Overdraft

Overdraft facility gives right to use amounts exceeding the balance in your company's current account up to the agreed overdraft limit.

Overdraft facility is an efficient way of short term financing. This facility helps you to balance money flows and to satisfy your liquidity needs. Overdraft facility is cost efficient — interest is paid on everyday debit balance of the account. You can use it in accordance with agreement during the whole overdraft period without any additional formalities.

Period and repayment

Overdraft may be assigned for a period of up to one year. You only have to repay the outstanding sum of overdraft until the end of the overdraft period – you can have debit balance on your current account during the whole overdraft period. The facility may be prolonged for further periods according to mutual agreement.

Currencies

Nordea Bank Lithuania offers a wide range of currencies in which overdraft can be assigned:

• LTL
• USD
• EUR
• Other European currencies

Interest

The total interest for overdraft consists of a reference rate and a margin percentage. The reference rates of the overdraft interest are well-known international reference rates: VILIBOR for LTL, EURIBOR for EUR and Euro area currencies, LIBOR for USD, etc.

Interest is calculated on daily outstanding amount and is debited automatically on last day of every calendar month. The company pays limit fee for using overdraft facility. Limit fee - an annual fee charged on the overdraft amount and payable in advance

Overdraft is an attractive way of short term financing:

• possibility to balance your money flows.you are not limited by a schedule of repayments and money withdrawals
• interest is paid on daily balance
• wide range of currencies
• interest bases are well known