When starting a transaction with a bank, opening a payment account is the minimum for a business. Around this payment account, businesses are provided with many related services such as: Deposit contracts, loans, guarantees, credit cards, payroll payments... However, to solve urgent financial problems, to cope with sudden expenses, it is impossible not to mention overdraft loans. So what are the characteristics of this form of loan, what are the advantages and disadvantages and what is the overdraft limit lending process at SeABank? This will be analyzed specifically in the article below.
Learn about business overdraft loans
Overdraft loan on the payment account according to Clause 6, Article 27 of Circular 39/2016/TT-NHNN is regulated as follows: Credit institutions approve customers to spend more than the amount available in the customer's payment account by a maximum overdraft level to perform payment services on the payment account. The maximum overdraft limit is 01 (one) year.
Customers can spend more than the amount on the payment account.
What are the characteristics of overdraft loans?
Some characteristics of business overdraft loans include:
- Overdraft through the Enterprise account, the enterprise can spend more than the actual amount in the payment account, even when the account has no balance.
- Overdraft limit: Based on the financial situation, reputation and credit history of the business.
- Loan interest rate: Usually higher than normal loan interest rate
- Loan term: Maximum 12 months
- Needs: Suitable for businesses with urgent, quick spending needs without having to go through complicated loan procedures like other forms of loans.
Advantages and disadvantages of business overdraft loan
Advantages of borrowing a business overdraft limit
- Loan procedures are not complicated, convenient, fast, quickly resolve urgent problems or arising expenses
- Automatic principal payment: Businesses will be paid the principal automatically as soon as money is deposited into the account, minimizing the interest payable to the bank.
- Flexibility in using overdraft limits and proactive disbursement
Overdraft loan quickly solves arising financial needs
Disadvantages when borrowing business overdraft limit
- High interest rate: Overdraft interest rate is higher than other forms of loans. Therefore, customers need to calculate carefully before using this service as well as ensure the ability to repay on time.
- Limit is not large: For each business, the bank will have a different limit, but in general it is not large because this form of loan is only suitable for short-term, urgent capital needs for businesses.
Overdraft interest rates are higher than regular loan interest rates.
- Financial pressure: Because the maximum term of an overdraft loan contract is 12 months, businesses need to calculate and prepare for the loan maturity, avoiding cases of not paying the loan on time, leading to high interest and penalties, loss of reputation, credit history, affecting the ability to borrow capital in the future.
Conditions, procedures, and processes for borrowing overdraft limit at SeABank
Some information when borrowing overdraft limit at SeABank.
- Accept a variety of flexible collateral types, accept unsecured overdrafts, competitive loan to collateral value ratio.
- High overdraft limit, up to 50 billion VND.
- Customers are allowed to spend more than the balance in the overdraft account opened at SeAbank.
- How to use TKTC: Transfer money within and outside the SeABank system; no cash withdrawal, check payment at the counter; no card connection; no debit to pay overdraft interest and principal, interest of other loans.
- Flexible repayment method, monthly interest payment, principal payment when there is a transaction credited to the customer's payment account.
- Competitive interest rates
SeABank overdraft limit for businesses up to 50 billion
Conditions for business overdraft loan
At SeABank, to borrow overdraft limit, businesses need to meet the following conditions:
- Corporate customers are legal entities, individual customers are owners of private enterprises borrowing capital to serve the business activities of private enterprises that meet SeABank's loan conditions and the law.
- Payment account that the business opens at SeABank
- Enterprises operate in accordance with state regulations and laws.
- Guarantee of debt repayment
Documents and procedures for overdraft loan at SeABank
To apply for an overdraft loan, the following documents will be required:
- Legal documents
- Loan plan profile
- Financial Profile
- Collateral Profile
Loan process:
Step 1: Enterprises prepare documents and propose overdraft plans to SeABank.
Step 2: SeABank receives and evaluates applications, at this step will make a decision to approve or reject.
Step 3: If the application is approved, we will prepare an overdraft limit contract, a guarantee contract, sign a contract with the enterprise, and complete the procedures for receiving collateral.
Step 4: After the contract is signed, the overdraft limit account will be activated. Enterprises can use the overdraft limit by transferring money at any SeABank transaction point or through SeABank's electronic banking system.
Step 5: During the process of using the overdraft limit, SeABank will regularly check the loan purpose to ensure compliance with the terms of the contract.
Conclusion.
Choosing to borrow according to the overdraft limit not only helps customers solve urgent financial problems but also helps businesses circulate cash flow more stably and regularly. For detailed advice on this product, you can contact SeABank at the website address or Hotline number1900.599.952 (KHDN) and SeABank branches/transaction offices nationwide.
