Before concluding an agreement with a bank for an overdraft service, you need to familiarize yourself with it. Managers often emphasize the beneficial terms of cooperation, but you also need to be aware of the pitfalls. Then let’s look at what an overdraft is in simple words and what its features are.

What does the term “overdraft” mean?

The essence of an overdraft is to provide a short-term loan on favorable terms. The key feature is the presence of a limit that the borrower can use when there are not enough own funds for the purchase.

Overdraft credit is available to individuals and legal entities. In the first case, this is a targeted loan that the borrower can use at any time and withdraw the missing amount. But for legal entities, a loan is provided in a non-cash form to an account so that the company can make payments on debts.

In times of necessary and sometimes untimely expenses, a salary overdraft will become a real salvation. Compared to other loans, the service is more affordable and profitable. For a financial institution, this is a less risky operation, because the overdraft on the card is tied to salaries and other payments that will sooner or later be credited to the account.

A bank salary overdraft opens automatically. The advantage is that you do not have to visit the branch and supplement the application with documents. Anyone who has a salary card can count on this type of service, and money is constantly received on it. The limit on the use of funds is small and when a salary is received it is immediately blocked. The overdraft amount depends on the salary received. You only need to pay for days of use. Regular customers can count on a low interest rate.

Technical overdraft is provided without control of financial condition. However, you will have to provide a lot of documents. This option is suitable for traders working on .

Classic overdraft is provided in the amount of a fixed amount. When drawing up the contract, payment orders and possible costs are specified. To qualify for such a loan you must:

• Have been cooperating with the bank for a long time;
• Have work experience of more than 1 year;
• Cash receipts must be regular - twice a month;
• No debt obligations on the account.

The amount is set in the amount of the monthly card replenishment, divided by two. Interest on payments is minimal.

Advance overdraft provided to regular customers who have a high credit rating. The conditions for receiving are the same as for the classic version. The size of the limit is set on average for the last three months of receipts. The decision on cooperation and provision of services is made within a month.

An overdraft for collection is provided in the presence of a guarantor, who must own 50 percent of the business. In this case, a regular client must work with the bank for at least a year. And the decision on the provision of the service is made only after a month. Otherwise, the conditions are the same - a clean credit history, constant deposits into the account, etc. important. So that the borrower uses income at 75% of the loan turnover.

What is an authorized overdraft

It is assumed that after the borrower writes an application, the bank must set a limit on the funds that the client can use. Overdraft limit, what is it? It is formed depending on the constant amount of income. Most often, this is an overdraft on a salary project - the amount is 30-50 percent of incoming wages. Once a cardholder spends everything on the card, they can go into debt. As soon as the salary arrives, everything will shut down again. For using this service, clients pay 20 percent per annum.

Providing an unauthorized overdraft

Unauthorized overdraft – when the client needs to spend funds in the account in excess of the established limit. In this case, other terms of cooperation come into play. Interest for using an overdraft increases to 60 percent per annum. Requirements for borrowers are becoming more stringent. If you fail to repay the debt within the specified time frame, the banking institution will impose a large fine.

There are situations when overdraft is technically possible:

• Due to a technical error by the institution. Double the limit amount could be credited to the account.
• With changes in exchange rates;
• For an unconfirmed operation. If the consumer previously made a purchase, and the money was written off after other financial transactions. Having familiarized yourself with the types of overdrafts, it will be easier to encounter similar situations. Overspending isn't common, but it's important to keep track of your money to avoid running into unplanned debt. Some banks issue transaction statements that already include the available credit limit.

A technical overdraft for legal entities is impossible, because all transactions with funds are approved and documented.

Regular receipt of money is the main condition for providing a card with an overdraft. A potential borrower must fulfill three important points:

• Having a good credit history;
• Availability of a permanent place of work, continuous work experience;
• Registration at the actual card service location.

After submitting a signed application, the bank begins to consider possible limits. Otherwise, each financial institution sets its own rules for receiving services.

