Overdraft: a financial instrument of opportunity and temptation. What is an overdraft in a bank for individuals and legal entities

Obtaining a loan in the form of an overdraft (translated as “overdraft” means “short-term loan”) is common among both individuals and legal entities. Its main advantages are ease of repayment, duration of use of the open line, and the ability to receive money for a short time.

An overdraft is a line of credit that is opened to a specific current account (hereinafter referred to as the account). In fact, it is an opportunity to spend more of the balance on it. Using this banking product becomes more convenient when you issue a debit card, which is attached to a bank account with an open credit limit.

Overdraft - what is it in simple words, their types and basic concepts

When opening an overdraft, the lender sets a certain maximum amount of overdraft - the so-called limit. It can be used an unlimited number of times, that is, the overdraft is a renewable line - when a certain part of the limit is repaid, it is restored and again considered free for withdrawal.

To determine this value, when considering an application, the volume of average monthly receipts for the last few months is determined (depending on the lending conditions of a particular lender, this period ranges from 3 to 6 months). This volume does not include transfers between the potential borrower’s own accounts, or issuance of loans to other legal entities and individuals.

Sometimes, due to the peculiarities of payment systems, when funds are withdrawn from the borrower’s account in an amount that exceeds the balance (provided that credit overdraft was not opened) the so-called other type arises - prohibited (or technical). Such situations arise for several reasons:

• Delay in write-off for previous transactions. In this case, when making several payments by card over a short period (within a day, for example), part of the transactions “hangs” in the system in the “HOLD” status, that is, subject to write-off. This amount is included in the balance and can be written off again.
• The difference in exchange rates at the time of payment and the actual debit. This situation occurs when paying for goods in a currency that differs from the cash account currency.
• Error in crediting or debiting funds. In this case, the technical overdraft is closed manually by employees of the financial institution by correcting the transaction error.

Most often, such problems arise through the fault of the bank itself as a result of a temporary gap between the crediting and debiting of money, but the client has to pay for this violation.

The agreement for opening a cash account specifies the amount of the fine or penalty as a percentage of the amount of overspending (sometimes the fine reaches 50-60% of the amount of the debt incurred).

If such errors occur within one trading day, they are not taken into account and do not lead to the accrual of fines! Therefore, in addition to paying close attention to the balance on the card, if such a situation arises, the borrower must submit a written complaint to the card issuer.

It is beneficial for legal entities (especially trading organizations) to open an overdraft against collected proceeds. A prerequisite for receiving it is to deposit the proceeds into the account in an amount of at least ¾ of all receipts. In this case, the line limit may be equal to the monthly collection amount.

An analogue of such a line for individuals is salary overdraft. The role of collected proceeds in this case is played by guaranteed receipts of wages to the borrower's account. In this case, there is no need to additionally provide certificates about the amount of income, and the history of income and their regularity indicate the reliability and creditworthiness of the client. This type of lending is popular among bank employees and participants in salary projects.

In order to receive a positive decision on the application, the client must be served by a financial institution for such a period of time as is necessary to calculate the volume of receipts on the account (from 1 month to six months). The exception is the so-called " advance overdraft”, which is provided to the current account immediately upon opening it. A prerequisite for its issuance is the provision of current account statements from the organization that previously served the borrower. Most often, such products are provided in order to attract an additional flow of customers to cash settlement services (cash settlement services).

All of the above types of overdrafts are called continuous, however, there is another type of lending of this kind. Borrowing through an “overdraft” is very rare nowadays. with reset”, which involves periodic (once every 7-30 days) mandatory full repayment of the borrower’s debt. This condition is inconvenient, first of all, for the client and reduces the amount of interest paid, reducing profitability.

Receipt procedure

In order to arrange an overdraft, it is necessary, of course, for the client to have an open current account, which receives the bulk of all incoming payments. To open an account, you will need an identity card of the client - an individual or a set of legal documents of the organization: documents confirming the right to sign and a card with samples of the legal entity's seal. If a credit limit is opened for an account, you may additionally need:

• Certificates about the absence of delays in tax and other obligatory payments, about open current accounts in other service organizations, the absence of debt in them and file number 2 (unpaid claims) for legal entities;
• Statements from current accounts of previously servicing financial organizations (when opening an advance overdraft or if the current account was opened for too short a period);
• Second identification document;
• Documents for existing property. Most often, lenders do not require collateral (no surety or collateral is required), but in order to reduce the interest rate, increase the maximum amount, and as additional confirmation of solvency, such documents can be provided.
• Certificate of income (if the client is not “salary”).

