KFS OD Against FD

Overdraft Facility against Fixed Deposit

An overdraft is a short-term borrowing facility offered on your current account that provides you with instant cash support to fulfil your temporary requirements. This is secured by a Fixed Deposit you maintain with the bank.

KFS provides you with indicative IMPORTANT information about the commercial terms applicable to Al Khaliji France S.A. Overdraft Facility including interest, fees and charges of this product.

We kindly request you to carefully read and understand the document, if you are considering applying for an Overdraft Facility against Fixed deposit from Al Khaliji S.A France.

By signing this KFS document, you consent that you have read and understood the Overdraft features and benefits, applicable fees and interest charges.

For More detailed information, please refer to the facility offer letter or visit AKF website at www.alkhaliji.ae

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Key Product Details

Product Type

Overdraft (OD) is an approved credit limit linked to current account.

Minimum Finance

Up to 90% of your Fixed Deposit with us linked to your current account.

Overdraft Period

Valid for the tenor of the Fixed Deposit.

Overdraft Currency

AED and USD (The overdraft facility will be denominated in the same currency as the Fixed Deposit).

Security / Collateral

Lien on the Fixed Deposits (held in Al Khaliji France S.A. – UAE Branches).

Interest Rate

Fixed Deposit rate + 2% onwards for amount up to AED 499,999/- and Fixed Deposit rate + 1% for amount more than AED 500,000/-.

Illustration of Interest Calculation for Overdraft**

a. Fixed Deposit Value	AED 100,000/-
b. Overdraft Amount	AED 90,000/- (Being 90% of the FD amount)
c. OD Utilized Amount	AED 50,000/-
d. Interest Rate per annum	5%*
e. Interest Rate per month	0.42%
f. Utilized Period in Days	30 (Number of days the amount has been overdrawn)
g. Total Interest Amount (c × e × f)	AED 206/-

Interest Rate Calculation:
Interest amount = OD amount (50,000) x Interest Rate (5%/365 days) x utilized period (30 days)

*If FD rate is 3% + 2% fixed margin then interest rate is 5% per annum.
**This calculation is tentative and may vary depending on the loan terms and the Bank’s policies.

Overdraft Repayment

You can repay the Overdraft facility at any time by crediting the account with the amount outstanding. No interest is charged when the Overdraft outstanding balance is NIL.

Overdraft Processing Fees / Renewal Fee

As per the Facility Offer Letter.

Important Links

For detailed and latest fees and charges and other product please visit our website www.alkhaliji.ae

Additional Information

The Overdraft amount consumers are eligible for and interest rate offered may differ from the illustrative example shown above.
Bank reserves the right to decline any customer application at its sole discretion.
The bank reserves full-unrestricted rights to modify its Terms and conditions offered and revise the rates applied on Fees and Interest Charges at any time by giving a written notice to the customers registered contact details with 60 days prior notice of effecting such charges wherever applicable
All interest charges applicable are calculated from the date of loan disbursal.
In case you fail to fulfil your obligations as per the Terms and Conditions, before and during your relationship with us, there will be consequences including but not limited to penalties.
Bank may debit the Customer’s account with any charges, expenses or commission payable against the banking services rendered in accordance with the approved and announced banking charges and commission as notified to the customer from time to time.
The Bank will hold the Fixed Deposit until the loan is repaid in full.
The Bank will not charge interest on the accrued interest.
The cooling-off period allows you to cancel the product within five (5) business days of signing the application or offer letter and the Bank will not be able to proceed until this period expires, unless you have waived this right. To cancel the application or offer during the cooling period you must provide notice to the bank.
The data privacy prescribes rules and regulations regarding the collection, handling, disclosures and use of personal data in the bank. Kindly visit www.alkhaliji.ae for the details on Privacy Policy of the Bank

Warning

If account continues to remain in overdraft status due to insufficient credits in the account you may lose your Fixed Deposit
AKF will report any default or payment delays to Al Etihad Credit Bureau (AECB), which may impact the credit history and credit score of the Customer.
The Overdraft facility may be withdrawn by the Bank at any time and you must repay the bank all outstanding on your account upon demand
Overdraft facility secured by Fixed Deposit, the bank has a right of lien and set off, so that it can use deposit to pay off any and all amounts you owe to the Bank.