Each bank has the right to provide its own list of required documentation. The classic option is a passport, an additional identification document, TIN, an application, a questionnaire, a certificate of income - a package of documents that will be required to issue a card with an overdraft. The grant period varies, but is most often twelve months.

In order to increase the volume of working capital, legal entities try to use not a loan, but an overdraft.

Firstly, the accounting department will appreciate it, because the overdraft does not require posting. Secondly, it is considered a preferential form of lending, which is provided to regular customers. A temporary solution allows you to purchase goods, make related payments, and then immediately cover all interest when funds arrive in your account. Legal entities must have a current account, the bank provides their cash services, and a separate agreement is drawn up for the provision of the service.

How does overdraft work? What are the differences from a loan

An overdraft on a credit card is issued faster, it is simple and has favorable conditions. To understand the differences, let's consider each option separately.

Credit terms:

• The term is determined by the size of the debt and the borrower’s ability to pay it;
• The debt must be repaid in equal installments every month;
• The loan amount may exceed your actual monthly income;
• The rate for using the service is agreed upon at the time of signing the contract;
• All money is issued immediately after all conditions are agreed upon and recorded on paper.

A bank card with overdraft is:

• The term of use of the service is maximum 2 years with full repayment of the debt every month;
• The loan amount cannot exceed the monthly income in the form of wages or pensions;
• The amount used is covered immediately upon payment of wages;
• Interest is paid for each day of use;
• Instant provision of funds after completing an application from a regular client of the bank.

The difference between an overdraft and a loan is the ease of registration, short-term use and a fixed amount.

Pros and cons of overdraft and what does it give to a competent user?

A debit card with an overdraft has its advantages and disadvantages.

The advantages include:

1. At any time you can get the necessary amount and resolve the issue with an unplanned purchase;
2. Interest is paid based on the actual amount of the loan;
3. You can use it regularly: after paying off the debt, take out the amount again and so on in a circle, but strictly within the limit.
4. An overdraft for a business is a good opportunity to speed up the rotation of funds, cover the payment of debts and not be left without work at an important moment;
5. When registering, you do not need to look for a guarantor;
6. You can disable the service at any time;
7. Lack of paperwork during registration;
8. An overdraft does not require posting in accounting, because it is not a loan at all. It will just be “-” according to the current account.
9. The bank will constantly remind you in messages about the need to repay the debt, so you will not forget the deadline for covering it.

Having tried the service in action, everyone finds disadvantages:

• The contract is concluded only for a year, then the service must be renewed again;
• High rate;
• Minimum repayment terms and amount within the limit;
• The amount is repaid in full and not in parts;
• Hidden payment when using funds, for example, for cashing out a fixed amount;
• Read the terms of the agreement, banks reserve the right to change the interest rate and reduce the payment terms;
• The user may not even know that the Internet overdraft is already connected, and the amount of wages doubled is displayed on the account.
• Credit trap - people eventually stop investing on time and the debt gradually grows.

Why is overdraft dangerous for individuals?

Overdraft for individual entrepreneurs and individuals is a real “provocateur” of debts. Having an additional amount in your account, sooner or later you start using it. A habit arises of going into a constant “minus” and over time the boundaries are washed away, the person is not able to make payments on time, the debt instantly grows.

At any moment, a person can use “easy” money and this drives the client of a financial institution into debt. The feeling of freedom and availability of funds causes excitement, which is why Western psychologists have long been using the term “credit addiction.”

For individuals, this is the main danger in using such a service. If you don’t lose your head and use it wisely, then the service really has its advantages.

How to disable?

When registering it and at the moment when the bank manager tells you what an overdraft is, no one talks about how to turn it off. To refuse the service, you must write an application and provide documents when visiting one of the departments of the institution.

Refusal does not entail any penalties. If something like this happens, you urgently need to go to court.

You can disable the service without leaving your home; it is enough to have a connection to Internet banking. Managing your account is easy from home. In your personal account, set a limit to the minimum amount so that it is impossible to use the funds. In case of emergency, you can remove the restriction on your own through your personal account.