To receive an overdraft, the client must meet the following conditions.

For individuals and individual entrepreneurs:

1. Registration is permanent or temporary in the territory of the bank’s presence.
2. Positive credit history (the history of lending as an individual matters).
3. Continuous work experience of more than 1 year and period of employment at the last place of work of 6 months (data may vary depending on the conditions of a particular lender).
4. Age from 21 (in some cases - from 18) years.

For legal entities:

1. Use of cash settlement services for at least 6 months and the presence of turnover on the current account (with the exception of advance overdraft).
2. Positive credit history.
3. Providing a certificate of turnover on current accounts in other banks (transfer of credit turnover may be required).
4. Sometimes - the period of validity on the market is from 6 months (otherwise the organization is considered newly formed and the loan parameters are calculated differently).

Overdraft price parameters

Review of an application for an overdraft takes from 1 day to 1 week. The maximum amount, depending on the degree of confidence in the client and the request, can range from 5 to 70% of the average monthly loan turnover. Overdraft rates vary from 15 to 50% and are constantly changing due to the revision of the Central Bank's key rate.

Deposits and guarantees are most often not required. Sometimes, if the borrower is heavily indebted, guarantees from the founders of the borrowing company are required as collateral.

Some credit institutions (for example, BANK AVANGARD) set a floating rate depending on the period of continuous debt (the longer it is, the higher the rate), and also charge an additional commission for withdrawals from ATMs.

The peculiarity and advantage of an overdraft is the accrual of interest only on the actually used loan amount.

If its value is 100,000 rubles, and the actual principal debt is 1,000 rubles, then interest will be charged on 1,000, allowing for significant savings.

What is more profitable: overdraft, credit, line or card?

Let's look at the main pros and cons of various types of lending in the table below:

Repayment of urgent and overdue debts

Closing an overdraft is different from a regular one-time loan and is often unclear to the user, since the amount of debt is constantly changing, and, unlike a loan, the borrower does not receive a fixed payment schedule.

In addition, the procedure occurs automatically after receipt of the borrower’s account and does not require writing applications or any actions on the part of the borrower. However, there are some nuances that you need to know when receiving this type of loan.

1. The amount of actual debt is distributed over the period until the end of the contract.

For example, on January 1, 2015, a client was issued an overdraft of 100,000 rubles for 12 months at 20% per annum. Repayments occur no later than the 25th of each month.

10,000 /12 months + interest accrued on the balance for the use of funds.

2. All receipts are written off to the account.

In our example: on January 5, funds in the amount of 7,000 rubles were credited to the account. From this amount the following will be paid:

• interest for using a loan in the amount of 10,000 for 3 days (from January 2 to January 5): (10,000 / 12 months) * 20% / 365 * 3 days = 1.37 rubles

• the principal debt is repaid in the amount of: 7,000–1.37 = 6,998.63

• actual debt balance: 10,000–6,998.63 = 3,001.37

• monthly payment: 3,001.37 / 12 months = 250.11 +% for the period

3. Despite early repayment, on January 25, funds must be received in the amount of the monthly payment calculated above, otherwise the amount will be transferred to the accounts of overdue debts, and fines and penalties will begin to accrue on it. Internal bank documents provide for separate accounting of overdue interest and overdue principal (250.11 in our example).

The procedure for writing off overdue payments is prescribed in the regulations of the Central Bank of the Russian Federation and provides for the following procedure for writing off upon receipt of the borrower's account:

• Penalties stipulated by the contract (for example, a one-time fixed fee for the occurrence of delay).
• Penalties that are charged on overdue interest for using a loan.
• Increased interest charged on overdue principal.
• Overdue interest.
• Overdue principal debt.
• Interest payable in the current period (not overdue).
• Current principal (not past due).

When depositing money for repayment, it is necessary to take into account the size of the current arrears in order to repay it in full.

Benefits of overdraft for small businesses

A peculiarity of small enterprises is a limited budget, especially at the stage of active development and establishment of a business. It’s difficult to get a “start-up” to start a business in the current economic conditions; lenders have strict requirements for the organization and require.

Video - overdraft on a current account:

The borrower will also be required to strictly adhere to the parameters specified in it (especially the volume of revenue and profit). As an additional guarantee of loan repayment, you will need to provide a guarantee or collateral (the best option is real estate, which small businesses simply do not have).

