Repayments and fees
Do customers only pay interest on funds used?
Yes. Interest is only charged on the amount drawn, not the full approved limit. Interest rate is Annual Percentage Rate (APR), meaning the total yearly cost of a loan, including interest and most fees, expressed as a percentage. Interest is calculated daily and applied weekly.
Are there any establishment or early repayment fees?
No. There are no establishment, transaction or early repayment fees.
An ‘annual fee’ does apply, which is a fixed cost charged to keep the overdraft facility open, based on the approved limit. It’s applied at the start and then annually. Customers only pay interest when they draw funds, but the annual fee still applies even if they don’t use the facility.
How are repayments structured over the 5‑year term?
Repayments are based on the balance of the loan fully amortising over a 5-year t
What break fees apply if the client repays early?
The client can clear the balance of the loan and retain the limit with no break costs or fees applied. Please note, drawdowns reset repayments over 5 years, however repayments reduce the balance but don’t reset the term.