Our guide today will focus on how Absa overdraft work in South Africa.
We will begin by briefly discussing what an overdraft is.
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What Is An Overdraft
This is a debt taken for emergencies and short-term borrowing.
You can access the personal loan when you need extra funds.
You have to manage it like any other debt to ensure that the costs do not get out of hand.
We will now show you the requirements to get an Absa overdraft in South Africa.
What Is Needed
Below are the important requirements to get an Absa overdraft:
- You need to be eighteen (18) years or older
- A cheque account into which monthly income is paid
- A regular monthly income of at least Two Thousand Rand (R2 000)
- A valid South African ID or smart card
- Proof of residence and income not older than three months
The documents should be in their original forms.
These are the requirements for a quick loan.
Now that you know the requirements, we will show you exactly how the Absa overdraft works in South Africa.
How Does Absa Overdraft Work
You can get a quick loan from your check account for your unplanned expenses.
You have to make a regular deposit into your cheque account to keep the account updated.
The repayment plan is usually very flexible.
You need to pay a once-off initiation fee of up to R1 207.50 on a new facility and a monthly service fee of R69.00.
You will be charged a monthly interest on the portion of the overdraft limit that you have used.
The personalized annual percentage rate is up to a maximum of 10.5%.
You will pay an estimate of R15 000 at an interest rate of 15% per month if you have used R100.
You can opt for a credit protection plan that covers you in case of death, critical illness, disability, or loss of income.
This is how Absa overdraft works in South Africa.
How to Apply For Absa Overdraft In South Africa
We will now show you how to apply for the overdraft.
If you are an existing Absa customer, just log in to your online account and click apply for an overdraft.
If you are a new Absa SA customer, you can take up a checking account and apply for a quick loan.
You can also visit the nearest Absa branch to apply for the same.
Reach out to Absa customer care through 0860 100 372 and apply for the overdraft.
This is all to know about how Absa overdraft work in South Africa.
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