An  overdraft is a credit facility loaded to your current account. This means that you have the convenience of borrowing on the same account that is used for your daily banking transactions. An Overdraft is ideal to help you manage your cash flow in months when you have high expenditure, to finance small recurring expenses as well as unforeseen expenses which you intend to pay off over a short period of time.

Features and benefits

• Funds are available immediately and you can use as much of your agreed overdraft limit as you need whenever you need it. The total limit is always available to you for use.
• You only pay interest on the portion of the overdraft you used in any given month. 
• The interest rate is linked to prime so that you receive the benefit when prime rates decrease.
• No monthly repayment is required. Only a deposit into your current account, preferably your salary.
• Once you have an overdraft, you can conveniently increase or decrease your limit via any of Stanbic Bank’s self service channels. 
• An overdraft will provide you with the comfort of knowing that you have instant access to extra cash in case of an emergency.
• You also have the option of taking out insurance on your overdraft facility.  This will give you peace of mind knowing that your loan will be settled in full in the event of disability, dreaded disease or death.
• The amount you qualify for depends on your affordability and credit risk.

Fees

• There is a once-off initiation fee charged for new overdraft facilities.
• Penalty interest of 10% will be charged on amounts in excess of the Overdraft limit
• All fees charged are regulated by the National Credit Act and will not exceed the limits determined by the act.

How to apply
To apply for a new overdraft facility, or to increase your existing limit, visit your nearest Stanbic Bank Tanzania branch.  You will need to have a valid Stanbic Bank current account in order to apply for an overdraft facility.  Alternatively, you can apply for a new current account and overdraft facility at the same.