¿How can this credit line be used?
- For purchasing goods and services at establishments affiliated to the Clave System.
- For purchases, payments and transfers transacted online
- For payments in the form of checks (Preferential and Plus segments).
- ATM cash withdrawals (through the Clave network at home or the Plus network abroad).
¿What is the Flexible Credit Line?
Our Flexible Credit Line consists of an additional amount of credit that is deposited in the client´s checking account for the purpose of addressing any urgent need or unforeseen circumstance.
¿How does the Flexible Credit Line work?
Since our Flexible Credit Line is a product that provides additional cash in your checking account, you can begin to use it as your account funds wind down to zero.
The following is an example of how this credit line works:
You have a flexible credit line of $100.00 and the balance of your account is as follows:
Current balance held in client´s account: $50.00
Balance available: $150.00
If you need to spend $80.00 in cash, upon withdrawing this amount from a Banistmo ATM, your account shall show the following balance:
Current balance held in client´s account: - $30.00
Balance available: $70.00
As a result of this transaction, you used the $50.00 corresponding to the balance of your account, plus $30.00 from your Flexible Credit Line, so you now have $70.00 as back-up for any other emergency or urgent need.
When depositing money in your checking account, whether this is a direct payroll deposit or a transfer of funds performed either on-lineor at any branch office, in the amount of say $200.00, you would obtain the following balance:
Current balance held in client´s account: $170.00
SBalance available: $270.00
This means that, with this deposit, you have effectively paid back the balance of $30.00 from your Flexible Credit Line and you now have 100% of the balance available for this same line as a back-up to cover any emergency or urgent need.
¿When to I have to pay the balance owing on my Flexible Credit Line?
The amount provided by your Flexible Credit Line must be paid back within 30 days of having used this facility.
Amounts borrowed from our Flexible Credit Line can be repaid either by a cash deposit in your checking account or by transferring funds on-line from any other account.
Upon paying your Flexible Credit Line you must ensure that your checking account is not overdrawn during the 24-hour period prior to the date on which payments are made. Once this 24-hour period has passed, you shall be able to continue using your Flexible Credit Line.
¿If I don't use my Flexible Credit Line do I still have to pay interest and insurance expense?
If you not use your Flexible Credit Line, you shall not be charged any interest or life insurance expense.
Interest shall accrue on a daily basis on the balance or amounts used from our Flexible Credit Line, and shown on the client´s statement at the end of each month.
Life insurance expense is charged on a monthly basis providing the Flexible Credit Line is being used, thus covering the amounts owing in the event of the client´s death.
¿Can my Flexible Credit Line be extended to all those persons appearing on my account?
Yes, this is made available to all those signatories of jointly-held accounts, however the person responsible and the beneficiary of the life insurance shall be the principal account holder.
¿Is there any penalty charged if I cancel my Flexible Credit Line before it expires?
There is no penalty whatsoever for canceling your Flexible Credit Line at any time. However you must repay the balance or amounts used, if applicable, before proceeding to cancel the product.
¿Can I use my Flexible Credit Line abroad?
Yes, our Flexible Credit Line can be used abroad at ATMs belonging to the Plus Network.
¿Do I have to pay 7% Goods and Services Transfer Tax (ITBMS) on top of the interest charged on the amount of credit used?
No Banking commission is charged for using our Flexible Credit Line and hence there is no 7% Goods and Services Transfer Tax (ITBMS) to be paid. The only charges are interest accruing on the amounts used from the Flexible Credit Line as well as life insurance expense, which already includes the tax stipulated in Law 49 passed September 17, 2009, which reformed the Panamanian Tax Code.
¿Can I exceed the authorized limit on my Flexible Credit Line?
This may not exceed the amount of credit approved; however should this entire amount be used, you must remember that accrued interest and life insurance expense must be paid at the end of the month and this could well surpass the approved limit. In this case, we recommend that you pay the amount used plus these charges within a period of 15 days subsequent to the end of the month so that you remain within your approved limit.
¿In order to renew my Flexible Credit Line must I repeat all the paperwork that was initially required?
No other paperwork is required since this is an internal process which is performed automatically. Our Flexible Credit Line carries a term of 12 months, which can be renewed, subject to how the client manages his or her account this based on internal credit references from Banistmo and as well as outside credit references issued by the APC credit bureau.
¿On what do you base your decision to extend the term of my Flexible Credit Line?
- Maintaining a good credit history, that is to say good internal references from Banistmo as well as outside references from the APC credit bureau.
- Periodically repaying the balance owing on your Flexible Credit Line.
- For all those clients with payroll credit facilities, avoid exceeding your authorized limit for more than 45 consecutive days after the final day of the month.
- For all those clients belonging to our Preferential and Plus segments who do not have payroll credit facilities, avoid exceeding your authorized limit for more than 15 consecutive days after the final day of the month.
¿How can I check on the balance owing on my Flexible Credit Line at an ATM?
Balances shown on the ATM receipt and screens include amounts owing on your Flexible Credit Line.
- Sucursal Virtual
We invite you to apply for our on-line banking services, so that you may obtain greater details of your account balances and movements and receive important information regarding your Flexible Credit Line.
¿How can I check on information and movements with my Flexible Credit Line at a branch office?