The Kroo

Prepare for the unexpected with an interest rate of 24.9% EAR/APR representative (variable). No fees. No penalties. Phew.
Applications for the overdraft are by invitation only once you’ve opened your current account.

Overdraft cost calculator

Arranged limit

What are overdrafts for?

Surprises can be great. A bunch of flowers. A birthday treat. But surprise bills? Not so great. Which is where an overdraft can help. It’s a short-term safety net for when something unexpected happens. And the faster it’s repaid, the less it costs you to borrow. Simple.

So, for example, if you borrowed £1,000 on an arranged overdraft for 30 days, it would cost you £18.45 at an interest rate of 24.9% EAR/APR (variable).

No hidden fees. No penalties.

Depending on your eligibility, you can apply for an arranged overdraft of up to £2,500. We charge 24.9% APR representative interest and won’t hit you with any hidden fees or penalties.

We don’t tend to allow unarranged overdrafts (when you go overdrawn without an agreed overdraft or go over your agreed overdraft limit), but sometimes they can happen for technical reasons. If you enter an unarranged overdraft, we will charge the same interest rate as for our arranged overdraft.

The monthly cap on unarranged overdraft charges for the Kroo current account is £15. Further details about the cap, unarranged overdrafts and exceeding any arranged overdraft limits are below.

How does our overdraft compare?

You can use the representative APR to compare the cost of our overdraft with other providers because it gives you the annual rate of interest, including any other fees and charges.

It’s your overdraft

You can lower, raise or even settle up and cancel your overdraft whenever you like. It’s totally up to you, and you can do it on the Kroo app. And like all credit products, exact limits and eligibility will depend on your individual circumstances.

And we know things happen, so if you ever feel like you can’t manage or repay your overdraft, just let us know in our in-app chat and we’ll be happy to help.

Questions? Answers.

What do EAR and APR stand for?
EAR stands for the effective annual rate. This is equivalent to the total interest rate you'll pay if you're overdrawn for a year. Interest is paid on the amount you’re overdrawn by and on the interest that compounds from being overdrawn. EAR only reflects the effective annual interest rate and doesn’t include other fees (but you know, we don’t charge those).

APR stands for annual percentage rate. It also includes fees and charges, but since we don’t charge anything other than interest, our EAR and APR are the same.

Representative APR is the rate we currently offer to more than half of those who apply for our product, but since we offer only one rate, our representative rate is our actual rate.

Variable means we have the right to change the rate, but we’ll give you 30 days' notice if we ever increase it.
What is an unarranged overdraft?
Unarranged overdrafts are when you borrow more than your limit or without a limit. Kroo doesn’t provide unarranged overdrafts, so payments will typically be declined. However, there are some scenarios where a technical or ‘offline’ transaction (such as tapping through the barriers on the tube) may be added.

If a payment is processed causing an unarranged overdraft, we’ll notify you, and interest is charged at our standard arranged overdraft rate, but you will be asked to make a payment to bring the account back within its limit. If you enter an unarranged overdraft, we will limit the maximum monthly charge on the unarranged borrowing to £15 per month.

Monthly cap on unarranged overdraft charges

1. Each current account will set a monthly maximum charge for:
(a) going overdrawn when you have not arranged an overdraft; or
(b) going over/past your arranged overdraft limit (if you have one).

2. This cap covers any:
(a) interest and fees for going over/past your arranged overdraft limit;
(b) fees for each payment your bank allows despite lack of funds; and
(c) fees for each payment your bank refuses due to lack of funds.

Exceeding your arranged overdraft limit or being overdrawn without an arranged limit can impact your credit score, which can make it harder for you to borrow in the future.

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