MIR Classic”, “MIR Gold”, “MIR Premium”, then an overdraft limit is not provided. The full list can be found on the bank's website.

In my article about I dwelt in more detail on the issues of tariffs, conditions for receiving and using them. If you haven't read it yet, catch up.

The following conditions apply at Tinkoff Bank:

The service is activated at the initiative of the bank and with the consent of the cardholder.
If you borrowed no more than RUB 3,000 from the bank, there will be no overdraft fee (provided you repay on time within 25 days).
If the loan amount was from 3,000 to 10,000 rubles, then the bank will take 19 rubles. in a day.
From 10,000 to 25,000 – 39 rubles. in a day.
Over 25,000 – 59 rub. in a day.
The fine for late repayment is 990 rubles.

These conditions apply to debit cards; for credit cards, only a technical overdraft is possible.

Read about the terms of use and pitfalls in my article. It can be very useful. Especially if you are on the way to choosing the optimal means of payment.

Unauthorized overdraft

An unauthorized or technical overdraft can occur even if you have never taken out a loan. And this often becomes an unpleasant surprise, which results not only in the occurrence of debt, but also in the accrual of interest and fines for non-payment. To avoid this, you need to know the common causes of debt:

Exchange difference. This case may arise when you pay with a ruble card abroad. Due to the nature of the banking system, funds from the account are debited after a few days. If during this period the exchange rate has changed sharply, then you can go into the red if there are insufficient funds on the card.
Payment of mandatory payments. For example, bank commissions.
I will comment on this case using my own example: once a year, in May, a service fee of 450 rubles is automatically deducted from my card. I usually withdraw from the card all the money received on it. Result: in May I went into minus by 450 rubles, i.e. a technical overdraft occurred.
Technical error of the bank. For example, a double credited amount or, conversely, withdrawal of the same amount 2 times. The bank notices the error and corrects it. But the client may not have money in his account, so again it’s a minus.

Avoiding technical overdraft is easy. He who is forewarned is forearmed. If we know about the potential possibility of going into the red, then it is enough to keep a minimum reserve of money on the card or constantly monitor the account status in order to pay off the debt on time. Banks often provide a grace period (usually a month), during which we can repay the entire amount of the debt without interest.

Connection conditions

Let me remind you that overdraft is activated with the client’s consent. Sometimes this service is automatically included in the bank account agreement. Therefore, I never tire of repeating that we carefully read all the documents and ask about any ambiguities. There is a signature in the agreement - it means that we agreed with all the bank’s requirements.

The conditions for connecting to an overdraft service in banks are different, but here is an approximate list of documents that may be needed:

Application for connection.
Borrower's questionnaire on bank letterhead.
Passport.
Another document confirming your identity (for example, SNILS, Taxpayer Identification Number, driver’s license).
Certificate of income (not all banks require).

As you can see, the set of documents is minimal.

Since the bank agrees to share its money with us, it is understandable that it makes certain demands on potential borrowers. Among them may be:

Having a permanent residence permit and living in an area served by the bank.
Having a permanent job and work experience.
Having an account through which funds regularly flow.
Clean credit history.

This is why overdraft is actively connected to salary cards. Often banks themselves call the client and offer this service. Here it would be appropriate to explain how a debit card differs from an overdraft card.

Remember! When you pay with a debit card, you control only your money. And not a penny more. If you have activated an overdraft service, you can borrow the missing amount from the bank. But this is no longer yours, but someone else’s money that needs to be returned.

An overdraft is a short-term loan. Its terms vary from 6 months to 1 year. During this time, you may lose or change your job, move, etc. Therefore, banks require that the contract be renegotiated periodically. This way they reduce the risk of non-return of the money provided to you.

How does an overdraft work: differences from a loan

This service works exactly the same as any loan. I borrowed money, which means that after some time I have to pay it back and pay interest for using someone else’s money.

Although an overdraft is a type of consumer loan, there are still differences between them.

Comparison options	Credit	Overdraft
Loan terms	Varies depending on the borrower’s creditworthiness and type of loan.	Only short-term loan (in most cases up to 1 year).
Amount of credit	Calculated after a thorough analysis of the borrower's solvency. Not only his monthly income is taken into account, but also the income of family members, property owned, etc.	It is calculated based on the monthly receipts of money on the card.
Frequency of payments	Periodically (usually once a month) throughout the loan term.	The next time money is received on the card, the full amount of the debt is immediately written off.
Terms of issue	A set of documents confirming your solvency. Collateral and guarantors are often required.	Minimum set of standard documents. No collateral or guarantors. Quick decision-making about connecting to the service.
Terms of use	The entire requested amount is issued at once, which is repaid in installments depending on the terms of the contract. To renew the credit line, you must contact the bank again.	The loan is revolving as it is spent and repaid.
Interest rate	Individual for different types of loans, terms and conditions of repayment, and the solvency of the borrower.	Same for all card holders with overdraft. As a rule, higher than on a loan.
Receipt speed	It takes time, because the bank makes a decision only after analyzing the borrower’s creditworthiness.	If you make a positive decision to connect the overdraft service, you can use money at any time of the day or night.

The advantages of overdraft, or what it gives to a competent user

Traditionally, I will consider all the advantages and disadvantages of a card with an overdraft.

Advantages:

This is a non-targeted loan, so you can spend it on anything.
The amount is constantly renewed. There is no need to go to the bank and apply for a new loan. The main thing is to repay on time.
There is no collateral or guarantors.
Interest is charged only on the amount you borrowed, not on the entire available limit. If you do not use an overdraft at all, then no interest is charged.
You can use the money at any time, regardless of bank opening hours.
You can cancel the service at any time.

And, of course, the disadvantages:

With all the availability of money, we must not forget that this is a loan. Repayment is mandatory and inevitable.
Interest is accrued daily, and the amount is repaid in one payment, automatically when money is received into the account.
You have to renew the contract often (usually once a year).
Credit limit (usually does not exceed monthly account inflows).
High interest rates on loans. In this way, the bank compensates for its risks.
The ability to go into a technical overdraft without knowing it.
There is a great temptation to get carried away with easily accessible money and lose control over expenses.

How to disable overdraft

To refuse this service, just write a statement about it. The contract will be terminated if there is no debt to the bank.

Please note that if you change jobs, it is not enough to simply throw away your previous employer's salary card. Contact the bank or check yourself to see if there is any debt. Otherwise, you may receive an unpleasant surprise in the form of accrued interest and penalties for late repayment of the debt.

Some banks practice the impossibility of disabling overdraft. This must be included in the contract. In this case, when concluding it, you can specify a zero limit on receiving money.

Conclusion

Everyone chooses for himself what kind of money he will live on, his own or borrowed. There is no need to be afraid of overdraft, but you need to understand how to use it so as not to drive yourself into a debt hole. Keep your finger on the pulse of your finances at all times. Then you will be able to afford a little more than you currently have. Agree, this is sometimes vitally necessary.

I would be glad if you supplement the article with your thoughts on this matter in the comments. Or maybe you have interesting cases from your life? They will give readers the necessary experience and provide invaluable assistance.