![](https://horizonbankss.com/wp-content/uploads/2021/10/temporary-overdrafts_bg.jpg)
PRODUCT PURPOSE
This is a short term credit facilities offered to bridge cash needs when the customer expects to receive funds at a point in the immediate future.
The available options are
a) Temporary ODs
b) Approvals against uncleared funds – payment against cheques that are not yet cleared
c) Daylight overdrafts – disbursements of funds during the day prior to a planned same day receipt of available funds
d) Overnight ODs – disbursement of funds against the funds expected to be credited the next day.
TOD must be limited to a maximum of 30 days and must be approved by officers with delegated authority. The amount of overdraft plus applicable charges/costs must be fully paid up within the stipulated time period.
FEATURES AND FUNCTIONALITY
- Minimum overdraft limit of SSP 10,000 or USD equivalent.
- Maximum limit of up to SSP 100,000 or USD equivalent for an unsecured facility. There is no maximum limit on a secured facility.
- Minimum banking period for overdraft eligibility – 1 year
- The overdraft facility is available in SSP and USD.
- Interest rate – The Bank Base Rate advised from time to time plus a margin of up to 10%.
- Customer Eligibility;
• Customers with minimum net salary/income of SSP 10,000
• Customer age – maximum 60 years old, subject to retirement age
• Senior Civil Servants, senior management of private companies, Diplomats, Senior management of Embassies and NGOs that enjoy VIP status in the bank - Qualification criteria;
• Customer salary must be channelled through the bank
• If salary is not channelled through the Bank, the overdraft must be secured
BENEFITS
- The customer is only charged interest on the amount drawn/utilized
- Immediate/emergency cash requirements are easily met