We charge 29% interest on top of the amount borrowed for our
payday loan service to get you your month end money.
So, if you borrowed £100 you would need to repay £129 on your pay day.
There are no hidden charges with Payday Express – interest on your
payday advance is always 29% 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:
| You Borrow |
You Repay |
| £80 | £103.20 |
| £100 | £129 |
| £200 | £258 |
| £300 | £387 |
| £400 | £516 |
| £500 | £645 |
| £600 | £774 |
| £700 | £903 |
| £800 | £1,032 |
Representative Example
If you borrowed £200 for 28 days you would repay a single payment of £258, with an interest rate of 378% variable per annum. 2670.8% APR representative.
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 29% of
the loan value) and the total charge for credit (so £29 for every £100 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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