Cheap short term loans are now subject to an industry-wide interest rate cap
The means that the maximum daily interest rate is 0.8% a day. The borrower of short term loans will never pay back more in interest than 100% of the initial loan value. This provides peace of mind for many customers and we are proud to be one of the leading short term loans direct lenders on the market today. Where many of the most prominent short term loans lending brands opt to charge this maximum daily interest rate, our average daily interest rate is a great deal lower than this.
More Useful Additional Information
Due to the high-risk nature of this type of lending, many borrowers will generally pay a higher rate of interest than they would with a conventional long-term loan. This is because these short loans are a form of unsecured borrowing. The lender has no security against the loan itself, unlike with secured borrowing such as a mortgage or higher purchase loan on a car, for example. Lenders, therefore, will charge higher interest rates to their customers due to the increased exposure to the risk of non-payment and bad debt circumstances.
Here at Fast Loan UK, we mitigate against this risk by carrying out thorough credit and affordability assessments, designed to protect you just as much as us as short term loans direct lenders. We have also built strong bonds with our customers and long-term, friendly relationships. Therefore, our lending is generally cheaper than many of our competitors. If you require more information on borrowing or expert advice, please contact the Money Advice Service for impartial, independent financial advice.
- You’ll receive immediate access to funds when you’re in urgent need or suddenly face unexpected expenses?
- The best short term loans are quick to obtain, with https://www.paydayloansohio.net/cities/blanchester/ often funds being deposited into your bank account within hours if you’re approved.
- They are a flexible option since you can pay over a period of time in instalments or a lump sum.
- Small short term loans, especially if you have bad credit, can be costly compared to other credit facilities available, due to the higher interest rates involved
- Some short term loans UK direct lenders incorporate additional fees which makes the cost of borrowing much higher. Please note, Fast Loan UK is a transparent lender, regulated by the FSA and does not charge you additional fees.
Therefore, if a borrower decides not to repay the loan, the lender could simply take repossession of the borrower’s home or property in return
When taking out the best short term loans in the UK, it’s important to think carefully about your circumstances and whether you can afford the repayments you are requesting. You need to ask yourself whether borrowing the money is going to help plug a hole in your immediate financial situation, without causing further trouble down the line. It is not recommended to prolong long-term financial problems with short loans of this nature, as it could just make the problem worse for you later down the line.
If you think you are experiencing financial issues and struggling to pay your bills and manage your debt. We would advise you to seek free and independent advice from debt charities such as Citizens Advice. Additionally, always check your credit rating with credit check providers.
This is dependent on how much you wish to borrow, with our customers able to borrow anywhere between ?50 and ?2000. It also depends on how long you choose to take out the loan for with the longer you choose to repay meaning a higher amount of interest in total. You will need to decide on if you would rather have lower repayments each week or month, or a lower overall short term loans total to repay. Through us, you will never have to pay 100% more than what you borrowed originally and when you go through the application process, you will see before signing your agreement how much you will be paying back. You’ll also be able to discuss any queries you may have with your dedicated Customer Care