Overdrafts in this case help not to overpay for a loan that may not be useful (as is the case with a one-time loan), as well as to minimize the damage from cash gaps, and maintain continuity of payments to suppliers and other counterparties even if there is a lack of funds.

Overdraft lending is an easy way to get small funds for a short period.

If a company or individual needs a large amount, and early repayments are not planned, it is more profitable to issue a line of credit or a one-time loan. In this case, with the provision of security and a slightly longer period for consideration of the application, the overpayment for using the loan will be lower.

Video - in what cases is overdraft more profitable for entrepreneurs:

Information about what an overdraft is can be useful in case of an urgent need to receive funds. At some moments, on the contrary, this function creates some interference. If there is no need for additional foreign currency resources, the holder of a salary card must constantly maintain a certain limit on it. When agreeing to such a program, you need to study the contract in detail so as not to overpay extra interest.

What is an overdraft at a bank?

The bank's overdraft service, often offered to individuals and legal entities, is a lending program with special individual conditions. Its features are as follows:

• transfer of funds to the client’s current account;
• the debt amount is written off regardless of the cash balance;
• the interest rate on the overdraft is regulated by the bank - it may be absent, accrued only in case of late payment, or vary depending on the balance;
• An overdraft, as a rule, provides small amounts for a minimum period - for a period of temporary financial difficulties.

What is card overdraft?

Cards with overdraft have become widespread. In most cases, they are assigned to the client’s current account, into which he receives his salary, or to a deposit account. How an overdraft works - the bank transfers to the client’s account the amount specified in the contract, which will be at his disposal for a certain period.

At the end of this period, the client is obliged to repay the spent funds and interest, depending on the terms of the agreement. If the client does not require additional funds, he may not spend them, maintaining the overdraft limit, or refuse such a service. At the same time, you need to remember how much you need to leave on the card - this is one of the disadvantages of such a banking product.

What is an authorized overdraft?

Typically, the available overdraft is calculated based on the income coming into the customer's checking account. Sometimes such a service can be automatically included in the client’s salary project. A certificate from work can serve as confirmed income. To apply for an overdraft, additional information may be required:

• availability of permanent registration;
• confirmation of work experience;
• no debt on other loans.

Overdraft limit - what is it?

In all cases, the provision of an overdraft is accompanied by a limitation on the limit of funds used. The limit is the amount that can be used by the client for personal purposes and must be returned within a certain period. In most cases, it is calculated as a certain percentage of the amount of money in the current account and their turnover. An additional condition for using an available overdraft may be a reduction in the limit when withdrawing money and an increase in it when replenishing the account.

How is an overdraft different from a loan?

Regardless of one function - issuing funds for the use of clients and their subsequent return with or without interest, there is still a difference between an overdraft and a loan. The following distinctive features can be distinguished:

1. As a rule, a loan provides funds at a fixed interest rate specified in the agreement, and an overdraft - without it in case of timely repayment of money. If the overdraft payment is overdue, then the interest on it can be much higher than the overpayment on the credit line.
2. An overdraft, as a rule, does not require proof of income, but also provides a much smaller amount for use than a loan.
3. The loan amount depends on the client’s solvency, and the amount of the overdraft depends on the salary coming to a specific account or the amount of cash turnover on it.

Why is overdraft dangerous for individuals?

Having access to a certain amount of money, a person can forget about repaying the debt to the bank. This is called a technical overdraft - debt when paying funds. In most cases, it appears when the available limit under an overdraft agreement is overdrawn. In this situation, in addition to the main overpayment under the contract, interest may be charged for late payment, which is several times more than the amount spent.

There are times when a client accidentally withdraws a larger than usual amount from his account, which includes funds provided by the bank. As a result of such actions, it is possible to get into trouble and pay an extra amount. Sometimes, when a new card is issued, an overdraft service is automatically connected to it, and if the client does not know about it, he can overpay a considerable amount in interest. Therefore, it is important to check all services assigned to a bank card. Taking an overdraft and forgetting about the requirement to maintain a limit on the account is a big danger for the client.

How to activate an overdraft?

Having understood the essence of an overdraft, the client decides whether he needs such a program or not. If the answer is positive, you should contact the bank branch to conclude an agreement. The procedure for connecting an overdraft may vary for each bank. In some cases it connects automatically. The available limit is calculated in a similar way - depending on the monthly income and turnover of funds in the account.

In most cases, only an identification document is enough, but the client may require some papers:

• work certificates;
• proof of income;
• account statements.

