We charge 25% interest on top of the amount borrowed for our payday loan service to get you your month end money. So, if you borrowed £200 you would need to repay £250 on your pay day.

There are no hidden charges with Payday Express – interest on your payday advance is always 25% of the loan value, a competitive rate across payday loan lenders.

For ease of understanding, here is a table showing the total charge for credit, and the corresponding interest charged for different loan values:

Representative Loan Example

If you borrowed £80 for 28 days you would repay £100, with an interest rate of 25.0% fixed. 1737.2% APR representative. All loans are subject to status and affordability. Customers must be over 18.

When applying for a pay day loan, we will calculate your exact APR based on the number of days before your loan will be due for repayment. This will be shown to you before you need to accept the payday loan agreement.

What is APR and why is it so high for payday loans?

All Consumer Credit providers are required to quote APR when discussing costs of loans. The reason for this is to enable consumers to compare the loan repayment rates. However, while this is helpful when comparing like products, it is unhelpful when trying to compare the repayment rates for unlike products, such as a 1 year personal loan with a 25 day payday loan.

APR stands for Annual Payment Rate and is, therefore, not only unhelpful when used to compare loans of different durations, but is altogether unhelpful when calculating repayment rates for loans that have durations of less than 1 year, such as loans until payday.

Because it is an annual rate, when it is used to calculate the payment rate of loans that have durations of less than 1 year, the rate appears extremely high, when in fact pay day loans are not repaid over a year and are instead paid off on your next payday. As such, APR is a distorted measure of repayment when used for short-term loan products. It will be higher the shorter the loan duration and lower the longer the loan duration.

When looking at the repayment costs for short term payday loans, it’s more clear to consider the interest amount (in our case 25% of the loan value) and the total charge for credit (so £20 for every £80 borrowed with Payday Express payday loans). If you feel this is satisfactory, in the light of having a short-term need for credit and being able to access the needed funds instantly without having to enter into a long term credit agreement, then this is all that matters and the APR is irrelevant, since you won’t be borrowing the money for the period of a year or more.

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