• Technical overdraft is possible when replenishing your account from another bank. In this case, the funds are immediately withdrawn; often the bank does not have time to complete the operation and the limit can be used twice.
• Psychologists associate overdraft with “credit addiction,” so gambling people should be careful.
• For the service to be useful, it is important to monitor account balances and transactions performed. Feel free to visit the branch periodically and request an extract to compare receipts and expenses. When signing a contract, consider your financial capabilities.

A few days ago, information appeared on the Internet that the status of debit cards of Sberbank clients had changed to overdraft. The official position of Sberbank is that all debit cards, in fact, remain so, and Sberbank representatives associate delays and negative balances with such a concept as a technical overdraft. As they point out, this is a technical point that exists in all banks, regardless of their name or location.
The situation around Sberbank showed one of the most conflicting problems when working with payment cards - the formation of the so-called unresolved overdraft or, as it is also called, a technical overdraft.

What is overdraft.
To put it simply, an overdraft is an overspending. Overdraft is a type of lending. For example, you make a purchase in a store. There are 20 thousand rubles in your account, and the purchase price is 25 thousand. You make a purchase, but 5000 is an overdraft, this is the money that the Bank provided you, i.e. Using this service, you were able to purchase the item you liked even if there were insufficient funds in your account. Those. The bank will automatically provide you with the missing money, but your account will have a negative balance. To put it simply, this is a revolving line of credit for citizens. You can receive money repeatedly, in different amounts, but you cannot exceed the established limit.
Types of overdrafts.
There are two types of overdraft:
- Allowed overdraft. This is the same loan that you received from the bank, i.e. submitted an application, and the bank approved the limit you requested.
- Technical overdraft. This is the same overspending that occurs without your application due to the peculiarities of the functioning of payment systems.

Permitted overdraft.
In a simplified understanding for the average consumer, an overdraft is a special type of lending in which we get the opportunity to spend more on the card than is in our account at the time of payment for the purchase.
The legal regulation is based on the provisions of paragraph 1 of Article 9 of the Federal Law "On the National Payment System", which provides for the use of electronic means of payment on the basis of an agreement on the use of an electronic means of payment, as well as the provisions of Article 850 of the Civil Code of the Russian Federation, the norms of which establish the general rules for crediting an account. The most basic imperative rule is the existence of a contract. And then you need to analyze the regulations of the Central Bank of the Russian Federation and the internal rules of a particular bank.
In accordance with clause 2.7 of the Regulations of the Central Bank of the Russian Federation "On the issue of bank cards and on transactions performed using payment cards" dated December 24, 2004 N 266-P in the event of the absence or insufficiency of funds in the bank account when the client performs transactions using a bank account card, the client, within the limit provided for in the bank account agreement, may be provided with an overdraft to carry out this settlement transaction if there is a corresponding condition in the bank account agreement.
Thus, in order to use an overdraft you must:
1) Availability of a bank account;
2) The presence of an agreement concluded between the parties, which sets the credit limit and interest, as well as other conditions: grace period, penalties, etc.
As a rule, the conclusion of an agreement occurs through the mechanism of accession to the relevant rules. Such a mechanism is established by the norms of Article 428 of the Civil Code of the Russian Federation. Confirmation of the conclusion of such an agreement, as a rule, is an Application Form and a Receipt for receiving the card.
It follows from the above that without your consent, without the existence of a concluded agreement, there can be no talk of any overdraft, much less of any amounts of penalties and fines that cardholders write about in numerous forums devoted to this topic.

Technical overdraft.

