Overdraft loan from Halkbank: What is an Overdraft and How it works?

May 01, 2020 | 00:42 |5298

Loans today are “must have” among the services of any bank. After all, money has a tendency to end, while a desire has no limits. Since May 1, for its clients, Halkbank State Commercial Bank of Turkmenistan has introduced a new type of loan for Altyn Asyr salary cardholders – Overdraft short-term consumer loan. What is it and how it works? Bank staff will help us to clarify it. A Short-term means up to salary. A Consumer means for personal needs of individuals. A Credit – the money lent or borrowed under an interest rate. So, if you urgently need money for minor expenses or to buy something, Overdraft is a right choice. What is an Overdraft? “Overdraft” in English is “overspending”, a deficit in a bank account caused by drawing more money than the salary account holds. The overdraft loan procedure is as follows: the bank approves your overdraft application with a validity period of 6 months. Every month you can borrow from your future salary. Maximum amount of up to 40% monthly salary. Annual Percentage Rate (APR) is 16% (it is withdrawn every month from the amount spent). Example For example, your salary is 3,000 manat. And the expenses are distributed up to the last tenge. Suddenly, you need to buy new sneakers to the daughter, your son broke the bike, and he needs a new one. Besides, you are invited for a house-warming party of wife’s relatives and you need a present for the party. You are in urgent need for a money until your next salary. Then, as allowed overdraft, you can “overspend” 1200 manat from your salary card. Next month, your deposit will be not 3,000 manat, but 1,800 manat. 1200 manat “debt” will be automatically paid off when salary is deposited into your current account. APR 16% will also be charged off next month. It is calculated as follows: Money that is borrowed X 16% : 365 (days in a year) X 30 (days in a month). In total, if your salary is 3,000 manat and you spent 1,200 manat as allowed overdraft during month, the extra sum of 15.78 manat (including the borrowed amount), will be withdrawn from your account. Overdraft Key Distinctive Feature The key distinctive feature is that it is available for Altyn Asyr salary card holders issued by the Halkbank. This is a guarantee for the bank that the loan will be paid off on time. Other features: • Card Overdraft is enable for the standard Altyn Asyr salary card issued by the Halkbank. No additional cards or books required. • Loan period The loan is issued for 6 months. After this, the loan agreement between you and bank should be re-signed. • Creditworthiness Overdraft debt is automatically paid off at the expense of the salary deposit. Within a month. Very seldom – within two months. • Amount It should not exceed 40% of your salary. You can spend less, but not more. • Interest rate Overdraft Annual Interest Rate is 16%. It is calculated from the overdraft amount that you spent during the loan agreement period. Not from the maximum loan amount. • Record of service of a borrower Overdraft is available for those Altyn Asyr salary cardholder who as a client of the Halkbank State Commercial Bank has been working at his current position within at least a year. This is a bank insurance. How to activate the Overdraft service? At Halkbank State Commercial Bank of Turkmenistan – its head office or any of its branches. To activate the service, you should have your passport and its copy, a certificate of income, a copy of the work record, an application and consent to withdraw the Overdraft amount from your salary. The application will be considered during 10 days maximum. After, the operator will call you and inform on decision made. You will get SMS-notification on credit approval (if approved).

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