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Overdraft

An overdraft is a situation where the bank account does not have enough funds to complete a transaction or withdrawal, but the bank allows the completion of the order anyway. Basically, an overdraft is a type of short-term loan to cover any emergency.

An overdraft agreement needs to be made between the account provider and the account holder with consensus of both parties on the limit and interest rate.

2020 Copyright © European Merchant Bank UAB. All rights reserved.
European Merchant Bank UAB is licensed by European Central Bank (License No. 3)
Swift BIC: EUEBLT22
Bloomberg Dealing Code: EUEB
2020 Copyright © European Merchant Bank UAB. All rights reserved.
European Merchant Bank UAB is licensed by European Central Bank (License No. 3)
Swift BIC: EUEBLT22
Bloomberg Dealing Code: EUEB