Overdraft facility is the form of short-term credit, meant for meeting the working capital requirement of the borrower.
Last Updated Date: November 30, 2021
Nepal Credit & Commerce Bank Ltd. (NCC Bank) formally registered as Nepal - Bank of Ceylon Ltd. (NBOC), commenced its operation on October 14, 1996 as a Joint Venture with the Bank of Ceylon, Sri Lanka. It was then the first private sector Bank with the largest authorized capital of NRS. 1,000 million. The Head Office of the Bank is located at Bagbazar, Kathmandu. The name of the Bank was later changed to Nepal Credit & Commerce Bank Ltd., (NCC Bank) on 10th September, 2002, due to transfer of shares and management of the Bank from Bank of Ceylon, to the Nepalese Promoters. NCC Bank completed 23 years of its banking services on October 14, 2019 and recently entered into a historic merger with four Development Banks – Infrastructure Development Bank Ltd., Apex Development Bank Ltd., Supreme Development Bank Ltd. and International Development Bank Ltd. NCC Bank started its joint transaction from January 01, 2017 has now become one of the largest private sector commercial banks. At present NCC provides banking services and facilities to rural and urban areas of the country through its 120 branches, 85 ATMs and 4 Extension Counters scattered all over the country from Far West to Far East. The Bank has developed a corresponding agency relationship with more than 150 International Banks having a worldwide network.
Documents required for Overdraft Loan
Overdraft is a loan provided by a bank that allows a customer to pay for bills and other expenses when the account reaches zero. For a fee, the bank provides a loan to the client in the event of an unexpected charge or insufficient account balance. Typically these accounts will charge a one-time funds fee and interest on the outstanding balance .An overdraft is an extension of credit from a lending institution that is granted when an account reaches zero. The overdraft allows the account holder to continue withdrawing money even when the account has no funds in it or has insufficient funds to cover the amount of the withdrawal. Basically, an overdraft means that the bank allows customers to borrow a set amount of money. There is interest on the loan, and there is typically a fee per overdraft. An overdraft is like any other loan, the customer pays interest on the loan and, in the case of overdrafts, will typically have a one-time insufficient funds fee.
Under overdraft protection, if a client’s checking account enters a negative balance, they will be able to access a predetermined loan provided by the bank, and are charged a fee. In many cases overdraft protection is used to prevent a check from bouncing, and the embarrassment that this may cause. Additionally, it may prevent a non-sufficient fund fee, but in many cases each will type of fee will charge roughly the same amount. While the overdraft involve providing temporary emergency funds when an account unexpectedly has insufficient funds, it's important to weigh the costs. Overdraft protection often comes with a significant fee and interest .As with any loan, the borrower pays interest on the outstanding balance of an overdraft loan. Often, the interest on the loan is lower than the interest on credit cards, making the overdraft a better short-term option in an emergency. In many cases, there are additional fees for using overdraft protection that reduce the amount available to cover your checks, such as insufficient funds fees per check or withdrawal.