Salary overdraft

If  you are employed and want to have always a reserve of money to be used anytime you have such needs, the perfect solution is the salary overdraft.

Salary overdraft is a type of loan ‘attached’ to salary card. It does not have a declared purpose and does not need to be justified, and its interest is paid only for used amount and days.

Working mechanism of the overdraft (example)

You have a salary card. Salary account is supplied monthly with 3.000 lei. Bank has approved for you an overdraft limit of 1.000 lei.

According to this, the situation on the card is:
Total availabel amount – 4000 lei
of which

  • 3000 – own resources
  • 1000 – approved overdraft limit
     

♦ Situation 1

Customer uses on 5th of month 3.400 lei. From the card will be withdrawn 3.000 lei from own funds and 400 form overdraft limit approved by the Bank.

Card statement at 5th of the month:
Customer’s debt to the Bank - 400 lei
Available amount on the card - 600
*starting 5th of the month will be calculated the interest for used amount from approved overdraft (400 lei)

At the 31st of the month will be calculated the overall sum of the interest for used overdraft, as it follows: 400 lei * 24%/365*26 using days = 6,83 lei

At the 1st of the next month, the salary is paid (3.000 lei). 6.83 lei are paid as interest rate and other 400 covers the used overdraft of 400 lei (3.000 lei – 6,83 lei – 400 lei = 2.593,17 lei)

Card statement at the 1st of the next month:
Customer’s debt to the Bank - 0 lei
Available amount on the card - 3.593,17 lei: 1.000 lei is the overdraft approved by the Bank, and 2.593,17 lei own customer’s funds.


♦ Situation 2

Customer uses on 5th of month 3.400 lei and on the 20th of the month he withdraws once more an amount of 300 lei.

According to this,
Card statement at 5th of the month:
Customer’s debt to the Bank - 400 lei
Available amount on the card - 600
*starting 5th of the month will be calculated the interest for used amount from approved overdraft (400 lei)

Card statement at 20th of the month:
Customer’s debt to the Bank - 700 lei
Available amount on the card - 300
*starting 20th of the month will be calculated the interest for used amount from approved overdraft (300 lei)

At the 31st of the month will be calculated the overall amount of the interest to be paid for used overdraft, as it follows:

  • For first amount of 400 lei, the interest rate will be – 6.83 lei (400 lei * 24%/365*26 using days)
  • For the second amount of 300 lei, the interest rate will be – 0,98 lei (300 lei*24%/356*5 using days)

At the first of 1st of the second next month, the salary is paid (3.000 lei):

  • 6,83 lei – are paid as interest for first used amount of 400 lei
  • 0,98 lei – are paid as interest for second used amount of 300 lei
  • Other 700 lei covers the used overdraft

Card statement at the 1st of the next month:
Customer’s debit to the Bank - 0 lei
Available amount on the card - 3992,19 lei. 1.000 lei of which is the overdraft approved by the Bank, and 2.292,17 lei own resources of the customer.


♦ Situation 3

Customer does not use the overdraft. In case an overdraft was approved by the Bank, but not used by the customer, NO COMMISION and interest rate is applied for not-used credit.

IMPORTANT: The interest rate calculated on account balance does not cover the overdraft granted by the Bank. It is calculated on the amount of own customer’s funds from account.

Conditions for overdraft approval:

  • To be employee of a company that have already signed a Salary Project agreement with the Bank
  • Minimum period of 4 month of working in the company
  • Contract of employments with employer signed for a fixed period of time
  • To have at least one salary supply on the account
  • Present salary certificate and complete correspondent application.

In case you want benefit of overdraft, but do not meet all above conditions the first step is to convince your employer to sign with Bank a Salary Convention.

The benefits you receive:

  • No commission paid for credit analysis
  • No commission paid for overdraft withdrawn
  • Approved overdraft: minimum of 1.000 lei, maximum of 60.000 lei (up to 3 net salaries)
  • Validity terms in accordance with valid period of the card 
  • The debts are paid automatically at account supplying with salary

 

Additional information you can learn at any bank's unit.
Contactell Service 022 256-456