How to disable overdraft?

If there is no need, the overdraft service can be disabled. To do this, you should contact the bank to terminate the contract. One of the conditions for such action will be the absence of debt under this program. Different financial institutions have different conditions for providing such a financial product. They must be specified in the contract. If there is a condition that it is impossible to disable the overdraft, then when signing the agreement, you can specify a zero limit for the provision of funds.

No matter what the client chooses - a loan or an overdraft program, it must be taken into account that both banking products are associated with financial burden. Interest for using bank funds and the conditions for their accrual may vary, therefore, no matter how tempting the offer may be, it is important to remember what an overdraft is and what financial risks it may be associated with.

Today, several types of overdrafts are popular for legal entities and individuals.

Almost every bank is preparing to provide its clients with the opportunity to satisfy their short-term needs for a certain amount of money.

For example, you only need a couple of hundred rubles to pay for services or goods. With a bank card, you quickly pay and later reimburse the financial institution for the amount with interest.

The most popular types of overdraft are:

1. Salary– a loan attached to the client’s salary card;
2. standard (classic)– lending for its main activities;
3. advance– notification to the bank about interruptions in the circulation of funds;
4. technical– the ability to overcome temporary difficulties in providing a calculation of the expected account replenishment;
5. for collection– collection of proceeds in large quantities (over 75% of credit turnover).

To repay any type of loan, any amount of money that was credited to the borrower’s current account is counted. The interest withdrawn is usually quite high, but a so-called “grace period” is established during which interest is not collected.

The classic lending option is provided to the client within the limit pre-established in the agreement for the execution of payment orders, as well as payment of expenses.

Conditions of receipt:

• Work experience in one main type of activity for at least one year;
• The potential client has been using the services of a financial institution for settlement and cash services for the last six months, and also has zero turnover on the account;
• the minimum receipt of funds into the account must be at least three times a week, which is twelve receipts per month;
• the borrower must not have any outstanding orders or claims on the current account.

Limit:

The limit in this case is calculated using the formula L = T / 2. According to the formula, L is the overdraft limit, and T is the minimum monthly credit turnover on your borrower current account.

In this case, the minimum truncated credit turnover for a month is calculated in a special way. So, over the last three months, 3 maximum receipts are calculated from each loan turnover for one month.

Funds received from loans are not taken into account. Of all the truncated turnovers, the bank has the right to choose the month with the minimum turnover; it is used further in all main calculations as a base.

Interest rate: the average interest rate in this case is 14.5% per annum.

This is one of the types of loans that are attached to the salary card, hence its name. The agreed amount of overexpenditures can be used for any needs and there is no need to submit documents indicating the purpose of the expenses.

The interest rate is calculated for the funds actually spent and exclusively for the days the loan is used.

One of the main disadvantages of such lending is the small amount (no more than 1-2 salaries). Another drawback is the short refund period (within three months).

It is better to cash out the funds at the ATM of the institution whose services you have used, then the check will indicate the actual salary and the loan amount that you can afford.

The advantage is that you can use both cash and non-cash at any time of the day. The overpayment is reduced due to the fact that you use the service not for a whole year, but only for three months.

Conditions of receipt:

• The borrower is a regular client of the bank with a salary card that was issued in one of the branches;
• the employer transfers money to the salary card regularly;
• the amount is determined only on the basis of your salary;
• the interest rate will be higher than that of the target loan;
• interest will be charged on the amount used, and you do not have to withdraw the entire amount, but only as much as you need;
• Interest will be deducted only for the actual period of use.

Limit: no more than 1-2 monthly salaries of the borrower.

Interest rate: the average interest rate in this case is 15%-20% per annum.

This type of loan is provided to those borrowers who use the proceeds for 75% of the loan turnover. Such proceeds may be deposited into the account.

The contract period lasts 1 year, but it can be extended if desired. The validity period of the tranche is no more than 30 days.

Conditions of receipt:

• The borrower's period of activity is at least one calendar year;
• the client has regular and uniform receipts on all current accounts;
• guarantees from business owners are required, the total share of which is no more than 50%;
• presence of two regular customers.

Limit:

The amount of the limit in this case directly depends on the size of the borrower’s turnover, the number of its debtors, the activity of receiving payments, as well as product modifications. Today, the maximum amount that any Russian bank can offer is 50,000,000 rubles.

The limit is calculated using the formula L = I / 1.5. According to the formula, L is the limit, and I is the minimum volume of the client’s monthly income.

