The Nedbank overdraft facility is a revolving credit facility linked to a current account that provides access to additional funds. It’s a short term borrowing facility that can help you manage unforeseen circumstances and cash flow constraints.
How the Nedbank Overdraft Facility works:
- There is no need to open a separate bank account.
- The Nedbank Overdraft Facility is available whether it’s utilised or not.
- A fee is charged for the service whether it is utilised or not.
- Interest is only charged on the portion of the overdraft used.
- There is no limit on the type of transactions clients can perform on their overdraft facility, up to their credit limit.
- Competitive interest rates are offered.
Who can apply?
- Absa Transactional current account holders
- Individuals with a valid South African ID
- If you can provide proof of residential address
- Individuals who can provide proof of income (such as a payslip)
- Individuals who can provide 3 months’ bank statements
- An affordability assessment will be done to see if you qualify.
Advantages of getting a Nedbank Overdraft Facility:
Bank overdrafts can help to facilitate better cash flow for businesses
As a business owner it’s important to maintain a steady form of cash flow. By making use of a business overdraft, a business may effectively improve cash flow.
It helps in maintaining a good track record.
As a business owner with a bank overdraft, this may help you to keep track of cash flow as well as how funds are flowing in and out of your company. This may help in terms of forecasting.
It helps to ensure that payments are made timeously.
Your bank account will always have funds available, so you won’t miss payments that are due.
There is less paperwork involved, compared to getting long term loans
A Nedbank Overdraft Facility allows for flexibility. One may take out an overdraft whenever required
It offers great savings in the interest cost when compared to a normal loan taken on a fixed interest rate