UBRD Offers More Overdraft Options

UrBC, Yekaterinburg, November 3, 2017. The Ural Bank for Reconstruction & Development (UBRD) introduced a number of new products for its small business customers: they can now benefit from two new overdraft options, the bank’s press service reports.

Small enterprises are getting increasingly more interested in the bank’s overdraft offers, as this is a convenient way to make up for cash shortage and pay all salaries and rent in time. The bank provided its customers with 25% more overdrafts in January-September 2017 compared with one year earlier, whereas the overall overdraft amount was 26% more than one year earlier. The share of overdraft loans to SMEs rose from 12% to 21%. The service is mostly popular with businesses in the service sector and retail and wholesale trade.

The UBRD launched two new overdraft options in October to meet its customers’ short-term loan needs.

One option is to apply for a two-year overdraft scheme, which is more suitable for entrepreneurs who intend to pay their employees’ salaries into UBRD accounts. The overdraft limit thus depends on the overall amount of pay: the more people a company employs, the greater the overdraft limit is (up to RUR 3m all in all).

Express overdraft option will suit those who need a moderate amount of money for a short time in order to pay partners and contractors. The overdraft limit depend on the net credit turnover amount (up to RUR 500,000 all in all).

Interest rates come to 12% and 24% a year, respectively.

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