Calculating the minimum amount of the collected amount, the bank withdraws the 3 largest cash deposits over the last three months of cash receipts into the client’s account. Of all three calculations, the smallest option is selected.

Interest rate: the average interest rate in this case is 14.5% per annum, and the commission for opening a limit is 1%.

This is a loan provided to a client without a preliminary analysis of his financial situation. It is calculated by multiplying the coefficient (0.95) by the number of funds received into the client’s current account over the last three days. After the expiration date it closes.

Conditions of receipt:

• Providing certificates from the bank in which the client has accounts;
• confirmation of credit turnover for the last six months;
• confirmation that the borrower has no debts on loans from other financial institutions.

The borrower also submits an application for an overdraft, which describes the operation being carried out to facilitate the receipt of funds to the current account (the date of receipt of funds is indicated).

Additionally, copies of payment orders, agreements and documents are attached, which confirm the receipt of funds specified in the application.

Limit:

The limit is calculated using the formula L = I / 1.5. According to this formula, L is the limit, and I is the minimum volume of the client’s monthly income.

Interest rate: the average interest rate in this case is 15% per annum.

In addition to all this, technical overdraft has a number of features.

Among them are automatic debt repayment in the amount of the borrower’s credit balance on the settlement day; the client’s obligation to fully repay all debts at least once a month by crediting funds to the account; All interest is accrued on the amount of debt, which means that with regular accrual of funds, the borrower can save on interest costs.

It is worth noting that during the lending period, difficulties arise due to improper regulation of cash flows by dates and amounts. Another reason for the problems is the lack of necessary experience in concentrating all funds in one account in order to pay off the debt.

In case of failure to comply with the terms of the agreement, the credit limit is revoked in full, and additional fines are imposed on the client.

Such a loan is provided only to that bank client who has already proven that he unquestioningly fulfills all the requirements of the financial institution. To attract him to settlement services, the client is offered a loan.

Conditions of receipt:

When considering an application for funds, additional requirements may vary depending on the bank. In general. They remain almost the same:

• Having at least one year of work experience in one main type of activity;
• using the services of a financial institution for settlement and cash services over the past six months;
• the minimum number of funds received into the current account is at least 12 times a month (3 times a week);
• non-zero account turnover;
• no outstanding orders/claims to the current account.

Limit:

The limit is calculated in this case using the formula L = T (a)/3. Based on the formula, L is the limit, and T(a) is the minimum truncated credit turnover for the month on the borrower’s account minus all payments to repay loan debts and pay interest to creditor banks.

The overdraft minimum is calculated based on the loan turnover account. Bank employees are withdrawing the largest deposits into the account over the past three months. But, in this case, funds transferred to the account from accounts in other financial institutions are not used.

Then a month with minimal turnover is selected, and payments on credit debt, as well as interest payments, are withdrawn, as in a standard overdraft. Subsequent work with the client is considered after a period of 30 days (1 month).

Interest rate: the average interest rate in this case is 15.5% per annum.

When concluding an agreement with clients to issue cards to them, they already calculate in advance the possibilities for concluding an overdraft agreement in the future. They are offered repeated receipt of a loan within the limit that was agreed upon in advance. Let's face it, for many borrowers, as well as for financial institutions, this is a beneficial agreement.

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Many financial terms come to us from the English language and therefore seem incomprehensible and complex. However, if you delve into the topic at least a little, everything will become clear.

Knowing what an overdraft in a bank is is useful not only for students and professionals - every person who is otherwise connected with banks or has at least one plastic card needs to know about it.

This is necessary in order to be able to better manage your finances and not get into an unpleasant situation when you have to pay a fine for an unauthorized overdraft.

What it is

“Overdraft” in translation means “crediting in excess of the account balance.”

In other words, overdraft means provision of funds by the bank when the client does not have available funds.

An example of an overdraft can be considered in the case of a simple plastic card. Nowadays, almost everyone has a personal debit plastic card, onto which salaries, scholarships, pensions, etc. are credited. At the same time, an overdraft may be opened on some cards.

Sometimes a special application from the cardholder is submitted for this, but often banks themselves impose this service, issuing cards within the so-called. "salary projects". Therefore, sometimes holders do not even know that they have the opportunity to borrow in excess of the account balance.

An open overdraft means that when your own funds on the card run out, subsequent debits will be made from the bank’s funds, i.e. an overdraft will occur.

