Personal Loans

Revolving Overdraft/ Advance

Product Definition:

Revolving Overdraft/ Advance is a facility of a continuing nature and any repaid amount becomes available for future use within the set up limit. This facility differs from any other facilities in contents and objectives as it grants limit without collateral and shall not be repaid by installments, however, it shall be repaid by salary transfer. Customer Service shall communicate with customers either those who are dealing with the branch or being targeted for marketing this product.

Target Segments:

Current and prospective customers working in the following companies and their salary transferred to BA:

v    Government authorities and entities

v    Multinational companies

v    Well known and reputable companies

Eligibility:

v    Customer salary transfer with BA prior to granting the facility

v    Minimum net salary limit is EGP800

v    Age: Not less than 21 years up to 65 years old

v    Nationality: Egyptian or expatriate

v    Total Debit Service Ratio should not exceed 40% of the customer's salary including personal loan, car loan, credit card … etc. 

Parameters:

* Net monthly salary is the value of salary after legal deductions and installments owed by the customer.

Taking the following into consideration:

§        Minimum limit is EGP800

§        Branch Retail Credit Committee is the granting authority.

Facility Term & Pricing:

The facility is valid for one year and to be renewed automatically according to the following conditions:

A-               Regular salary receipt in the customer's BA account.

B-               No limit excess

C-               No delinquent in any other facilities

-   Interest rate is 16% on numerical basis in addition to 2% administrative fees of the limit (minimum EGP60) and to be charged annually on issuing or renewal.

-   Penalty fees is EGP20 will be charged in case of any excess over limit.

Documentation:

v    A salary transfer letter from the customer's employer (as per BA format) that shall be irrevocable only by the Bank's written consent. The letter includes the employer's undertaking that he/she would repay the debt out of the customer's entitlements in case of death, resignation, early retirement…etc.

v    A promissory note signed by the customer covering the total credit limit and the annual interests.

v    A letter from the customer's employer stating the date of recruitment, job title, term of labor contract, gross salary, monthly deductions and advances obtained from any other entity.

v    An acknowledgement from the customer indicating his/her agreement on repaying the debt amount in case of death, resignation, early retirement... etc out of his/her entitlements. 

v    Determining whether the name of the customer appears on the negative list and obtaining the customer's aggregated credit report and credit information from the Egyptian Credit Bureau.

v    A copy of the customer's national ID.

v    If the customer has another existing facility, the customer should prove his/her regularity in repayment.