Do you need a loan to bridge the gap?

Sometimes something comes up - and you're a bit short!

We're starting to lend slowly and can therefore only offer a very small group to take an overdraft to begin with. Therefore, we have set strict loan requirements which we hope to be able to expand in the near future.

Loan at the end of the month

Advance salary

If you receive your salary on your indó account, you can get 25,000 ISK in advance at the end of each month. The loan is repaid automatically at the end of the month when your salary arrives in your indó account.

See prepaid salary terms

Short free loan

Some months are more difficult than others, and sometimes it's hard to make ends meet. We believe that one should not have to take an expensive payday loan for the last grocery cart in the month - and we can offer a short, free loan if we know that it will be paid back in a few days.

Repaid automatically

You don't have to worry about repaying the money - it’ll be repaid automatically when money gets transferred to your account.

That way you don't have to postpone repaying the loan. This works just like getting a little advance on the salary a few days earlier - like in the good old days.

You can get 25,000 ISK in advance each month

You can get 25,000 ISK in advance from the 25th of each month until the beginning of the next month. You apply by clicking on the account at the top right of the homescreen.

You don't have to have a formal salary account at indó

You don't have to receive your salary directly into your indó account from your employer. We just need to see that there has been a regular deposit resembling a salary payment at the beginning of the last three months.

We really just need to trust that money will come in around the end of the month to collect the loan back.

Temporary loan to meet unexpected expenses

Overdraft

Overdraft is always expensive and therefore we don’t want you to carry it with you for long! You get even better interest rates if you make a plan to reduce the overdraft monthly!

See prepaid salary terms

Overdraft is always expensive!

Overdraft is an expensive loan and should always be seen as a temporary loan to meet unexpected expenses. We designed our overdraft with the idea in mind that it should be encouraging to get rid of it as soon as possible, so you get better terms with lower interest rates if you make a plan to decrease the overdraft monthly.

Make a plan!

You find the overdraft in "account" at the top right corner of your homescreen.

We recommend making a plan to lower it immediately - and thus get better interest rates. You can take a break from the plan anytime, note that you’ll pay higher interest rates during the break. Going back on a plan will lower them again.

How does overdraft work?

When you apply for an overdraft, you technically haven't borrowed the money. You are getting permission - or an overdraft - from us to borrow money. Once you have used up the money in the debit account, you start using the overdraft. Then you are getting a loan - and paying interest on that amount.

How much does it cost to have an overdraft?

There are no additional costs for taking the overdraft: no borrowing fees, change fees or other fees.

Overdrafts are expensive because of the interest. We charge you interest at the end of each month - on the amount you use from the overdraft. If you do not use the overdraft facility, you will not pay anything.

Loans to Spread the Cost During Expensive Months

Pay & Split

Some months are more expensive than others.

With Pay & Split, you can split a transaction for purchases you’ve already paid for – and borrow ¾ of the transaction. We’ll then distribute the loan evenly across the next 3 months.

The interest rate for a Transaction Split loan is 15.50%, with no additional fees. No setup fee, no prepayment fee, no payment fee, no transaction fee.

Remember to compare APR* when evaluating loan terms.

See Pay & Split terms

How Does Pay & Split Work?

With Pay & Split you can divide your purchase into four parts!

You pay the first part upfront, and we lend you the rest, dividing the loan into equal payments over the next 3 months. Each payment is due on the 1st of the month and is automatically deducted from your indó debit account – regardless of when you initiated the split.

How Do I Split?

You can apply for Pay & Split in the app by tapping "Account" in the top-right corner and selecting Pay & Split.

If you meet all loan requirements, you’ll easily see which transactions are eligible for a split by checking eligible transactions in the “New Split” screen. Simply choose the eligible transaction and select Split if you want to proceed.

How Much Does It Cost to Split?

Pay & Split is a loan with an interest rate of 15.50%. There are no additional fees. No setup fee, no prepayment fee, no payment fee, no transaction fee.

Keep in mind that all additional fees on loans can significantly impact your loan terms. That’s why all loan providers must disclose another percentage – the so-called APR* (Annual Percentage Rate). This figure reflects the full cost of the loan, including all fees, in a single annualized rate – making it easier for you to compare loan options.

What Transactions Can Be Split?

Most transactions between 20,000 ISK and 250,000 ISK can be split.

The only exceptions are transactions related to gambling, gift cards, cryptocurrency purchases, or cash withdrawals.

*APR (Annual Percentage Rate) shows the true cost of a loan over one year, including interest and any additional fees. It’s worth comparing APR when evaluating different loans. The APR (Annual Percentage Rate) on Pay &Split is higher than the interest rate, even though the loan has no additional fees. This is because loan interest rates are always calculated on an annual basis. The APR takes the loan term into account, so the percentage increases if the loan is repaid faster than over a year. This happens because it effectively costs you more to pay the interest over a shorter period. If the loan term were 12 months, the percentage would be the same.

Loan FAQ