However, in this case, they will be charged interest. As a rule, this situation is not too dangerous, since it is assumed that funds will be received into the account in the near future - from the employer, the state or from other sources. And part of these funds will go to repay this loan.

However, if you managed to take out a significant amount through an overdraft (within the limit), and for some reason the money did not arrive, then serious problems may arise. Especially if you don't know about this situation.

Often ATM statements do not separate your own funds from borrowed funds, so it is easy to get confused in this situation.

How to keep track of your finances?

First of all, you should know exactly how much money you are receiving and when. To view your balance, you should use the ATMs of the issuing bank (i.e., the credit institution that issued the card).

Finally, if you do not want to control this process, and do not want to ever receive additional debits from your account, then the easiest way is to refuse this service.

Each cardholder has the right to refuse an overdraft by writing a corresponding application to the bank.

Its types

There are several types of its classifications. First of all, there is an overdraft for legal entities and for individuals.

In the previous paragraph we examined the situation with individuals. Now let’s take a closer look at providing an overdraft for legal entities and individual entrepreneurs.

This type of loan is quite beneficial for small businesses for the following reasons::

• no need for the client to enter into an additional agreement with the bank for the provision of funds (accordingly, speeding up the process of obtaining a loan);
• no need to conclude a loan agreement (credit relations between the lender and the borrower in this case are regulated by a standard agreement for settlement and cash services. The loan agreement itself is, therefore, only an addition to it);
• the opportunity not to overpay for the funds provided (if there is no need to use the entire limit, the client is not punished in any way).

Video - an option for legal entities in obtaining short-term working capital from the bank:

Overdraft also happens authorized And unauthorized. It is important for every borrower or plastic card holder to understand these concepts.

In the first case, this situation is also called permitted overdraft. The client, as a rule, is aware of the current situation.

The second type (unauthorized) is dangerous because the card holder has no idea about the occurrence of this situation. Let's figure out when this is possible:

• when you withdraw all funds from your card from a third-party ATM. The latter, according to its tariffs, can write off a commission, and the card will be overdrawn;
• when you pay for a purchase online in a foreign currency. This situation may arise due to changes in the exchange rate;
• when the bank writes off money for some service (for example, SMS notifications), and you forgot to leave funds for it, i.e. there are simply not enough funds on the card to pay for these services;
• technical failure in the store when paying for a purchase / double or erroneous debiting of funds. After the investigation, the money will be returned to your account, but it is unlikely that anyone will reimburse you for the amount of the commission.

Thus, when an unauthorized overdraft occurs, a negative balance results. However, permission was not received from the bank to receive funds.

Let us distinguish two types of unauthorized overdraft:

• provided for (this situation is specified in the contract);
• unforeseen (this possibility is not provided for in the contract) .

We list other types of overdraft:

• standard;
• advance;
• for collection;
• technical.

Conditions for receiving

In order to obtain an overdraft, an individual must write a corresponding application to the bank. Since, as a rule, such a service is available for a salary card, the bank does not require proof of income in this case, since it already has this information.

With legal entities everything is a little more complicated. In this situation The bank imposes strict requirements on the borrower, among which:

• the minimum work experience in this type of business activity must be one year;
• “term of stay” as a bank client – ​​at least six months;
• presence of non-zero turnover on the account;
• receipt of funds into the account at least three times a week;
• lack of account files.

An example of calculating fees for such a service

To calculate overdraft fees, you should know the following conditions:

• the actual period of use of funds within the limit;
• amount of debt;
• overdraft rate;
• number of days in a year.

In the case where the client has repeatedly used funds, i.e. the first time - for the amount X, the second time - for the amount Y (until the overdraft is repaid), the interest will be calculated in this way: first, the interest for using the overdraft will be calculated in the amount of X, and then Y. The sum of these values ​​​​will be the amount of interest by overdraft.

Let's look at this situation using a specific example.

The following conditions are given: the client used the overdraft twice in January. For the first time - 11.01 for 30,000 rubles. The second time - January 22 for the amount of 45,000 rubles. The client, according to the terms of the agreement, is obliged to repay his debt on the first day of the month following the month in which the loan was taken out. Thus, the debt must be repaid on February 1. The client pays the bank on February 1. Now let's calculate the billing period. It will be 22 days (from 11.01 to 01.02). Both dates are included in the calculation. The loan was taken out at 15% per annum.

We use the following calculation formula:

Accrued interest = (interest rate (year)/100/number of days in a year*term of use of the loan)*amount of debt.