This is a term that is not named in regulations. This is a situation where you overdraw on your bank card without having overdraft arrangements with the bank. The very name of the term suggests that overdrafts arise as a result of transactions and other operations on the account. There can be many reasons, but let’s look at the most common:
1) Write-off of payments for card and account servicing
2) Exchange rate difference, i.e. This is a situation when, for example, you make a purchase abroad with a ruble card on the eve of the holidays. At the time of purchase, there is enough money, but on the day of processing the incoming file, the exchange rate changed and as a result you went into the negative.
3) Multiple processing. As you know, almost all transactions with bank cards are carried out in two messages. The first is informational, the so-called request from the servicing bank and the response from the bank that issued the card linked to a specific account of an individual. This request is generated in the terminal of the bank where your card is currently located. Your bank reviews this request and provides a response. Next, the transaction is completed, you pick up your goods and leave. But the money has not yet been received into the account of the store where you made the transaction, so the store only at the end of the working day creates and sends to the acquiring bank (service bank) an electronic file - a register of payments. Next, this bank processes all the files and sends them to the settlement network of the international payment system, and from there a message arrives to your bank in the form of an incoming file, which serves as the basis for reflecting the transaction on your account. According to the rules of the international payment system, these files are sent 2-3 days after the transaction using the card.
However, sometimes, for some technical reason, not one, but two files are sent to the settlement payment system. And your bank debits the same amount from your account twice, which can cause a technical overdraft. This situation is called “multiple processing” and for it the rules of the international payment system even provide a special protest code, since such cases are quite common.
For example, you made a purchase for 5,000 rubles. There were 9,000 rubles in your account. The purchase information was sent to the payment network twice by mistake. 10,000 was debited from your card, which led to an overdraft in the amount of 1,000 rubles.

What are the consequences of a technical overdraft for a bank?

Firstly, in the Letter of the Bank of Russia dated June 30, 2009 “Answers and clarifications on some issues related to the application of Bank of Russia Regulation No. 302-P dated March 26, 2007 “On the rules of accounting in credit institutions located on the territory of the Russian Federation” " it is clarified that if the bank account agreement does not contain a condition under which the client has the right to receive a loan, in the event of insufficient funds in his account, the credit institution is obliged to ensure that the operation is carried out (including with the help of technical security measures) only in limits the balance of funds in the client's bank account. In the event of an unauthorized debit transaction from a bank account using payment cards (technical overdraft), the amount of debt must be repaid in accordance with the norms and deadlines established by Article 314 of the Civil Code of the Russian Federation. If this issue remains unresolved , then the amount of debt is written off from the account and applied to the credit institution for its expenses, and a reserve for possible losses on loan and similar debt is not formed by the credit institution. It should be noted that the Regulations on the Rules for Maintaining Accounting in Credit Institutions Located on the Territory of the Russian Federation (approved by the Bank of Russia on March 26, 2007 N 302-P), to which there is a reference in the letter, actually became invalid on January 1, 2013 due to with the publication of the Regulations on the rules of accounting in credit institutions located on the territory of the Russian Federation (approved by the Bank of Russia on July 16, 2012 N 385-P), which approved the new Rules), but this letter does not conflict with the new rules.
Secondly, assessing the technical overdraft and assessing its consequences for the bank, the Supreme Court of the Russian Federation in its Ruling dated November 25, 2014 N 5-КГ14-12 indicated that the relationship arising between an individual and the bank (in this case Sberbank OJSC) Russia"), the norms of the Law of the Russian Federation of February 7, 1992 N 2300-I “On the Protection of Consumer Rights” are applied, and therefore the service provided by the bank must meet the quality requirements, as well as the purposes for which it is usually used ( Art. 4 of the Law on Protection of Consumer Rights). The only basis for releasing a bank from liability is a proven fact of force majeure. But, according to the Supreme Court of the Russian Federation, a software failure is not a consequence of force majeure, that is, it does not relieve the bank of liability to the client for improper provision of the service. The withdrawal of funds from an individual's bank card with the formation of an unauthorized overdraft was qualified by the court as an illegal action of the bank, which entailed negative consequences for the bank's client.

Are penalties for unauthorized (technical) overdraft legal?

