Payday Loan Charges

Payday Bank does not charge any extra arrangement fees, hidden charges or any other charges at any point in your loan. You will not be charged membership or any of the other ways a lot of other companies try to hide extra customer charges. Instead, your payday loan will only carry a fixed flat rate fee - no catches, no surprises.

The APR shows the interest that would be charged for a loan if it were extended for a year with compound interest. This can be slightly confusing, as payday loans are designed to be repaid in full within a usual length of 28 days.

Still confused about APR?

You can apply for a payday loan of any amount between £80 and £750, although most first-time borrowers will be more likely to be accepted for an amount under £400. The exact interest you will pay for a payday loan fast will be presented to you when your application is accepted, and will be a clear part of your agreement.

What you can expect to pay on your Payday Loan fast

For every £80 you borrow for 28 days, you pay £20

This is a rough example, and exact amounts may vary slightly from this. However, they won't vary by much but here is a typical example.

Average cost of credit 25% for a 28 day loan.

Representative APR 1737% (variable)

The APR% can be somewhat confusing when it comes to the actual cost of your loan, taking into account that all setup fees and administrative costs are included and that payday loans are designed to be paid within an average of 28 days.

In most cases taking a payday loan can be much cheaper than paying overdraft penalties, bounced cheques or unpaid bill charges

Comparing Payday Loans and Personal Unsecured Loans

An example of an unsecured loan of £3,000 borrowed over 36 months:

Payments would be approx. £151.19 per month
Total repayment £5442.84
Representative APR 53.9%
Actual Repayment: 55.1%.

Since this kind of loan is spread over 3 years the APR is a fraction of that of a payday loan, but the actual cost of the loan paid back is significantly higher, at £5442.84 for a £3k loan which is 55.1% compared to 25% actual cost of credit of a payday loan, when borrowing for a 28 day period. At those rates, that would be more than double any of the amounts in the table above!

If you are looking for a long term loan to pay with installments over 12 months, you can apply at our sister site, FlexCredit, which offers more flexible credit. Please be aware that processing this kind of loan may take longer.

Please note, pay day loans are designed to be a short term solution and may be unsuitable for borrowing money over a longer term.