For the first provision of funds in the period (from January 11 to January 22), the bank will charge interest according to the following formula: (15/100/366*12)*30,000=147.54 rubles.

For repeated provision of funds (from January 22 to February 1), interest will be accrued as follows: (15/100/366*11)*75,000=338.11 rubles.

Adding the two results, we get that the total amount of interest will be 485.65 (rubles).

Thus, the term “overdraft” appears to be much more complex than it actually is.

conclusions

Overdraft, or lending in excess of the account balance, is a modern service of commercial banks, which can be used by both individuals and legal entities. However, both of them (especially individuals) should know the specifics of providing this loan so as not to find themselves in an unpleasant situation.

Video - in what cases is it beneficial for business:

Russians now know a lot about loans. But the overseas word “overdraft” (also known as overspending) is not familiar to everyone. What is this loan product and who is it available to? Let's try to talk about this in simple words.

Overdraft - what is it?

Overdraft is a type of short-term lending that allows you to spend more money than is in your account. For example, in a store you don’t have enough money to pay for your desired purchase. Then the bank will automatically add the missing money to you, allowing you to create a negative account balance. In fact, this is a revolving line of credit for citizens - money can be borrowed an unlimited number of times and in any amounts, you just cannot exceed the established limit.

However, not everyone can take advantage of such a limit and not always. It is important that this service is connected to your bank card. Moreover, it doesn’t matter at all what kind of card it is – debit or credit; overdrafts can be set up on any card. The main thing is that receipts for it should be periodic.

The main difference between an overdraft and a regular consumer loan is that as soon as you have a debt (overspending on the card), any amount credited to your account will be used to pay off this debt. In a regular consumer loan, you pay a monthly fixed installment according to the repayment schedule.

Overdraft lending is available not only to citizens, but also to legal entities. Here limits are set regarding the expenditure of funds passing through the client’s current account. To register the service, an additional agreement must be concluded in addition to the Bank Account Agreement.

Overdraft is a non-targeted type of loan, which is very rare in lending to legal entities. With standard lending, they are limited in the directions of expenses and can spend funds only where it was agreed upon when issuing the loan. In addition, many loan products require the provision of a report on the intended use of loan funds. Here all this is irrelevant.

Types of overdrafts

There are 2 types of overdraft:

1. Permitted. This is the same loan for which you applied in good faith, and the bank approved the requested limit. In this case, you are using other people's money on a completely legal basis.

2. Unauthorized, which is often also called technical. Such overspending occurs without approval from the bank due to the peculiarities of the functioning of payment systems:

• changes in exchange rates - having paid in euros with a ruble card, after a couple of days you can go into an unauthorized “minus” due to rising exchange rates;
• unconfirmed transactions - when making a purchase, you focus on the free overdraft balance on the card, and later the funds are debited for a previously approved transaction;
• technical errors of the bank - for example, double debiting from the card (if the balance on the card account is less than the amount of the repeated debit, an overdraft occurs) or erroneous crediting of money to the account. In the latter case, returning the erroneous amount will also lead to overspending if the balance on the card was less than the refund.

Technical overdrafts occur infrequently, but they must be kept in mind. The cardholder must know what their own balance is in their account before using the card to make a purchase or withdraw cash. In some cases, the statement may include the available credit limit as a balance, i.e. overdraft, going into which can lead to unpleasant consequences: overdue debt to the bank.

For legal entities, the gradation will be slightly different. Here, over-limits cannot arise for technical reasons; all of them must be approved by the bank and documented.

There are also 2 types of overdrafts:

1. Unsecured - this type of lending does not require collateral. Such “overs” are issued most often, but for a period of no more than a year;

2. Secured. Here the loan term is slightly longer - up to two years, but the conditions are different. In this case, the possibility of overspending on the account is supported by a pledge of property or guarantee obligations from third parties.

Banks take real estate, securities, goods in circulation, rights to receivables, bank guarantees, etc. as collateral.

Conditions for providing credit to plastic card holders

The main condition for providing an overdraft is regular receipts to the plastic card account. This could be a pension, salary, etc. There are not many requirements for the client (they may differ slightly in different banks):

• registration in the region where the card is serviced;
• “unblemished” credit history;
• permanent employment.

To obtain appropriate approval from the bank, you need to submit an application for an overdraft and provide the necessary package of documents, which is established by each credit institution independently. Basically, they require a passport and any other document (SNILS, driver’s license), a salary certificate in form 2-NDFL or on bank letterhead. Some banks issue an overdraft without confirming your income level.

