Overdraft Facility

Arranged overdraft on the current account.

The overdraft facility allows the current account to be overdrawn up to an agreed limit. It is flexible, but usually expensive. If used on a permanent basis, refinancing into a cheaper installment loan is often advisable.

The relevant statutes

§ 504 BGB

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Related terms

Borrowing Rate
Bank Transfer

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General explanation for self-help, not legal advice (RDG). Individual cases may differ: if in doubt, contact a consumer advice center or a lawyer.