Payday Loan Charges

There are no catches and no long-term payment deadlines to remember – things are kept as simple as possible from beginning to end.

Payday loans can be applied for in sums ranging from £100 up to £1,000.

So, what can you expect in terms of interest charges and general repayment of your payday loan?

To keep things as simple as possible, our panel of lenders charge a flat rate fee for every loan amount borrowed, repayable after no more than 30-days. For details of how much you can therefore expect to pay on the various loan amounts on offer, take a look at the following table of charges (please note these charges are for illustrative purposes only and may vary).

Your Loan Amount Your Payback Amount
£100 £124
£200 £248
£300 £372
£400 £496
£500 £620
£600 £744
£700 £867
£800 £992
£1000 £1240

Representative Example: Amount of credit: £200 for 30 days you would repay a single payment of £248.00. Interest is 292% per annum (variable). Representative 1269.7% APR

The problem with the APR figures attached to a payday loan is the way in which they offer very little insight into the actual charges the loan will incur. What has to be understood is the way in which the APR a payday loan carries not only has little relevance given the fact that it is a 30-day loan, but also the way in which it replaces all other standard charges like arrangement and admin fees.

Contrary to popular belief, payday loans are more often than not exponentially cheaper than the fees and penalties associated with bounced cheques, breached overdrafts and missed bill payments.

Payday Loan Vs Unsecured Loan

Here’s a brief look at a working example of how a payday loan really does measure up against conventional loans as we know them in the UK today:

  • Loan Amount – £3,000 to be repaid over a period of 36 months+
  • Monthly Payments – In the region of £151
  • Total Sum to Repay – Approximately £5,442
  • Representative APR – 53.9%
  • Actual Repayment Interest – 55.1%

Here we can see that although the representative APR appears to of a more reasonable level, over the course of three years it in fact sees a rather vast sum of interest being paid on the loan. An APR can therefore only realistically be considered if weighed up against the timespan of the loan and thus the overall amount of interest to pay.