They easily replaced the salary certificate with a card account statement for the required period of time.

The term of the loan may vary, but generally these are loans up to a year. You have the opportunity to use the money provided for a whole year, but after this period the overdraft will have to be reissued.

The overspending limit is also an individual matter. It depends, first of all, on the amount of receipts into the account. In addition, each bank has its own maximum amount of overdraft funds, expressed as a percentage of the amount of receipts. For example, Sberbank sets a limit not exceeding 50% of average monthly income, while at Rosselkhozbank this maximum reaches 150%.

Perhaps the only disadvantage of an overdraft is its interest rate. As a rule, it greatly exceeds the level of interest on conventional consumer lending and starts at 30% per annum. But many banks here also accommodated borrowers halfway and established a grace period for debt repayment. So, if you return the overspent funds within a strictly specified period (usually from 30 to 60 days), then you will not be charged any interest at all.

On the other hand, given the short loan period and small amounts of debt, the overpayment, even taking into account the high interest rate, is not so high. If you express it in rubles, and not as a percentage. That is why many are accustomed to “intercepting” debt, while paying not such significant amounts.

Repaying overdraft payments, on the contrary, is a huge plus - you do not need to go to the bank or transfer funds with the help of intermediary organizations, paying interest to them as well. When the next amount of salary (pension, etc.) is received, repayment is made automatically. Moreover, first of all, the “body” of the debt is repaid (i.e. the overspending itself) and only then the accrued interest, and after all this - penalties and fines if you are late. Delays with this type of lending are extremely rare, because the next amount of income will certainly cover the debt, at least partially.

The difference between overdrafts and consumer lending

An overdraft is a loan that is easy to apply for, use and repay. This is where its similarity with ordinary “consumption” ends, and the continuous differences begin, presented in the table below.

Overdraft for legal entities

Overdraft for legal entities is provided for the purpose of replenishing working capital. That is, if the enterprise temporarily does not have money to pay for raw materials, goods, tax payments, etc. It is a preferential form of lending and is issued only to borrowers with good financial standing.

Why is an overdraft called a soft loan? This is due to simplicity in everything:

• in quenching;
• in use;
• in a short time for consideration of the application;
• the ability to take out a loan without collateral.

In order for a legal entity to apply for an overdraft, it is necessary to open an account with a specific bank and enter into an agreement for settlement and cash services. Overdraft lending is formalized by an additional agreement to the bank account agreement.

The following requirements are imposed on a potential borrower:

1. Constant turnover on the current account. If it has just opened, you will be asked for an official letter indicating the expected amounts of funds received and spent.

2. Stability of monthly turnover. The option “January – 500 rubles, February – million” will not work in every bank.

3. Lack of file cabinet No. 2 for the current account. It reflects the claims of third parties (requirements of the tax service, etc.).

4. Good credit history.

5. Good financial situation.

The credit limit is set as a percentage of the average monthly credit turnover on the account. This percentage is set individually in each bank. Turnovers are calculated for the last six months, rarely for 3 months.

The interest rate on overdrafts for legal entities is lower than on targeted loans. But in addition to it, the bank will take a commission for providing each tranche and servicing the loan account.

The loan term is up to 2 years, and the last tranche can be issued no later than 45 days before the closing of loan obligations. These terms are also set individually and depend on the conditions of a particular bank. For loans with a relatively small amount and a term of up to a year, collateral is not required.

A distinctive feature of loans in the form of “overdraft” is the requirement to maintain a certain level of credit turnover on the account. This means that the borrower must ensure monthly receipt of funds in the current account for the entire loan period at least in the amount established by the bank.

This amount is not taken “out of nowhere”, but is calculated using a formula that takes into account the actual amount of receipts. For failure to comply with this requirement, the bank has the right to suspend the issuance of the next tranche.

Debt repayment occurs in the same way as with bank cards of individuals. All proceeds are first used to pay off overdraft obligations, and any surplus is deposited in the account as a free balance. If there is enough money in the client’s current account to pay current payments, a tranche will not be provided under the overdraft.

Any loan must be taken wisely, and overdraft here is no exception. For legal entities, such lending is more of a lifesaver, but for ordinary citizens it can drive them into a real debt hole. Uncontrolled withdrawal of money from the card and the extremely easy repayment procedure greatly relaxes and dulls vigilance. Therefore, before using an overdraft, analyze all the pitfalls and avoid falling into a credit trap.