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I&M Bank Kenya - Overdraft on OTG

I&M Bank Digital Overdraft

The I&M Bank Digital Overdraft is a pre-approved revolving credit facility that is marked on your account when you opt in. It works silently in the background the moment your account balance is insufficient to complete a transaction, your Digital Overdraft covers the shortfall automatically, up to your approved limit.

How It Works

  • Step 1: Opt In

    Log in to your I&M Retail OTG app or web banking platform. Navigate to the Loans section, select Digital Overdraft, and opt in by accepting the Terms & Conditions. Your approved limit is displayed immediately.

  • Step 2:Transact

    Go about your normal banking. When your account balance is insufficient, your Digital Overdraft automatically funds the shortfall for Send Money, Paybill, and Buy Goods transactions up to your approved limit.

  • Step 3: Repay

    Repay at any time during the 30-day cycle through manual repayment on I&M Retail OTG app or web banking platform or let the Bank's automatic collection sweep recover the outstanding balance on your behalf. The sooner you repay, the less interest you pay.

  • Step 4: Reuse

    Once repaid, your full limit is immediately restored. No reapplication needed. Your Digital Overdraft is always ready when you need it next.

Benefits

<b>Instant Access to Credit 24 Hours a Day, 7 Days a Week:</b> There are no business hours, no queue to join, and no approval to wait for.

Instant Access to Credit 24 Hours a Day, 7 Days a Week: There are no business hours, no queue to join, and no approval to wait for.

<b>Pay Only for What You Use:</b> Digital Overdraft charges interest only on the amount you have actually drawn and only for the exact number of days it is outstanding.

Pay Only for What You Use: Digital Overdraft charges interest only on the amount you have actually drawn and only for the exact number of days it is outstanding.

<b>Revolving Access:</b> Every time you repay whether in full or partially your available limit is restored immediately.

Revolving Access: Every time you repay whether in full or partially your available limit is restored immediately.

<b>Flexible Repayment on Your Terms:</b> The auto-collection feature sweeps inflows into your account automatically or you can make a manual repayment at any time via the Retail OTG app or web (full or partial).

Flexible Repayment on Your Terms: The auto-collection feature sweeps inflows into your account automatically or you can make a manual repayment at any time via the Retail OTG app or web (full or partial).

<b>Fully Digital:</b> No Branch Visit, No Paperwork, No Delay

Fully Digital: No Branch Visit, No Paperwork, No Delay

Overdraft on OTG FAQ's

The I&M Digital Overdraft is a flexible short-term credit facility that allows you to overdraw your account up to a pre-approved limit to meet immediate cash flow needs. It is available instantly and is repaid automatically through inflows into your account.

You can activate the overdraft service by opting in through our digital platform (OTG) and accept the terms and conditions. Once opted in, you can check your limit and begin using the overdraft.

The amount you can utilize through the overdraft is equivalent to your assigned limit. Limits range from KES 20,000 to KES 100,000, and once your limit is active, you can utilize as little as KES 1.

The overdraft must be cleared within 30 days from the first drawdown, after which it is considered overdue. Note that any credit into your operative account will be automatically used to offset the outstanding overdraft amount.

Yes. You can overdraw your account multiple times as long as your total usage does not exceed your assigned limit.

The overdraft can be used for common banking transactions such as:
  • Account to M-PESA
  • M-PESA Buy Goods
  • M-PESA Paybill
Note: The overdraft cannot be used for loan repayments, credit card payments, savings products, or standing orders.

  • A one-time processing fee of 4%, charged at the point of disbursement, subject to a 20% excise duty.
  • Daily interest, calculated on the amount utilized.
  • A penalty interest of 15% is applied on any overdraft not cleared within 30 days from the first drawdown.

  • For overdrafts above KES 20,000, a credit life insurance fee of 0.06% per month (minimum KES 50) is charged monthly.
  • No insurance charge applies for overdrafts KES 20,000 or below.

Yes, a PHFC is Policy Holder Compensation Fund (PHCF) fee and a charge of 0.25% of the insurance premium is applicable for insured overdrafts.

All inflows into your operative account will automatically repay the outstanding overdraft. You may also initiate manual repayments from other linked accounts through the OTG and you can repay partially or fully.

You will receive a monthly overdraft statement summarizing your transactions and fees Mini statements via SMS. You can also access your overdraft transaction details on the I&M OTG app/web under the loans menu.

Your limit may grow over time based on your repayment behaviour, credit profile, and usage of other I&M services.

Your overdraft limit is based on how your credit assessment which includes your income, how you’ve repaid past loans, and your overall borrowing history.

For assistance, please contact I&M Bank customer care via email at [email protected] or call:+254 20 322 1000, 0719 088 000, 0732 100 000