Deciding on a loan isn’t just about paying back the loan amount. All loans come with additional charges making the amount you will repay higher, and these should be considered carefully before agreeing to your loan.
Though charges may differ from lender to lender, we strive to provide you with the most accurate, potential cost of your loan. You should always check your lender’s specific charges (these can be found on their website and in the loan agreement) but use this example as a first port of call before being matched with your lender.
The following illustrates the charges you will incur for a payday loan, taken out for a period of 28 days and repaid, in full, in one single payment.
*Calculation based on a 28 day payday loan
All companies within the financial industry in the UK are legally required to present interest rates as an Annual Percentage Rate (APR). APR is designed for long term loans taken for a period of 12 months or more and is often a good way of comparing loans. Payday loans, on the other hand, are taken out for a period of 30 days or less. The APR you see here is representative of a whole year, rather than the short period of time that you are borrowing for.
Therefore, the actual APR that you incur, will be calculated according to the length of your loan. You should be presented with the actual rate by your lender upon a successful match. You will also be presented with the breakdown of your repayment, illustrating the exact amount you will repay on top of your loan amount.