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Overdraft for Individual Accounts

This Key Facts Statement provides you with indicative information about the features, interest, fees and charges of this product, but please refer to BSI Offer Letter for the final terms of your Overdraft facility.

Product Information

Product Type
  • An Overdraft facility is a credit agreement made with the Bank that allows an account holder to withdraw amount up to approved overdraft limit as decided by the Bank, even if there is no credit balance in the said account.
  • The Overdraft facility can only be offered to customers having valid residence visa against Fixed Deposit Under-lien.
  • The customers must be having a satisfactory AECB report to avail the facility.
Overdraft Period
  • Offered for maximum 12 months and may be renewed at the Bank’s discretion
  • In case customer wishes to terminate the facility, customer has to settle the outstanding overdraft amount plus accrued interest (if any) at any point in time.
Collateral
  • Fixed Deposit Under-lien
Overdraft Currency
  • AED (Arab Emirates Dirham)
Interest Rate / Interest Pay time
  • For Overdraft linked against Fixed Deposit under-lien, interest rate is maximum 3% above Fixed Deposit rate.
  • (Interest Rate is fixed throughout the Overdraft validity period)
  • Overdraft interest to be charged for utilized balances.
  • Excess over limit – Higher interest rate to be charged on the amount exceeding the approved limit as per prevailing interest rate tariff sheet.
  • Excess over limit amounts must be settled by the customer at the end of each month.
Fees & Charges
Commission / Processing Fees
  • For Overdraft facility against Fixed Deposit under-lien: 0.1% (Min. AED 200.00, Max. AED 1,000.00)

  • All charges, commissions and fees mentioned are exclusive of 5% Value Added Tax (VAT). To review the latest Schedule of Charges please visit our website:

    http://www.banksaderat.ae/

  • If you have any queries, you are unsatisfied with our services or to report fraud / complaint / dispute, please contact our Customer Service on +971 4 6035267 or businesscare@bsi.co.ae

Sample Illustration (for reference purpose only)

  • Fix Deposit Rate 3.25%
  • Overdraft Interest Rate 6.25% (3% above Fixed Deposit rate)
  • Overdraft Facility AED 20,000.00
  • Amount Utilized AED 10,000.00
  • Interest Rate per annum (Fixed) 6.25%
  • Computation on Interest Rate Daily basis over the amount overdrawn
  • Utilized Period in Days 15 (number of calendar days the account has been overdrawn)
  • Total Interest Amount AED 26.04 (Calculated based on number of days utilized)

Interest is calculated daily and charged monthly using the formula: Overdraft daily Balance * Interest Rate * (1/360) for one day (as we follow 30/360 basis)

Additional Information

  • The Overdraft amount you are eligible for and the interest rate offered may differ from the representative example as shown above. This will depend on your credit profile and affordability assessment done by the Bank.
  • The processing of your application leading to the Overdraft limit setup into your account may take up to 10 business days from the time Bank receives complete documentation.
  • The Bank reserves the right to make permissible changes to the Terms and Conditions, including the applicable interest rate. You will be given 60 calendar days’ notice before such changes are implemented.
  • If Fixed Deposit interest rate changed during the Overdraft contract period, Bank reserves the right to revise the Overdraft Interest rate (not exceeding 3% over the Fixed Deposit rate).
  • In case you fail to fulfill your obligations as per the Terms and Conditions, before and during your relationship with us, there will be consequences including, but not limited to larger compounding interest payments, repayment on demand, blockage or cessation of this product / service, and / or penalties.
  • You will have 5 working days after acceptance of any offer to change your mind unless you have waived this right. If you waive the right to the Cooling Off, you will be bound by the conditions of the product immediately.

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