Authorized Overdraft and Cash Facility in Morocco 2026: Rates, Conditions and Alternatives

1. Authorized vs unauthorized overdraft: crucial difference

Authorized overdraft is a written agreement between you and your bank granting you a debit authorization (typically 500-30,000 MAD per profile) in exchange for debit interest (11-14% annualized) charged pro rata of days of use. This authorization is revocable by the bank with 30-60 day notice.

Unauthorized overdraft occurs when your account goes negative without prior agreement or beyond the agreed ceiling. In this case, the bank charges in addition to the debit rate (which can climb to 16-18%), an intervention commission of 60-150 MAD per operation authorized in overdraft + reminder letter 25-50 MAD, and risks operation rejection (bad check: penalty 250-500 MAD + Payment Incidents Center registration).

Consequence: the real cost of an unauthorized overdraft can reach 25-35% annualized on small amounts, vs 12-14% for authorized overdraft. Hence the importance of having a written agreement signed with your bank.

2. 2026 rates: 8 Moroccan banks comparison

Annualized debit rates and commissions applied in May 2026 on authorized overdraft for domiciled salaried.

Rate varies according to your bank seniority, your score and the regularity of your income (domiciled salary, monthly transfers). Best profiles (5+ years seniority, salary 15,000 MAD+) access the bottom of the range.

Concrete calculation: on 10,000 MAD overdraft for 15 days at 13% annualized rate: interest = 10,000 × 13% × (15/365) = 53.40 MAD. If no additional charged operations, total cost ≈ 55-80 MAD.

3. How to activate an authorized overdraft on your account

Standard procedure with your bank. Overdraft is never automatic: requires formal request and signed written agreement.

• Step 1: make an appointment in branch with your advisor (or request via mobile app for most digital banks: AWB, CFG, BP)
• Step 2: present your file: last 3 payslips, last 6 bank statements, CIN, address proof
• Step 3: the bank analyzes your account behavior (salary regularity, absence of incidents, average balances) and sets a ceiling
• Step 4: signing of overdraft agreement specifying: authorized ceiling, debit rate, commissions, cancellation terms (30-60 day notice)
• Step 5: immediate activation or within 24-48h. Overdraft is usable from activation without additional formality

Standard ceiling: most banks grant between 1× and 3× the domiciled net monthly salary. Salary 8,000 MAD → ceiling 8,000-24,000 MAD.

4. Hidden fees and commissions: what the bank doesn't say

Beyond apparent debit interest, overdraft generates several often ignored fees:

• Highest overdraft commission (CPHD): 0.025-0.05% of highest monthly overdraft reached, charged quarterly
• Intervention commission: 60-150 MAD per operation authorized while insufficient balance (before you've reached agreed ceiling). Cumulative several times per day
• Special account maintenance fees: some banks charge supplement 20-40 MAD/month for structurally overdrawn accounts
• VAT on commissions: 10% on most commissions
• Special statement fees: if you request quarterly debit interest detail, 50-100 MAD
• Account seizure fees: if the bank transfers your file to litigation after sustained overrun, 200-500 MAD

5. When to use overdraft (and when to avoid it)

Cases where authorized overdraft is relevant:

• Temporary lag between an expense (bills, purchases) and salary income within 5-15 days
• Absolute emergency solution (auto repair, medical expenses) while awaiting consumer credit or savings advance
• Small amount (1,000-5,000 MAD) over very short duration (3-10 days)

6. 5 less costly alternatives to overdraft

For cash needs other than occasional-short, several alternatives exist in Morocco in 2026:

1. Savings advance (passbook account, LEP, blocked passbook): if you have 20,000 MAD on a savings account at 2.5%, bank advance costs 4-6% (vs 12-14% overdraft). Net annualized cost 1.5-3.5%. Available within 24h.

2. Wafasalaf/Salafin/CFG Crédit Express mini-loan: consumer loan of 5,000-50,000 MAD released in 24-72h, rate 9-12%.

3. Revolving credit card: for purchases < 50,000 MAD with repayment in 3-12 installments. Rate 14-22% so to compare finely, but spreadable.

4. Deferred bank card payment ('end-of-month' option on premium AWB Gold/Premium cards): month purchases debited on 5th of following month, free.

5. Documented family loan: for inter-family needs, a private deed loan with debt acknowledgment and repayment plan is legal and free.

7. Practical cases: compared costs over 30 days

For 10,000 MAD cash need over 30 days, comparison of real costs.

Reading: for 10,000 MAD over 30 days, savings advance (if owned) remains the cheapest solution. Authorized overdraft is competitive on very short term (< 15 days).

8. Overdraft cancellation: bank or customer initiative

Cancellation by the bank: the bank may cancel your overdraft agreement with 30-60 day notice. Possible reasons: repeated overruns, lack of salary domiciliation, scoring degradation, end of business relationship.

Cancellation by the customer: you can cancel your overdraft at any time by registered letter. Cancellation takes effect within 8-15 days. You must regularize the negative balance within the allotted time.

Practical consequences: overdraft cancellation does not mean account closure. Your account remains open but without debit authorization. All direct debits and checks beyond balance will be rejected.