By virtue of paragraph 1 of Article 818 of the Civil Code of the Russian Federation, under a loan agreement, a bank or other credit organization (lender) undertakes to provide funds (loan) to the borrower in the amount and on the terms stipulated by the agreement, and the borrower undertakes to return the amount of money received and pay interest on it.
From the meaning of the provisions of the above-mentioned Article 819 of the Civil Code of the Russian Federation, as well as Article 10 of the Law on the Protection of Consumer Rights, it follows that if a bank agrees to provide a loan to a citizen, then it must be informed of the amount of the loan, the interest rate, the full amount , to be repaid by the borrower, and the repayment schedule for this amount. These conditions are essential and are subject to mandatory agreement with the client.
An unauthorized (technical) overdraft, an agreement on the possibility of providing which in the event of insufficient funds in the account by the parties to the agreement has not been reached, is essentially an additional loan. However, such a loan cannot be issued without agreement with the borrower of the essential conditions mentioned above. In addition, due to the very possibility of a technical overdraft occurring (including due to circumstances beyond the borrower’s control, for example, in the case of debiting funds from the borrower’s account in an amount exceeding the payment limit after several days from the date of the transaction on the changed in the direction of increasing the exchange rate), the use of funds in this case should be carried out on a paid basis within the framework of credit relations, and not entail the application of penalties, since the borrower exceeding the payment limit and the occurrence of an unauthorized (technical) overdraft is not a failure to perform or improper execution obligations to repay a consumer loan and (or) pay interest on the loan amount.
The courts proceed from the fact that an error on the part of the Bank in conducting an unauthorized debit transaction cannot be the basis for the occurrence of a technical overdraft (Resolution of the Second Arbitration Court of Appeal dated December 2, 2016 No. 02AP-9807/2016 in case No. A17-5262/20160.
From the above it follows:
1) Without an agreement there can be no overdraft.
2) If a write-off has occurred, notify the bank about it. No penalties can be applied to you for a technical overdraft.

Sberbank clients often have questions about the concept of overdraft. This service appeared on the domestic banking market relatively recently, so many users are interested in an overdraft from Sberbank - what it is, connection, features, and the ability to disable it. This will be discussed in the article.

Overdraft is a temporary loan service connected to a salary card. If available, you can use an amount greater than what is on the card, but limited by the limit. At the same time, each client has its own limit and percentage set by the bank depending on individual conditions. You can use the money at your own discretion.

At the moment, the service was provided only to (private entrepreneurs and corporate clients), provided that the company had an agreement with the bank on the provision of the service.

Overdraft is not available for debit cards.

Overdraft features

1. There is always additional money in the account for purchasing goods, paying for services and withdrawing cash. This money is provided by Sberbank under certain conditions and can often help out in a difficult situation.
   To use borrowed funds, you do not need to visit a bank branch and collect documents.
2. For using a loan you have to pay fixed interest. Otherwise, the money will simply lie in the account and wait in the wings. The system of issuing loans through an overdraft has some disadvantages:

• no grace period. After withdrawing part of the money or all the funds allocated by the bank, interest begins to accrue;
• if you do not return the required amount to your account on time, Sberbank will charge additional commissions;
• It is difficult to calculate your own financial capabilities and plan expenses.

How to find out whether an overdraft is enabled on the card or not?

In order to find out whether an overdraft is enabled on the card or not, you can ask representatives of the accounting department (HR department) of your organization or call.

How to activate an overdraft service

In most cases, additional funds are offered by Sberbank when you issue a card. As a legal entity (IP), you can contact a bank branch to activate the service for yourself or your employees. More details about the connection procedure can be found on the bank’s page.

To arrange this service, a bank employee first checks the solvency of the overdraft applicant. The guarantee is an active legal bank account or other means of confirming solvency, for example, a certificate of income from other sources.

Owners of salary cards may not confirm their solvency.

Disadvantages of the service

On social networks and on specialized platforms you can find a fairly large number of negative reviews about using an overdraft. It can be difficult for cardholders to understand the system of calculating interest and writing off funds in favor of Sberbank. The disadvantages of loans include some difficulties in disabling the service.

