An overdraft is an on-demand credit facility that gives you increased flexibility to manage your day-to-day finances, providing you with a safety net for when something unexpected arises. It is a short-term way to borrow money through your linked current account.
Types of overdraft
An overdraft is often referred to as an 'arranged overdraft' or an 'unarranged overdraft'.
- An ‘arranged overdraft’ is a credit facility, that enables you to transact from your linked current account even when your account balance goes below zero. An arranged overdraft has an agreed limit, approved by Handelsbanken in advance.
- An ‘unarranged overdraft’ occurs when you either exceed your arranged overdraft limit, or you continue to transact on your current account after your balance goes below zero, without having a pre-approved arranged overdraft. Continuing to transact on your account without a pre-arranged overdraft, or that exceeds your approved credit limit, may result in payments not being made.
It is important to remember that both types of overdraft have interest charges and additional fees that may apply. In general, ongoing and excessive use of an overdraft facility may have an impact on your credit file.
Features and benefits of an overdraft
- Linked to your current account for easy access
- A single interest rate charged on the total funds you use from your arranged overdraft
- Overdrafts are visible through our online banking and mobile banking channels, or you can call Customer Support to find out your arranged overdraft usage / account balance when overdrawn
- Option of choosing 'until further notice' or a 'fixed expiry date' on your arranged overdraft
- Request changes to your overdraft limit by contacting your account manager