Business Overdraft (OD) can be used to finance working capital for your business operations.
- A type of loan granted by the bank in which the Account Holder can draw more than the credit balance in the current account, up to the maximum Credit Facility Limit granted.
- Interest is charged only on the overdraft amount that you utilize
- Immediate access to the fund for short term needs up to 1 year
Interest rate – 9% p.a.
Service charge – 1% p.a.
Current account is required to apply for overdraft service.
Mostly, CB Bank would grant an overdraft facility on a fully secured basis using your immovable properties like land and buildings as collateral.
The maximum amount will be 50% of the forced sale value (FSV) of your property as assessed by the appointed property valuer.
You can repay total OD outstanding at any time during the term of the Credit Facility granted and pay up the accrued interest on the OD every quarter, and subject to the directives of the Central Bank of Myanmar (CBM). CBM would require you to repay the OD outstanding to a zero balance for a consecutive 2 weeks period during the term of the Facility.
Interest is calculated on the daily OD balance used and payable quarterly.