An Overdraft Account means an overdraft balance defined in the current accounts of the bank’s customers. That is, a credit defined within certain limits on your demand account. KMH defines your negative balance which you can use if you run out of cash in your demand account. Your money is defined as cash minus the money you would use KMH when finished, is meant to cash. This money can be used for all your transactions (with some exceptions ). EFT, money transfer and payment transactions can be done with your KMH account. What is KMH?
Same as a normal credit system
All the features of your KMH account may appear to be on average the same as a normal credit system. As with loans, certain interest rates are determined based on the amount you use in your PFM account, and your repayments are calculated with this interest added. However, KMH usage conditions in some banks may vary. File costs and interest rates to learn from your bank is useful.
Approved at high limits
In banks where you receive a salary, your demand account is usually defined as KMH. Even if you do not have KMH in your salary account, your KMH account can be approved at high limits because you regularly receive a salary from that bank, and you can withdraw negative amounts along with your salary. Since your salary is paid to your salary each month, your bank automatically counts the negative balance from you and this becomes a cycle. For example, if your monthly salary is defined as KMH , your salary automatically pays. When you withdraw your salary again, that balance is still negative. You pay interest again for that month. You can get a month-to-month salary to cover this debt.
However, as we have just mentioned, the conditions of all banks are independent of each other . If you are applying for a physical application before or during the opening of a KMH account, read the terms of your KMH account in the contract until the end of the contract and learn the interest rates clearly.