Credit practice is as old as humanity itself. Though they seem to evolve as time goes by, they still fulfil the same purpose of alleviating financial emergencies. An Overdraft is just another interesting form of credit, and through the course of this article, we will take a thorough analysis into what it entails.
What is an Overdraft?
An overdraft is an extension of credit from a financial institution that is granted to a customer when his/her account reaches zero. An overdraft occurs when there are no more funds in the account in question, but an outstanding transaction is processed through the account. This transaction leads the account holder incurring a debt.
How does FNB overdraft work?
FNB as a financial institution provides the FNB personal loans and other forms of financial services. The FNB overdraft is just another form of credit product they offer to their customers to serve them better.
It is a loan because, with an overdraft, the financial institution automatically lends the amount necessary to process the transaction to the account holder. This overdraft amount needs to be returned, along with interest and other fees. Though they might seem helpful, a lot of thought should be given to applying for one.
Qualifying Criterias for an FNB Overdraft
Not just anyone is qualified for an FNB overdraft. In order for prospective individuals to benefit from this service, they must;
- Be an FNB customer with an active FNB Cheque Account.
- Applicants must be 18 years or older
- Be a South African citizen
- Must pass affordability and credit scoring assessment
Necessary document required for an FNB overdraft
All applicants need to provide the following documents to qualify for an FNB overdraft;
- FNB customer with an active FNB Cheque Account
- Be 18 years or older
- Be a South African citizen
- Pass affordability and credit scoring assessment
How to get an FNB overdraft
Obtaining an FNB loan is as simple as visiting the platforms official platform and following these steps;
STEP 1:
Login to Online Banking using your username and password.
STEP 2:
Select My Bank Accounts tab.
STEP 3:
Select the relevant cheque account.
STEP 4:
Click on the Apply for an Overdraft button.
STEP 5:
Click on the Yes button to continue.
STEP 6:
Check the applicable boxes and select the Start Application button to proceed.
STEP 7:
Complete the form with your details and select the Continue button.
STEP 8:
Check that your details are correct and select the Apply button.
STEP 9:
A results screen will display the result of your application. Select the Finish button to complete the process.
Other ways to apply also involve;
- The FNB app method
- The ATM method
Conclusion
Getting an overdraft can go a long way in mitigating personal financial emergencies. Be it for health, home or maintenance, technology has eased literally every process for our convenience. The only distinction between an overdraft and personal loan is the fact that an overdraft drawer has to own an account with the financial institution to qualify.