What is the £1,000 Overdraft (Planned Borrowing)?
The M Account for Business has an option for Overdraft (Planned Borrowing), should you wish to request it. Requests for an Overdraft (Planned Borrowing) will be subject to a successful credit decision.
There’s a £1,000 borrowing limit. You’ll pay an Overdraft (Planned Borrowing) interest on whatever you use. It’s repayable on demand, which means you need to repay the outstanding balance whenever we ask, although we’ll normally give you notice. One £1,000 Overdraft per business customer.
Fees, Charges and Interest Rates
| Interest Rate Per Annum (%) | Representative Interest Rate *EAR (%) | |
|---|---|---|
| Overdrafts (Planned Borrowing) £1,000 and under (if requested and your application is successful) | 8.50% per annum over the Bank of England Base Rate | 13.30% |
| Unplanned Borrowing | 29.25% | 33.50% |
The interest rate for Overdrafts (Planned Borrowing) tracks Bank of England Base Rate (BoE Base Rate). BoE Base Rate is set by the Bank of England and can change at any time, so the amount you pay in interest may change. If BoE Base Rate is less than zero at any time, then until it is greater than zero, it will be deemed to be zero for the purposes of calculating the rate you pay. Refer to M Account for Business Tariff Guide for fees and charges.
Important information
- This is a short-term facility covering terms up to a maximum of 12 months
- The Overdraft is repayable on demand.
- *EAR (Effective Annual Rate) - The Effective Annual Rate is the cost of borrowing on current accounts. This takes into account the rate of interest charged, how often it’s charged and the fact that if interest is not paid, you’ll pay interest on interest. The EAR can change.
- If you change your mind about taking out an Overdraft (Planned Borrowing), you have a legal right to cancel it within 14 days from the day after it is available on your account, or from the day you receive your Agreement, whichever is later. If you do want to cancel, you will need to repay any outstanding balance, interest and fees within 30 days of the date you cancel it. You can reduce or remove your Overdraft (Planned Borrowing) at any time by repaying any outstanding balance, interest and fees. You can cancel, reduce or remove your Overdraft (Planned Borrowing) by calling us on 0800 7560800 or by writing to us. If you do not cancel, the Overdraft (Planned Borrowing) will continue until ended by either you or us.
Frequently asked questions
No arrangement fee is payable in year 1.
Overdrafts (Planned Borrowing) outside the £1,000 offered may be available subject to eligibility and status.
Yes, you’ll only be charged interest on the amount of Overdraft (Planned Borrowing) that you use.
Yes. This Overdraft is subject to an annual renewal.