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A payday loan is a short-term loan option offered to employed people in the UK. Many regulated online lenders offer payday loans to customers. However, the leading providers of short-term loans in the UK will vary in terms of loan options, interest rates, fees and charges. When choosing a payday loan, a representative £50 payday loans figure is often used for comparison purposes. The process begins by using a loan calculator to determine how much you would like to borrow, including the applicable interest rate, the loan term (duration), and the total cost.
Typically, a £50 payday loan direct lender will provide a loan calculator, post representative interest rates, and make it as easy as possible for you to qualify for £50 payday loans. The loan application process can be completed in as little as 5 minutes, after which you will receive an instant notification. Borrowers can expect the £50 payday loans to be deposited into their bank accounts within minutes, or hours. These unsecured loans are used for unexpected expenses, or to tide you over between paycheques. Payday loans compare more favourably than bank loans and bank overdraft facilities, which often require significant paperwork and processing times.
Whenever you borrow money from a lender, the cost of the loan will be determined by the duration you borrow the money for, and the APR (Annual Percentage Rate). In the United Kingdom, the FCA regulates the maximum APR permissible on payday loans. It is a good idea to use a £50 payday loans calculator to evaluate loans provided by multiple payday loans companies in the UK. Recall that you will need to slide the dial from left to right to toggle the amount you would like to borrow, and the term of the loan.
Several important considerations are factored into the interest rates on payday loans, including:
• The APR on a £50 loan. For example, if there is a 30% APR on £50, you can expect to repay £15 + the principal amount of £50. The APR is referred to as the interest rate, but it includes all admin fees, hidden charges and other costs associated with the loan.
• The APR is quoted on an annual basis for your £50 loan. However, you will not necessarily loan that amount for a full year.
• The difference between 30% APR and 3000% APR is easily illustrated. On a £50 payday loan or instant cash loan, 30% APR is the equivalent of £15 in a year. 3000% APR on a £50 loan is the equivalent of £1,500.
There are several ways to evaluate the loan options available to you with £50 payday loans. The best way is a loan aggregator platform which compares the loan amounts, APR, term and total repayment amount for each lender. For the purposes of quick and easy comparison, we have listed several payday loans providers and compared them on the basis of a specific payday loan amounts, and their representative APR rates.
There are hundreds upon hundreds of payday loan direct lenders in the United Kingdom today. Every single one of those lenders is different, so let’s have a look at what factors to consider and the payday loans to compare. To simplify the comparison, let’s assume a borrowing need of £50, which is typically the minimum amount offered by direct payday lenders.
1. Are They Licensed and Regulated?
It is absolutely imperative that the payday lender is licensed and regulated by the by the FCA (Financial Conduct Authority). If not, you leave yourself wide open to any number of problems of which you have no protection against. An FCA authorisation number is normally on the homepage of a direct payday loan lender, or alternatively, you can check the FCA register. Fernovo is fully authorised and regulated by the Financial Conduct Authority under registration number 674141
2. What Interest Rate Do They Charge?
In the UK, payday lenders legally have to state their interest rate charges as an annual percentage rate (APR). This can be a little confusing since most payday loans generally are supposed to be repaid within a month. What’s important to remember is that you will not pay the stated APR charge, instead you will pay a fraction of it depending on the amount you borrow and how long you have the loan for. The general rule of thumb is obviously the lower the APR the better, but the best payday lenders will tell you anyway the exact amount you are expected to pay back before you commit to the loan. Fernovo offers one of the lowest and most competitive APR’s in the UK.
3. Is There Online Application and Management Available?
In today’s digital age, there really is no excuse for not having the whole start-to-finish process online. Having the ability to not just apply online, but also to process and manage the loan online as Fernovo does, provides speed, efficiency, transparency and ease of use.
4. The Safety and Security of the Website
This is an area that is all too often overlooked, but is actually quite important. When you apply for loan, you are entrusting that lender with your personal and financial information and you need to know that the sensitive information you provide is kept securely and is not stolen. The URL must start with ”https” instead of ”http” as this indicates that your information is secure and protected from potential hackers. Fernovo has a valid trusted server certificate which uses a very secure protocol version that guarantees the utmost levels of security.
5. Are There Any Hidden Charges?
When applying for a direct payday loan, there are tons and tons of terms and conditions to wade through, which let’s be honest, most of us would not have the time or inclination to read. It is, however, important to do a little digging, as some lenders have hidden charges. There could be early repayment charges, late payment fees or even processing fees, but in all cases, any fees, charges or penalties should be made available and clear from the start.
When searching for £50 payday loans there are no shortage of lenders of payday loans to compare. No matter how urgent you perceive the need to borrow the money, you should always do your due diligence and find the best lender for you. Fernovo ensures the key requirements – cost, speed, transparency, regulation, accessibility and low APR – are all met. So, if you find yourself in the situation where you do need some small, but important financial assistance to tide you over till payday, then you can rest assured, with Fernovo you are in good hands.