Overdraft
Overdraft facility is the form of short-term credit, meant for meeting the working capital requirement of the borrower.
Overdraft facility is the form of short-term credit, meant for meeting the working capital requirement of the borrower.
Last Updated Date: May 16, 2022
Sunrise bank limited has provided its customers with up-to-date banking services and facilities under the motto Rising to serve. The bank was founded by renowned pioneers and its team is completely committed to creating a dedicated institution to provide all banking needs and services. The aim of this bank is to provide all kinds of individuals in every area, size of transaction and aspiration with the tailor banking service. It has approved the capital with regard to the capital structure of the bank: 5,000 million, Promoter Shares of NRs (51% of the paid-up capital), 1,140.70 million respectively. For public stock, which is 49% of the paid-up capital, 1,095.95 million. This bank is not only open for profit motive But also with the aim to be a friend who will take care of people’s financial affairs and support them. This bank is always in operation to ensure the customer's success.
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.
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