First, we are going to indicate the characteristics of overdraft and hire purchase. The overdraft service is a pre-approved limit that the current account can be overdrawn within a predetermined period. Also, overdraft interest is calculated on the amount of the overdraft on a daily basis and charged to the account monthly at an agreed interest rate. If the overdraft didn't be incurred, customer no need to pay any interest but the customer should pay the commitment fee and annual review fee. Next, hire purchase is a special type of loan arrangement in that acquisition of the assets is completed by way of installment finance. Usually the asset sold to the purchaser doesn't remains with the purchaser. The ownership of the assets remains with the purchaser.
Second, we will point out the reasons of choose Hang Seng Bank be our assignment object is Hang Seng Bank is a popular bank in Hong Kong because a huge number of people will use their services. Also, they are very famous and have a good company image in Hong Kong. Furthermore, we can find their brand and ATM anywhere in Hong Kong. Therefore, we select Hang Seng Bank is our assignment object is Hang Seng Bank. About the reasons of pick overdraft and hire purchase services are our searching target is they are the common banking services in Hong Kong and a lot of people will use this service so we are going to analyze these two banking services.