Product Guide: ABSA Personal Overdraft - Current Account
Absa Personal Overdraft for Current Accounts
Product: Personal Overdraft for Current Accounts
Arrangement Fees: ?
Monthly Maintenance Fees: R25
Interest: On Application
Unauthorised borrowing: R57
Professional Advice: Yes
Want a reserve of extra money available in your account should you need it? An overdraft on your cheque account could be the answer.
It can be easy to lose track of how much money is in your account when you’re busy and pay day can sometimes seem a long way away. An overdraft from Absa provides you with a safety net of additional money, up to a pre-agreed limit, to cover everyday expenses when there’s nothing left in your account.
Three different overdraft options:
A fixed facility with a limit that revolves and is reviewed each year. You can keep using the funds, up to your agreed overdraft limit, as long as you make regular repayments. At the end of your contract year, your limit is renegotiated.
A reducing facility with a limit that decreases as you pay it off each month. This is a good option if you know you’ll only need to borrow for a short while and prefer not to have a revolving limit.
An indefinite facility with a limit that revolves for an unspecified period. You can keep using the funds, up to your agreed overdraft limit, as long as you make regular repayments.
An Absa overdraft could be the right choice if you:
Would like a reserve of extra money available in your account should you need it
Earn a regular income of R2 000 a month or more
Only want to pay interest on the daily balance of your account
What you get
A short-term, limited credit facility available on your cheque account
Peace of mind, knowing that you can cover any shortfalls in your account or monthly cash flow, up to an agreed limit
Convenience, because your overdraft facility is granted for an agreed time period
Interest rates based on your individual risk profile
Interest that is charged only on the amount of overdraft you use each day
The ability to pay your loan off faster, as additional deposits are accepted as capital reductions
An affordable Credit Protection Plan to settle the outstanding balance if you die, become permanently disabled or get one of the dread diseases. A monthly amount of 3% of the total insured will be paid for a limited period if you are retrenched or temporarily disabled.
You need to have a minimum monthly income of R2 000 and a good credit record
You must either have an existing Absa Bank cheque account or be applying for one. Apply here
You must have a valid ID (as a South African citizen) or passport number (as a temporary citizen)
If you are married in community of property, you need your spouse’s consent to apply
If you meet these criteria, then all you need to do is apply online (if you are a new customer) or logon to your Absa Online and apply from here
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