If you have been searching, how does FNB overdraft work in South Africa?
You have come to the right place.
Besides, understanding how FNB overdraft works are important as you know how the limit is calculated at the latest and how to manage overdrafts, among other aspects.
You‘ll find this article useful because there is everything you need to know about FNB overdraft.
Whether it is about the FNB overdraft repayment period or what happens when you fail to repay the overdraft, name it, you’ll find what you are searching for.
How Does The FNB Overdraft Work
FNB overdraft works in a straightforward manner.
First of all, you need to have an active cheque account with the bank and apply for the overdraft.
If your application is accepted, the bank gives you a limit, and you can use the overdraft to pay bills or even withdraw.
After you have used the overdraft offered by the bank, your account balance becomes negative.
It means you have to pay the bank the money you have over withdrawn.
The bank doesn’t regulate how to use the overdraft.
You’ll get to repay the overdraft immediately after you deposit money into your account.
The overdraft is agreed to be paid within 30 days; thus, you are out to deposit money into your account to repay; otherwise, you’ll receive penalties.
How FNB Determine The Overdraft Limit
After you have applied for
FNB overdraft, the banks take time to evaluate and award you the overdraft to a certain amount.
The limit is determined or arrived after the bank through its calculator assessing your creditworthiness.
The calculator is also used to calculate the interest fee you have to pay after using the overdraft.
How To Manage The Overdraft
After you have approved for the FNB overdraft, it is important to manage it wisely.
More so, you have to manage how you will repay the loan.
There are additional expenses if you fail to repay the overdraft on time.
When you consistently fail to pay the overdraft on time, the bank may refuse you to access it.
Hence it is imperative to repay the overdraft consistently.
The bank may also revise the limit and incase or reduce based on how you repay after taking the overdraft.
The failure to repay the loan may prompt the bank to contact the loan recovery to come on behalf of the bank and get their money.
That is how FNB Overdraft work.
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