Joint overdrafts and personal loans

Before we can issue a joint overdraft or joint personal loan to anyone, we’re required to make sure the borrowers can manage repayments without getting into financial hardship. It’s part of our responsible lending obligations. 

If one borrower can’t or won’t repay a joint overdraft or personal loan, the other person will be responsible for repayments. This is called ‘jointly and severally liable’.

No one likes to think about relationship breakdowns or the death of a loved one. But it’s a good idea to know what to expect. 

As hard and uncomfortable as it might be, talk together about what happens if one of you can’t make repayments. It’s a good idea to include your whānau in the conversation.

We’re required to assess whether you can manage the repayments on your own. We may then offer you an overdraft or personal loan in your own name. It will also help us to see whether a different repayment amount or frequency might be better for you. 

If our assessment shows you can’t afford an overdraft or personal loan in your own name, we’ll work with you to find another solution. We may also be able to provide financial hardship assistance (e.g. a repayment plan) to help you through the tough time.

When a loved one dies, we can help you sort out their finances. Find out more about deceased estates.