Credits in the overdraft form
Overdraft is one of the short-term (up to one year) lending types. It is provided to the Client within the established limit by paying his payment documents from the current account if there is no positive balance on it. It is used by the Client to cover the temporary gap in the cash flow, the increase in working capital to pay for services and goods in connection with business growth or financing unplanned expenses.
The overdraft limit is defined based on the Client's needs for current payments, and it is set depending on the specificity of its activities, stability and the amount of cash flow to the current Bank accounts.
The main advantages of using “Overdraft” credit for a client:
- It is a stable and reliable source of resources for timely and uninterrupted settlements with partners.
- There is a possibility to receive tranches without preliminary agreement with the Bank.
- A speed of payments: lending is carried out from the current account using the electronic banking system PIB-Online, which ensures fast processing of payments.
- Minimization of interest costs: in case of overdraft repayment on the day of arrears, the interest for using the loan is not applied.
- Automatic loan repayment due to daily incoming payments to the Client’s current account.
This product allows the Bank's clients to perfectly manage their cash flows, timely fulfilling their duties to their suppliers, budgets and other contractors.
The amount of payment for using the loan consists of interest for the use of the loan and the commission. PSC “Prominvestbank” practices a flexible approach to setting interest rates for their clients. So, depending on the clients’ wishes, the rate can be:
- A fixed one, that is established for the entire term of the loan agreement and does not change depending on the number of days of continuous overdraft use.
- A differentiated one, which depends on the duration of continuous overdraft use: the shorter is the period of credit funds use by the Client, the lower is the credit rate.
The main characteristics of the product:
|Lending period||Up to 1 year|
|Securing||Guarantee of the business owners|
|Duration of continuous credit use||30 days (in some cases, possible 60 days)|
|Interest rate||Fixed one.
Differentiated one, set for the next periods:
31 days and more.
|The amount of the maximum overdraft limit, depending on the amount of net inflows to the client’s current account during the last 3 months||Up to 30% – for the Bank’s regular clients.
Up to 15% – for new clients of the Bank with following grow up to 30%.