When you’re applying for a short term loan, one of the first things you’re probably going to be wondering is how much it’s going to cost.
epepi.com try and make the loan costs and fees that our lenders may charge you as clear and transparent as possible.
Interest Rates Explained
Because loans are a financial product, legally we have to display something called Representative APR on our site, which at 1737% can look rather high. The interest rate is similar whether you’re applying for the lowest amount of £50 or the maximum of £1250.
However, APR (Annual Percentage Rate) is a rate which is expressed as an annual charge, but as payday loans are designed to be paid off WITHIN 30 days, this rate can seem very high. The OFT (Office of Fair Trading) states that legally we have to display an APR, but because in almost every case the loan will not be actually borrowed for a whole year, the APR is not always comparable to the amount that you will pay back.
Therefore, the actual interest rate is likely to be around 25% of your loan amount (i.e £25 on top of each £100 which is borrowed), but this can vary between lenders. So, it is always important to check your loan agreement once you have been accepted for a short term loan for the interest charges and/or additional fees before signing your contract and agreeing to their terms. For example, some lenders may charge extra for same day payments such as a one off fee of around £5, so always check this before applying.
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*Interest rates are an approximate guide as different lenders could charge varying amounts. Generally interest rates will be 25% of the loan amount (or £25 on top of each £100 borrowed). Please check with individual lenders for further information.
Straightforward Interest Rates
If your application is successful, it may be the case that you have the money straight into your bank account within the hour. It’s important to consider all factors before applying for a loan, especially costs and whether you will be in a position to repay the loan on the agreed repayment date. Our short term payday loans are ideal for those who are after cash to bridge the gap between paydays. However they are not recommended to be used to remedy you from long term money problems.
Where to get advice
Short term or Payday loans should only be used for short term financial needs and are not appropriate for longer term borrowing or if you are in financial difficulty. For more information please read our Short Term Responsible Lending Policy and view the Consumer Finance Association(CFA) Charter here and read the CFA Lending Code here.
There is plenty of free advice available online. We recommend starting at the Citizens Advice Bureau, or the Government debt advice site You can also go to an independent debt advice charity. All of these should offer free advice – do be wary of anywhere that offers to help you with debt in return for a fee.
Representative Loan Example: Borrow £180 for 28 days, Total amount payable is £225. Interest rate a. 1737% (default) – Interest payable is £45. 1737% APR Representative * The actual APR may vary from lender to lender. Sometimes transfers can take up to 24 hours depending on your bank
Short Term Loan Rates