Payday Loan Charges
Payday loans carry a fixed flat rate fee and nothing more. You can apply for any amount between £80 and £1,000. There are no hidden or administrative costs:
For every £80 you borrow you'll typically pay around £20.
The calculated APR% depends on the duration of your loan and will be presented to you when you apply.
Representative 1990% APR
The APR% for Payday Loans may seem quite high at first glance. Taking into account that all setup fees and administrative costs are included and since most Payday Loans are paid over a period of no more than 30 days a yearly APR% might be misleading.
Comparing Payday Loans and Personal Unsecured Loans
A typical unsecured loan of £5,000 borrowed over 60 months: • Payments would be approx. £135.16 per month. • Total repayment £8109.88 • Representative APR 23.1%. • Actual Repayment: 62%.
Since this kind of loan is spread over 5 years the APR is indeed small, but the actual payment over this period would be £3109.88 for a £5,000 loan, which is 62% compared to 25% actual cost of credit of a payday loan.
1990% Representative APR
Representative example: £100 borrowed for 28 days. Annual interest rate of 300% (Fixed). Total amount payable by one repayment is £125. 1990% APR Representative.