Overdraft Facility

Overdraft Facility

A short term loan that a bank makes to a business automatically if that business otherwise would face an overdraft. For example, if a business has $10,000 in the bank and withdraws $12,000 for its payroll, an overdraft facility is an automatic loan for the extra $2,000. The overdraft facility is payable on demand and, as with most loans, the business must pay interest on the amount borrowed.
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Fixed fees for borrowing through an overdraft will also be banned - calling an end to fixed daily or monthly charges, and fees for having an overdraft facility.
Fixed fees for borrowing through an overdraft will also be banned, calling an end to fixed daily or monthly charges, and fees for having an overdraft facility. Other changes include requiring banks and building societies to advertise arranged overdraft prices with an APR (annual percentage rate) to help customers compare them against other products.
part: Overdraft facility in the amount of HUF 800 million
Fixed fees for borrowing through an overdraft will also be banned - bringing to an end fixed daily or monthly charges, and fees for having an overdraft facility.
It means from April banks will not be able to charge higher fees for the 14 million who have no overdraft facility. These fees are often 10 times as high as payday loan charges.
According to the Chief Executive Officer of FCBL, Naiten Wangchuk, FCBL, with Nu 50mn approved, would now have a total of Nu 150mn to buy cardamom from farmers as the organization has also been instructed to use the overdraft facility of Nu 100mn that was granted last year for potatoes.
Fuliza, an overdraft facility that allows M-Pesa users to borrow small, short-term loans, was launched on January 5 through a partnership involving Safaricom, Commercial Bank of Africa (CBA) and KCB Group.
Swedish industrial group Volati AB (STO:VOLO) announced on Thursday the entering into a new loan agreement with Nordea for a revolving credit facility and overdraft facility.
India-based ICICI Bank has said that it is offering an instant digital overdraft facility for some of its selected customers.
13 ( ANI ): Private banking major ICICI Bank on Tuesday announced the launch of an instant overdraft facility for the Micro, Small and Medium Enterprises (MSME) customers in a completely online and paperless manner.
While SBI on Wednesday announced a reduction in interest rates by 0.15 per cent for its home loans up to Rs 75 lakh, ICICI Bank came up with the offer of an overdraft facility along with home loan.
With the completion of the refinancing, the new loan facility now consists of a 11 million Kuwaiti Dinars short-term loan and overdraft facility and a 140 million Kuwaiti Dinars long-term loan to be repaid in seven years.