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All overdrafts are subject to our assessment of your circumstances and are repayable in full on demand. You must be aged 18 or over to apply.
If you’re looking to borrow money, it is important you compare and choose the right options for you based on your circumstances. See your borrowing options.
Receive text message alerts – If we have a mobile number for you, we’ll help you keep an eye on your balance. If you use our Mobile Banking app, then you can select to receive push notifications when your balance after pending falls between £0 and £50. These can be turned on or off in the app through your notifications settings and will be applied to all your current accounts.
How to apply for an overdraft
If you already have a current account with us, you can apply for an arranged overdraft in branch or through Internet, Mobile or Telephone Banking. Arranged overdrafts are available to customers aged 18 or over and are subject to our assessment of your personal circumstances. They are not available on our Under 19s, Smart Start and Basic accounts.
Overdraft FAQs
Take a look at our frequently asked questions.
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An arranged overdraft allows you to borrow up to a limit based on your requirements and personal circumstances and agreed with us in advance. You can apply for an arranged overdraft if you have a Classic, Club Lloyds, Silver / Club Lloyds Silver, Gold / Club Lloyds Gold, Platinum / Club Lloyds Platinum, Premier / Club Lloyds Premier, Student, Graduate or Select account.
Duration of arranged overdraft
Your arranged overdraft will continue indefinitely unless we specify an end date or you ask to end it. We will carry out a review of your arranged overdraft at least once every 12 months.
You need to be 18 or over to apply. How much we lend depends on our assessment of your personal circumstances. All overdrafts are always repayable on demand. We can also reduce your arranged overdraft limit at any time. We will normally give 30 days’ notice before making any changes.
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If you do need to use your arranged overdraft, you’ll pay daily arranged overdraft interest at the end of each day making it easier to keep track of what’s going out.
If you use your arranged overdraft but pay it back before the end of the day, then you won’t pay any arranged overdraft interest for that day.
You can keep track of your balance through internet or Mobile Banking, in branch or through Telephone Banking.
If you have an interest-free amount with your arranged overdraft you’ll only pay daily interest if you borrow more than the interest-free amount.
Daily arranged overdraft interest is charged at the end of each day that you use your arranged overdraft, making it easier to keep track of what's going out of your account.
If you go over your limit
If you don't have enough money in your account or enough available arranged overdraft, we may either let you borrow through an unarranged overdraft or we will refuse to make the payment. We won't charge for either of these but if we refuse to make the payment, then this could mean your mortgage or rent as well as other commitments may not be paid and some suppliers may charge you fees for missing those payments.
Read our Personal Banking Terms and Conditions & Banking Charges guide (PDF)
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There are many ways to manage your money more easily and avoid unnecessary arranged overdraft interest
Using any of our banking services, like Telephone Banking, Internet Banking and Mobile Banking, can help you keep a closer eye on your bank balance.
Our mobile alerts service offers a simple way to stay on top of your finances without even having to think about it.
Managing your money
Mobile Banking can help you manage your money on the go. It’s free for all our current account customers. We don't charge you for Mobile Banking but your mobile phone operator may charge for some services.
As part of our mobile alerts service, if we have a mobile number for you we’ll send you text message alerts to help you manage your balance.
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You can either reduce or apply to increase your arranged overdraft limit at any time via Internet or Mobile Banking in just a few simple steps.
To do this, just sign in to your Internet Banking or Mobile Banking app and select ‘More actions’ on the bank account that you have the arranged overdraft set up on. Then select ‘Overdrafts’ and follow the on-screen instructions to select the new arranged overdraft limit you would like.
From mobile, select ‘Overdrafts’ from your bank account menu, or click the ‘Your Overdraft options’ link.
If you are applying to increase your arranged overdraft limit you can benefit from an instant online decision and if approved your new limit will be ready to use immediately.
If you would like to talk to someone about amending your arranged overdraft you can do this in branch or over the phone.
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There’s no need to reduce or remove your arranged overdraft if you aren’t actively using it, it’s there as a safety net if you do need it and you only ever pay for the amount of the arranged overdraft that you use.
If you do need to remove your arranged overdraft, you can do this straightaway if your account is in credit. If you remove your arranged overdraft, we might not be able to offer you the same arranged overdraft limit again in the future.
To remove your arranged overdraft, your account needs to be in credit. Log in to Internet Banking, select the ‘More actions’ button on your current account, then choose the ‘Manage overdraft’ button (found in the ‘Overdraft’ dropdown menu). Set your arranged overdraft limit to zero and select the ‘Remove’ button. You can also do this through Mobile Banking.
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Grace period
We make payments from your account shortly after midnight at the start of the due date. If your payment date falls on a non-working day, then we will try and collect your payment the next working day.
If you don’t have enough funds in your account at this point to make a payment, we will try the make the payment again after 2.30pm the same day. This gives you the chance to put extra funds into your account so that we can make the payment. The funds need to be available to use straight away, so you could transfer money from another personal account you have with us via Internet, Mobile or Telephone Banking or pay in cash over the counter in branch.
For Cheque and Direct Debit payments, if there are not enough funds in your account at 2.30pm the payment will be returned and you may need to make alternative arrangements to make the payment.
For Standing Order and Future Dated Payments we will try to make the payment on the next working day after the payment was originally due. If there are not enough funds in your account at this point, the payment will be returned and you may need to make alternative arrangements to make the payment.
If a payment takes you into any arranged overdraft, you have until the end of the day to pay money into your account to avoid daily arranged overdraft interest for that day.
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Applying for an arranged overdraft won’t affect your credit score, but using an arranged overdraft increases your overall level of borrowing and may affect your credit score.
Important legal information
Lloyds and Lloyds Bank are trading names of Lloyds Bank plc. Registered office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales No. 2065. Lloyds Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278.
We may monitor or record telephone calls to check out your instructions correctly and to help us improve the quality of our service. Calls from abroad are charged according to the telephone service provider’s published tariff. Not all Telephone Banking services are available 24 hours a day, 7 days a week. Please speak to an adviser for more information.