What is overdraft - video review

conclusions

Each cardholder has the right to independently decide whether he needs an overdraft from Sberbank? Sometimes clients, having signed a service agreement with the bank, do not specify the availability on the card. While receiving a salary and spending money, you may not notice where the money disappears. A call to the Sberbank hotline will help you figure this out.

You may find that there is not enough money in your account for some important purchase. In this case, people most often apply for a loan or loan. But you can also spend some of the money in excess of the balance thanks to the so-called overdraft.

On the one hand, this service allows you to use a debit card as a credit card with some restrictions. On the other hand, it has a number of its own features that are often forgotten. Therefore, #AllLoansOnline will help you understand the overdraft structure and tell you how to avoid problems when using it.

In essence, an overdraft is a certain amount by which you can spend money in excess of the funds available on the card. Banks offer this service for their debit and, less commonly, credit cards. In addition, entrepreneurs who have .

Initially, overdraft was intended specifically for those running their own business. In entrepreneurship, situations are not uncommon when you need to spend money beyond what you currently have. Later this service became available to individuals.

Based on the principle of operation, an overdraft can be compared to a consumer loan or loan. It also has a certain amount, or limit, the period for which it is valid, and the interest rate. Within the limit, you can make any expenses if there is not enough money in your main account. The spent part must then be returned at the end of the term along with interest.

How is an overdraft different from a loan?

First of all, an overdraft differs in the size of the amount, term and interest rate. The overdraft amount is usually less than that - most often, it is several tens of thousands of rubles. The period is shorter, a few weeks or months. And the interest rate is higher in most cases.

Using an overdraft in emergency situations is easier than using a loan. It is enough to arrange such a service with the bank in advance. If you need to spend money in excess of the account balance, the overdraft will turn on automatically. And to receive a loan, each time you need to enter into a new agreement and collect a package of documents.

Also, unlike a loan, an overdraft is always non-targeted. That is, it can be spent on anything, both in cash and non-cash. This is especially important for entrepreneurs, since business loans are most often issued for a specific purpose.

In this table you will find out under what conditions you can apply for an overdraft with different banks:

Bank	Overdraft amount	Overdraft period	Interest rate	For whom is it valid?
	Up to 500,000 rubles	Up to 30 days	Up to 24% per annum	For payroll clients
Alfa Bank	Up to 200,000 rubles	Up to 180 days	From 16.9% per annum	For payroll clients
Tinkoff	Up to 300,000 rubles	Up to 25 days	Up to 23% per annum	For all clients
	Up to 600,000 rubles	Up to 30 days	From 23% per annum	For payroll clients
	Up to 300,000 rubles	Up to 30 days	From 22.9% per annum	For bank depositors

Of all the banks presented, they only offer overdraft for any clients. In addition, for debt amounts up to 3,000 rubles, he does not charge interest.

To connect an overdraft to your debit card, contact your nearest bank branch. Please check with specialists in advance whether such a service is available for your card. Then write an application and attach the necessary documents to it. Most often, you will need a passport and income certificate.

The bank will consider your application for an overdraft for several days. After this, you will be informed about the results and, if they are positive, you will be offered to sign an agreement at the bank. A few more days after signing, the overdraft will take effect and you will be able to use it.

How to apply for an overdraft for business

According to the principle of operation, such a service does not differ from that offered to individuals. The differences are only in larger amounts and longer periods. You can most often apply for an overdraft at the bank where the entrepreneur already has a current account.

Let's consider overdraft offers for corporate clients from large banks:

To apply for an overdraft, an individual entrepreneur or LLC founder needs to contact the bank and write an application in the prescribed form. Attach to the application the OGRN or OGRNIP, TIN, charter (in the case of an LLC), a copy of the passport of the owner of the individual entrepreneur or the head of the company, and information about available loans. The overdraft application will be reviewed within a few days, after which you will be asked to sign an agreement. Now you can use this service.

