MyWORLD Overdraft

Giving you access to emergency funds when you need it most. And because it is linked to your MyWORLD account, you still get access to up to 6 linked accounts – with no monthly fees at SA’s best rates.

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What is Overdraft?

An African Bank Overdraft facility is a credit facility, in the form of an agreement made with African Bank that allows a MyWORLD account holder to use or withdraw more money than what they have in their MyWORLD account, up to an approved limit. In other words, the customer’s MyWORLD account can have a debit, or a negative, balance.

How does African Bank’s Overdraft work?

Because the Overdraft is linked to your MyWORLD account, you will need to have a MyWORLD account first to start the Overdraft application process. Once approved for a certain limit, you will have access to funds when you have used up all the money in your MyWORLD bank account. You can use these funds for emergencies. You can also use these funds for making ATM cash withdrawals and for making online purchases using your MyWORLD bank account.

You have peace of mind, knowing you have access to funds in an emergency. The Overdraft can help with:

Mid-month emergency expenses.
Access to cash before pay day.
Cover for rainy days when you are running short on cash.
It helps you to manage your monthly cash flow and provides protection from unpaid debit orders when your salary gets used up.

How much does it cost to have an Overdraft facility at African Bank?

The great news is that there are no initiation fees.
Customers will be charged a monthly fee of R69 which includes VAT.
The transaction fees are linked to the MyWORLD transaction fees. Please refer to our pricing guide here.

What is required to apply for the Overdraft?

Customers must have an active MyWORLD bank account.
Customers must be between the age of 18 and 60.
Customers must earn more than R3 500 a month.
Customers must be a monthly salary or wage earner for a minimum of ONE month with the same employer.
To activate the Overdraft, customers must switch their monthly salary to African Bank.

How do I apply for an Overdraft?

There are several ways to apply for African Bank’s Overdraft facility. You can:

Apply online 24/7 using our African Bank App or by registering for Online Banking on our website. You will not be charged any data when using our digital banking platforms.
You are welcome to visit any African Bank branch and apply in our branch.
You can contact our Call Centre on 0860 333 004

Is the Overdraft facility a Loan?

No. The Overdraft is a facility offered to the customer, providing access to additional funds up to an approved specified amount. This Overdraft will be available for use on the customer’s MyWORLD account. There is no disbursement of funds into the MyWORLD bank account, instead a facility limit is loaded thereby increasing the customer’s available funds. Customers will be able to see their current and available balances, as well as limits, on their Online Banking or Banking App profile and on their bank statements.

What happens if I exceed my Overdraft facility limit?

In exceptional cases, a customer may exceed their Overdraft limit due to fees processed to their account. A customer will always remain responsible for the re-payment of the full balance.

What is the maximum and minimum amounts on African Bank’s Overdraft facility?

Depending on the customer’s affordability, the maximum facility offered is R100 000 and the minimum facility offered is R3 500.

What happens if I successfully apply for an Overdraft but do not use it?

The Overdraft will remain available to you, our valued customer, and you will be charged the monthly Overdraft fee of R60 plus VAT. However, if it remains un-utilised for a period of time, African Bank may decide to cancel the Overdraft. Affected customers will be notified in advance if this happens.

Which documents are required to apply for an Overdraft facility?

One bank statement and 3 payslips are required or one bank statement showing 3 salary deposits and one payslip. All latest documents are required as per African Bank’s Credit Policy.

What will happen if the customer does not qualify for the Overdraft facility?

The customer will unfortunately be presented with a message that the customer did not qualify for the Overdraft facility. Customers are reminded to regularly check the status of their credit report as this affects their ability to apply for credit in the form of a loan or overdraft. African Bank offers all South Africans a free credit report every month. Simply register for Online Banking on our website or download the African Bank App to get your free credit report today. You do not need to be a customer of African Bank to get your free credit report.

What is the interest rate charged on the Overdraft?

An interest rate of 18% is charged on the Overdraft amount used.

Will a customer be able to add an Overdraft facility on a Pocket account?

No. The Overdraft facility is only available on the MYWORLD bank account.

Can a customer to reduce their Overdraft facility limit?

Yes, the facility can be adjusted. You can do this using Online Banking or the African Bank App or speak to one of our helpful agents in Branch or at our Call Centre.

Can a customer close the Overdraft facility/MyWORLD account?

A customer can close their Overdraft facility if the amount owed to African Bank is zero. You can do this using Online Banking or the African Bank App or speak to one of our helpful agents in Branch or at our Call Centre. You are recommended to first request a Settlement Letter. This will show you how much needs to be paid to close the Overdraft facility. You can request a Settlement Letter for free using Online Banking or the African Bank App.

How does the customer transfer their salary to their MyWORLD account?

You can request for a MyWORLD Account Confirmation letter to be emailed to you. This can be done for free using Online Banking or the African Bank App. You can then email the MyWORLD Account Confirmation letter to your employer to switch your salary before your next pay day.

Are there monthly fees?

There is a monthly fee of R60 plus VAT which is charged to your account once the Overdraft facility is activated.

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