Overdraft Line of Credit
Slavie Federal Savings Bank offers an Overdraft Line of Credit product which is a pre-approved, unsecured loan designed to protect our checking account customers from the embarrassment of accidentally overdrawing their account.
Overdraft lines of credit are only available to natural persons who have an existing checking account with Slavie: this includes our Checking, Free Checking, NOW, Super Fifty, or Super NOW Account programs. Commercial accounts, non-profit organizations and others are not eligible for overdraft protection.
The customers must complete an application and be approved. Approval is not automatic for existing customers. The terms of the loan are:
- Term: Revolving (no maturity date)
- Interest Rate: 15.00%
- Minimum Loan Amount: $50
- Maximum Loan Amount: $5,000
- Payments: $25.00 minimum. The monthly payment can be automatically debited from a Slavie account.
Advances: $50 minimum. Increments of $50.00 up to maximum line. Funds are automatically advanced whenever the balance in the checking account is insufficient to cover ATM/POS transactions or checks presented for payment.
Fees: None except finance charges and late charges.
Loans will be underwritten and approved by Branch Managers and Assistant Branch Mangers. Persons must have been a Slavie customer for at least three months and may not have had any returned checks within the last six months. Slavie will not require security other than the right of offset against balances on deposit with Slavie.
The payment due date is the 15th of each month even if this day falls on a weekend or holiday. The payment is considered late after the 30th, at which time a late charge of $5.00 will accrue. There is no grace period. A convenient, easy to follow bill will be sent to you each month until the balance is paid in full.
If you chose to close your checking account with Slavie Federal Savings Bank, the Overdraft Line of Credit balance must be paid in full prior to doing so. In the event the payments fall behind, any payment received will first go toward late charges, then accrued interest, and then to the balance of the loan.
If you are interested in applying for the Overdraft Line of Credit, simply complete the short application provided by our staff and return it to any of our two locations. We will respond to you within three business days.