Basic Current Account Overdrafts

The right to an overdraft is given to current account holders who derive regular income as a salary, pension or from a Produce Purchase Agreement.

After the first salary or pension has been paid into account, the client may submit a request for overdraft. The Bank does not charge a fee for overdraft approval. Overdraft is approved to a period of 12 months in the maximum amount of average monthly income from salary/pension plus 50% of this amount, after the Bank has checked Client’s credit ability,  that the current account and internal rating is in order and after a report from the Credit Bureau has been obtained.

The Bank charges annual interest rate of 31,75% of the amount of used overdraft. Nominal interest rate on authorised overdraft is fixed and is calculated using a compound method. 

Apart from nominal interest rate, included in the effective interest rate are the fixed expenses incurred by the client at the moment of submitting a request. These are:

  • 246 RSD to obtain a report from the Credit Bureau, according to the tariff of the Association of Serbian Banks
  • 50 RSD for the promissory note form, according to the tariff of the National Bank of Serbia.

Calculation of effective interest rate as at 01.08.2018. is explained in the representative example. 

If the client exceeds the authorised overdraft or does not clear the negative balance before the overdraft expiration date, the Bank will charge the agreed interest rate that applies on unauthorised overdraft. 

Interest rate on unauthorised overdraft is variable and amounts to 40 p.p. per annum, increased for the annual growth rate of consumer prices. Interest rate is adjusted for the growth rate of consumer prices twice a year, on every March 1st, against the growth rate of consumer prices in the previous calendar year and on September 1st, against the growth rate of consumer prices in the period from June 30th of the previous year and June 30th of the current year (interest rate on unauthorised overdraft at 01.09.2018. is 42,30% and in effect until 01.03.2019.). Interest rate on unauthorised overdraf at 01.03.2019 is 42,00% and in effect until 01.09.2019.

 

Overdraft

OVERDRAFT

CONDITIONS

Regular income from salary/pension

REQUIRED DOCUMENTS

Overdraft application form

AMOUNT OF OVERDRAFT

up to the amount of regular monthly income increased by 50%

REPAYMENT PERIOD

Up to 12 months

OVERDRAFT CLEAN-UP

On expiration date

INTEREST RATE

31,75% annually, fixed

COLLATERALS

Promissory note/Letter of authorisation

RSD 50.00

COST OF OBTAINING REPORT FROM THE CREDIT BUREAU

RSD 246.00

EFFECTIVE INTEREST RATE (ANNUALLY)

32,64% annually,

REPRESENTATIVE EXAMPLE:

AMOUNT: 50,000.00RSD

REPAYMENT PERIOD: 12 MONTHS

TOTAL INTEREST: 13.946,55 RSD

TOTAL AMOUNT: 63.946,55 RSD

EKS OBRAČUNAT NA DAN 01.08.2018. GODINE