ABSA Overdraft On Your Cheque Account

Risks and uncertainties are common occurancy to business people let alone an ordinary person. But such dreadful scenarios can be dealt with in a short space of time. All you need to do is apply for a bank overdraft, such a move will help you to mend your problems and get into a better position. This financial facility is best employed for emergency related purposes, for example, if you need to pay for your children’s school fees which are higher than you expected and will take longer to get it paid.

An overdraft is meant for short term borrowing and emergencies only; it’s unfortunate you have to regard it as your spending limit and not as a last resort. Absa Banking Group Limited is one such financial services provider with an overdraft facility only designed for customers with cheque accounts. With this service, clients don’t need to go through the formal application processes required for a long-term loan.

At Absa Bank, clients are privileged to have access to three different overdraft options i.e.

• Standard – granted for a period of 12 months and reviewed annually

• Reducing – the limit on the overdraft is reduced on a monthly basis, until the full amount is settled

• Temporary – granted for a fixed period of time only and must be settled in full at the end of that period

Before applying for an overdraft, a client should confirm with the bank regarding the entire costs of the facility and make sure they read the bank’s terms and conditions for overdrafts. The Absa overdraft facility is found on an Absa Silver, Gold, Medical, Professional or Platinum Cheque Account.

Consumers earning a regular income of R3 000 qualify for an Absa overdraft. Below are some of the important aspects that you need to know about an Absa bank overdraft:

• You can withdraw money when the available balance on your current account is insufficient

• Standard overdraft granted for 12 months

• Reducing limit overdraft is reduced on a monthly basis until the overdraft is settled

• Temporary or bridging overdraft is granted for a fixed period

• Only pay interest on the amount used when you make use of the overdraft

An Absa overdraft can be accessed on ATMS, via debit order, point of sale (POS), cell phone and internet banking.