Overdraft starts automatically when you try to pay for a purchase and there is not enough money on your account or card. In this case, you will pay the remaining portion of the purchase amount against the established limit. You can spend this limit one or more times. You can also withdraw or transfer part of this money.

Once you spend part of your overdraft limit, your overdraft will begin to expire. During this time, you must pay off your debt in full. If you receive your salary on a card, then this will be easy - the money will be debited from your account. Don't forget about interest - they should also be paid back. the same as for a regular loan or loan.

Example:

Petr Petrov has a debit card with an overdraft, the limit of which is 30,000 rubles, the period is 30 days, and the interest rate is 25% per annum. Every 25th day of the month he receives a salary on his card in the amount of 50,000 rubles. On the 10th, he spent 7,500 rubles using an overdraft. Let's calculate the amount that Peter will need to return, taking into account all overpayments.

First, let's calculate the overpayment for one day:

7,500 × 25% = 1825 - the amount of interest for 365 days

1825/365 = 5 - interest rate for one day

Now let’s calculate the entire amount of overpayment for 15 days from the overdraft period:

5 × 15 = 75 - the amount of interest for the entire overdraft period

7,500 + 75 = 7,575 - full amount to be refunded

Thus, after crediting his salary, he will have 42,425 rubles left.

You can monitor the amount of overdraft debts, as well as the payment deadline, in Internet banking. You can also go to the nearest branch and ask for an account statement. All amounts, terms and interest will be detailed there.

What to remember when using overdraft

First of all, keep in mind that this method of borrowing money requires more attention than or. The fact is that in any case, the entire amount of money used must be returned in full at the end of the term, regardless of how much you spent. Therefore, you should plan your overdraft costs carefully and avoid overspending. It is advisable to use the limit so that after its repayment there is enough money left in the account.

When your income is unstable or not very high, be extra careful when using an overdraft. Try to set aside some money separately in reserve in case of salary delays. In an emergency, you can pay off your overdraft debt with a microloan, but this is not always convenient due to even higher interest rates.

If you spend money over your account balance too often, you'll be better off. It is more convenient to use than a debit with an overdraft due to the interest-free grace period and the ability to pay off the debt in minimal payments with interest. In addition, many banks offer their regular customers credit cards with more favorable conditions.

In a situation where for some reason you do not repay the entire overdraft debt on time, the bank will be forced to take action. Most often, additional increased interest is charged for late payment. If such a debt is not paid for a long time, the bank takes the borrower to court. Then you will have to repay the entire amount of the debt from your property.

Infographics

Video

The “Laws for People” project tells more about technical overdraft.

Conclusion

Overdraft is, first of all, a last resort. Try to use it only if you need money for important urgent expenses. Overdraft requires more careful budgeting and a responsible approach to money. This applies to both individuals and entrepreneurs.

But it is precisely as an emergency measure that an overdraft becomes much more convenient than other types of credit or loans. You just need to learn how to use this tool. With the right approach, overdraft will not bring you any problems.

Please tell us something popular about overdraft. In my opinion, this is a cool thing that, unlike a credit card, disciplines and teaches you how to calculate your spending.

With a credit card, you spend and can’t stop, and when it’s time to pay, you pay the minimum wage. As a result, you go without money, pay high interest and feel like you are in a bottomless pit of debt. And with an allowed overdraft, you know that you can spend at least 70,000 RUR, but in a month you will have to pay it back. Entirely. Also pay a commission. As a result, you don’t mindlessly spend money on everything.

To understand how it works, I had to torment an employee in chat for 20 minutes. It would be great if there was an article that explains this.

A connected or permitted overdraft is a short-term revolving loan on a debit card. You can spend more than you have and go into negative territory due to borrowed funds from the bank. You can borrow money as many times as you like, as long as you do not exceed the overdraft limit or spend money from the limit several times a day and return it immediately. In this article we will tell you what an overdraft is for individuals - do not confuse it with the same service for businesses.

