Payday Loans - Frequently Asked Questions
How do I apply for Payday Loans?
It’s free to apply with Payday Bank. All you need to do is to fill in a few details
on our short form, and that information will be sent to our lenders. If your application
is approved, the cash will usually be in your bank within a few hours. You then
repay the payday loan
when you get paid. So it’s:
- Get a decision
- It’s in the bank.
Decide how much you want to apply for and fill in the short online form. We'll search
for a lender for you, and if approved, a loan agreement will be sent to you online
within minutes. In some cases, your lender may need some verification of details
such as employer or salary, but these can usually be sent online.
If you agree to the lender's offer, the payday loan fast will be transferred to
your account, often on the same day. Once you get paid, you repay the loan and interest.
How much can I borrow with Payday Loans fast?
The exact amount you can borrow depends on your personal circumstances but loans
are available from £80 to £750.
When will the Payday Loan clear in my account?
Typically, once approved, your loan will be available in under 24 hours,
and quite often within the same hour. In rare cases, it can take up to two days,
depending on the lender and whether your account can receive faster payments.
As a rough guideline, if you want your loan money available on the same day, it's
advisable to apply before 3pm to increase the chances of this.
What are the charges for a Payday Loan?
There are no application fees with Payday Bank. Our service is completely free.
For the payday loan itself, charges and interest vary between lenders.
As a rough idea, you’ll normally pay back around £29 per £100 borrowed, with an
APR of 2670%. Please see our representative example for more information.
Why is your APR so high?
We’re obliged to show the Annual Percentage Rate as a way to allow loan products
taken over different lengths of time to be compared. The difficulty with that is
short term loans, such as this loan, end up having a rather inflated amount due
to the amount of time the loan is for. As a result, while you repay about 29% in
real terms, the APR is about 2670%, as it assumes you will repay that amount every
month with compound interest.
These types of financial products are generally a more expensive way to borrow money in the short term,
but this is because they’re designed for the short term only, and are also a generally
higher risk product for the lender than a credit card or an overdraft.
We tend to think of it as being more like the difference between a taxi or a bus.
A bus is cheaper, and takes longer. A taxi is more expensive, but much more convenient
and goes straight to your destination. With a payday loan, the cash is in the bank
fast, and you repay it quickly.
Still confused about APR?
When will I need to repay the loan?
Terms and conditions vary, but typically you will be required to repay the amount
of credit you borrow plus interest charges within 28 days after you enter into the
loan agreement using your debit card. This will be done for you, so you don't need
to worry about forgetting.
While it's possible in some circumstances to extend the repayment period, this does
increase the amount you'll need to repay. You should think carefully before doing
this as pay day loans are designed as a short term finance solution and may be unsuitable
for borrowing over a longer period. Please see our
Responsible Lending page for more information.
What is Continuous Payment Authority?
Some lenders use CPA (continuous payment authority) to retrieve payment. This means
that you authorise the lender to withdraw the funds from your bank account. They
can also make multiple attempts to withdraw the money if it is not available. If
you want to cancel your CPA, you can do this by contacting the lender or by contacting
your bank and requesting a cancellation.
Is the information I submit when applying secure?
Yes. All your personal data is kept secure and confidential. We only keep it for
as long as necessary. All the information you provide is stored in compliance with
If further information is required, the caller will always be discreet and your
loan will not be discussed with anyone except you.
Can I use Payday Loans to clear existing debts?
These types of loans are a
short term solution and can be a straightforward alternative to unauthorised
overdraft charges or missed payment charges. However, short term loans are not a
long term solution by themselves, as the charges can easily mount up.
If you are experiencing financial problems and have mounting debts, we would strongly
advise you not to take additional loans from any credit providers.
You can get free advice and support from:
The Citizens Advice Bureau
The National Debt Helpline
The Consumer Credit Counselling Service
PaydayBank offers applications for the UK. For a 12 month loan solution,
we can refer you to our sister site - 12 Month Loans.