Define account (overdraft) Agreement between the Bank and the client from which the customer can withdraw the money within certain limits called the overdraft limit, the client pays a Commission account overdraft to Bank the full amount (ceiling) and once a year, and pay interest on the amount withdrawn.

The importance of the account overdraft Is an overdraft facility short-term which enables the trader to benefit from periods of business activity, being able to pay for the goods the suppliers directly, and after that check business merchant deposit of income from the sale of the goods to the customers account overdraft to pay what it already and so in each session.

On the other hand is overdraft (merchant) method of borrowing inexpensive when compared with aakhri facilities, with interest calculated only on withdrawals and the balance remains overdrawn, not on the roof of the merchant.

Overdraft account opening procedure 1. overdraft facilities client requests on the form approved by the Bank and the amount requested and purpose of use and guarantees provided to the Bank. 2. the Bank is studying the request and customer approval and conditions. 3. equipped authorized overdraft facilities on contract form approved by the Bank, the contract includes the name of the borrower (and guarantor if applicable), address and Cap overdraft interest rate, Commission, and duration of overdrafts as well as other conditions that regulates the relationship between the Bank and the client.

4. the contract is signed by the borrower (and guarantor, if any), by authorized signatories on the Bank and takes into account a legal stamp on the contract. 5. the client shall sign on the signature card. 6. open the account for the client and gives a number, and the customer is granted a cheque on that account. 7. after completion of contract signatures overdraft and opening an account opens the file save copy of documents relating to the contract and copies of notifications and correspondence with the client.

Conditions for opening an account overdraft There are several conditions imposed by the Bank to open an account overdraft:- 1. reputation for client 2. the ability of client: and relies heavily on its results and robustness of its financial position and safety. 3. capital: must have sufficient capital to run the business of the customer.

Warranty/no personal guarantees and kind enough, and take copies thereof guarantees:- * Warranty: no charge deposits, for example. * Securities: any exchange for shares or bonds. * Goods: any exchange for goods, in this case banks require for storage and easy sale and disposal if needed. * Real guarantees. * Waiver of dues to the client, the client waives any rights under contracts with others, such as export credits.

Commercial paper: no return for customer bills drawn on others