Michelle Korzhova

financial consultant at Tinkoff Bank

An overdraft can be useful when you urgently need money, but you don’t want to borrow, or you don’t have anyone or don’t have time to open a credit card. But you need to know how to use it. I'll tell you in order.

Kinds

Technical overdraft happens when you This happens if payment processing is delayed or if, with a zero balance, the bank has written off money from you for card servicing. When you go into the red, any money coming into the account goes towards paying off the debt.

Permitted overdraft you connect yourself by agreeing to the bank’s terms, including possible fines and consequences for violating these terms. You can order a debit card with an overdraft option yourself, or your bank can offer this service.

With Tinkoff Bank debit cards, you won’t go into the red if it’s time to pay a fee for transaction alerts or monthly maintenance. We write off money for services only if the balance is positive.

What are the advantages of overdraft

The main advantage is insurance in case there is not enough money on the card. This can help when traveling abroad or if your employer is late on your salary for a couple of days. Moreover, if there are enough personal funds, the limit is not spent and no fee is charged. Moreover, since an authorized overdraft is a loan, information about it is transmitted. If you pay on time, you can

How is it different from a credit card?

A credit card and an authorized overdraft solve different problems.

A credit card is a financial instrument with which you can spend the bank’s money, and sometimes even earn money from it. With the help of bonus programs and loyalty systems, you can repay the annual service fee and improve your credit history through timely payments. At the same time, if you miss a payment on a credit card, a fine will be charged and penalties will begin to apply - in this case, all the benefits from the credit card are lost, because it is the most expensive credit product.

The fee for using an authorized overdraft is written off only if there is no personal money left on the card and you spend money from the approved limit. If you always have your own money on the card, the fee will not be debited. Some call an authorized overdraft an alternative to a payday loan: instead of going somewhere to get a loan and paying huge interest for use, you can simply connect an overdraft. With Tinkoff Bank cards there are no fees at all for using up to 3,000 rubles.

How much can you get?

Since an overdraft is a short-term loan, banks usually provide a limit of up to 100,000 rubles. The service is often activated on salary cards: the bank sees the amount of income and knows when the client will receive a salary, so it provides a small loan.

At Tinkoff Bank, according to the tariff, the maximum limit of the allowed overdraft is 75,000 rubles, and in private transactions - up to 90,000 rubles. If you are a new bank client and immediately want to activate the service, the bank may ask for documents confirming the amount of income, or offer you to use the card for a couple of months, after which it will decide what amount can be approved for you, taking into account your average monthly expenses.

How to connect

On Tinkoff Black debit cards, you can activate an overdraft in your personal account or through the application. A decision on an application is usually made quickly, within a few minutes. The overdraft limit is determined individually for each client.

How to use overdraft

If the service is activated, the account balance will change: the overdraft amount will be added to it. You can use the bank's money immediately after your own runs out. You can withdraw them from an ATM or pay for purchases with a card.

There is no need to pay for using money if you have spent up to 3,000 rubles. If you spend more, the bank will charge a commission, the amount of which depends on the amount of debt. The amount of the fee is specified in the individual conditions, which can be found under the “submit application” button. For example, if the overdraft limit is 30,000 rubles, and you spent 25,000 rubles, the commission for each day of use will be 39 rubles.

The debt must be repaid in full within 25 days after the end of the billing period in which the borrowed money was used. The exact payment amount will be on your statement.

If you are unable to return the money within these 25 days after the billing period, the bank will charge a fine of 990 rubles. And this will continue in the next billing period, if you again do not have money to replenish the overdraft limit. A commission of 19 to 59 rubles per day and a monthly fine for late payment really discipline.

Typical mistakes when using overdraft

The main and most common mistake is to perceive an overdraft as your money and try to solve financial problems with its help. Remember that this is actually a regular loan that must be repaid, often with interest. I do not recommend connecting the service if you are not sure that you will be able to return the money on time.