Overdraft financing is a cash management tool provided when payments executed from current accounts exceed the available cash balance. An overdraft facility enables customers to obtain short-term funding for their daily cash flows. Normally, the overdraft amount must be within the amount previously agreed with the bank.
The bank will approve the amount of credit based on the ability to repay and type of guarantee.
Charge interest rate according to the type of guarantee.
For cash deposits hypothecation, the interest will be based on the rate given of the cash deposit pledged plus 3.0% per annum.