Secured overdraft facility for individual customers

An overdraft is a facility that allows customers to spend beyond the available balance in their payment account, within the credit limit approved by VRB

Houses/land, automobiles, future residential property, or deposits/valuable papers accepted by VRB may be used as collateral

The overdraft limit is determined based on income/revenue, financing needs, and the value of the collateral, in accordance with VRB’s applicable methods and criteria

The maximum tenor is 12 months

The credit limit can be used for bank transfers, online payments, transactions at VRB counters/ATMs, or POS payments

Principal is automatically recovered when funds are credited to the account. Interest is collected monthly in accordance with applicable regulations

No. No interest is charged on amounts drawn and fully repaid on the same day, in accordance with the product terms

Yes. Customers are required to credit income/revenue to the overdraft account at the minimum level specified, except for certain cases where the facility is 100% secured by eligible deposits/valuable papers

Customers are required to provide personal identification documents, documents evidencing income/the purpose of the loan, and collateral documents, as applicable to each case

Upon expiry, the overdraft facility must be fully settled. If continued use is required and all applicable conditions are met, VRB may consider granting a new credit limit