Overdrafts mean withdrawing/using more cash than is in your account. This is done so by obtaining formal permission from the bank by agreeing to an overdraft limit and time period after which the loan is to be settled in full.
At ABSA, there are three ways in which the overdraft facility can be used. Under the Standard scheme, the overdraft can be obtained for a 12 month period after which it is reviewed by the banking institution. The Reducing scheme allows for an overdraft limit which is only replenished once the difference is settled while the third version works like a short term loan and has to be settled after an agreed period of time has passed.
This entry was posted by loans on February 3, 2013 at 9:23 pm, and is filed under loans. Follow any responses to this post through RSS 2.0.
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