In today’s guide, we will show you how Absa overdrafts works in South Africa.
We will first begin by briefly explaining to you what an overdraft is.
What Is An Overdraft
An overdraft is a revolving credit facility loaded into your account and reviewed yearly.
An overdraft can be simply described as a loan a bank provides you, which allows you to pay for bills and other expenses when your account reaches zero.
You need to make regular deposits into your account to keep the account up to date.
Requirements For An Absa Overdraft in South Africa
Below are the basic requirements to qualify for an Absa overdraft in South Africa:
- To qualify for an Absa overdraft in South Africa, you need to have a monthly income of at least R2000
- You need to have an existing Absa bank cheque account into which your monthly income is paid
- Have to be over 18 years to qualify for Absa overdraft in South Africa.
- Provide Absa bank with your proof of address, such as utility bills.
- You also have to provide your latest payslips or three months bank statements to verify your income.
What Is The Repayment Plan For Absa Overdraft In South Africa?
The repayment plan for Absa overdraft is as follows:
- A once-off initiation fee of up to R1 207.50 on a new facility
- A monthly service fee of R69.00
- A monthly interest on the portion of the overdraft limit you have used
- A personalized annual percentage interest of up to 10.5%
This is what the Absa overdraft in South Africa repayment plan looks like.
How To Apply For An Absa Overdraft In South Africa.
To apply for Absa overdraft online in South Africa, follow the basic steps below:
- To apply for Absa overdraft in South Africa, you first login into the Absa application on your device
- Next, tap on the three parallel lines at the bottom right of your screen
- Choose the Buy option
- After that, select the Overdraft option and follow the instructions provided.
You can also visit your nearest Absa bank branch to apply for an Absa overdraft.
This is how you apply for Absa overdraft works in South Africa.