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How overdraft loans helps you manage personal expenses

Manage expenses with an overdraft loan

Learn more about how overdraft loans work and how to use them to manage your personal expenses effectively.

In a nutshell, an overdraft loan, is a convenient, short-term credit option linked to your current account, giving you immediate access to money, up to an agreed limit, whenever and wherever you may need it.

When do you need an overdraft loan?

If what’s coming into your account is not enough to cover what’s going out, an overdraft can provide a flexible source of additional funds to cover those extra expenses, giving you a little more room to breathe when money is tight. You also save on interest costs as you only pay interest on the amount you use.

There to make sure you have enough funds in your account, even when you may not, an overdraft is a good safety net that allows monthly debit orders and timely payments to be honoured even after you’ve exceeded your available funds, helping to protect your credit record and avoid late payment penalties.

How does an overdraft loan work?

  • An overdraft is linked to your current account, and you borrow money through your daily banking transactions account, making it easier to stay on top of your expenditures
  • This means there is no need to track or manage a separate credit account, or to transfer available funds between accounts
  • Designed as a revolving facility (your credit is automatically renewed as it’s paid off), an overdraft is a great solution for any temporary cash flow problems, unexpected expenses or emergency costs
  • Because you choose your ‘borrow limit’ (the excess amount you can spend on top of your available funds), you have full control over exactly how much you can borrow every month, so you can keep track of your finances and stay within an amount you can manage.

Take care

Just be careful though to not spend all your available funds, and all your additional overdraft, as exceeding your agreed negative balance can be a costly affair in penalties and interest rates.

Alternatively, there are other personal loan options for planned or specific once-off payments.

Revolving credit plan product detail
Revolving loan

Get access to your funds again when you’ve repaid 15% of your loan with the option to increase your original amount over time.

PER personal loan product detail
Term loan

Get the loan you’re looking for at the fixed monthly repayment amount and term you feel comfortable with

PER Overdraft facility product detail

As a credit facility on your bank account, your overdraft is always available when you run over budget.

Credit cards

Instant access to money you’re not carrying as cash. Money you can spend safely and easily in-store, online or overseas.

Student loan product detail
Student loan

Studying full- or part-time? Apply online for pre-approval on a student loan to fund your next-level education.