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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:

  • Apply
  • 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.

Apply

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 the Data Protection Act 1998 and kept secure in accordance with our privacy policy.

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.