In today’s guide, we will briefly discuss the Absa overdraft in South Africa.
An Absa overdraft with your cheque account could be the answer to all your cash problems.
An overdraft gives you access to additional cash to cover any unplanned expenses that may arise.
We will show you the qualifying criteria for this loan.
Qualifying Criteria For Absa Overdraft
Below are the requirements for Absa overdraft:
- You have to be 18 years or older
- Provide a valid South African ID or passport
- Earn a regular monthly income of at least R2000 per month
- A cheque account into which your monthly income is paid
- Provide your attest payslips or three months bank statements
- You must provide proof of address not older than three months
This is the qualifying criteria for overdraft in South Africa.
Now that you know the qualifying criteria, we will show you the benefits of this revolving credit facility.
This credit facility is a revolving facility and will be reviewed every year.
It is easy to track and manage transactions since the facility is linked to your cheque account.
The overdraft will help you to maintain a good credit history by avoiding debit reversals due to insufficient funds.
The facility also ensures timely payments are made, and you are advised to avoid late payments as they attract penalties.
You will only pay interest for the credit you use.
You can get an optional credit protection plan to protect in the event of death, disability, terminal illness, or loss of income.
These are the benefits and features of the Absa overdraft in South Africa.
Credit Protection For Overdraft Facilities
We will now show you how the credit protection plan benefits you.
The credit protection cover has a limit of R150 000.
This Absa plan will pay a monthly amount equal to five percent (5%) of the average outstanding balance on your overdraft if you become temporarily disabled or unable to earn income.
You can make multiple claims for both temporary disability and loss of income.
The outstanding overdraft will be paid off in the event of permanent disability, critical illness, or death.
Plan A covers death, permanent and temporary disability, critical and terminal illness, and loss of income.
Plan B does not cover loss of income, so if you are earning income, plan A will be used.
This is all you need to know about Absa overdraft in South Africa.