Smart Credit Gold Overdraft from StanChart

Jul 23, 2008 Personal Finance

Happened to read about StanChart launching an overdraft product, called ’Smart Credit Gold Overdraft’, a facility that allows customers to ‘overdraw’, using a cheque book and debit card. The bank will initially roll out this product in Delhi, Mumbai, Kolkata, Chennai, Banglore and Ahmedabad. There will be an annual fee of Rs.1,499.

This product will be useful for those who often need to make payments by cheque but do not wish to draw from their savings account, or withdraw cash on their credit card. The rate of interest is also much lower than that on a credit card, and you pay only when you overdraw.

I had found this an interesting concept and till a year ago, I had a similar facility from Stanchart called just ‘Smart Credit’ and another from ABN Amro Bank, called ‘CreditLine’.

As far as Stanchart was concerned, a combination of bad service and diminishing need for this facility made me terminate the account, and in case of ABN Amro, the lousy customer service was the main reason for giving it up. Of course, it was a matter of coincidence that the bank discontinued this facility itself for all customers a month later.