The APR seems very high, why?

We have to quote the APR and this may seem high but it's not the true case, this is the figure for lending for the year which is not what we provide, our typical faxless payday loans are usually for around 30 days. We have to quote the APR even though this is not a true reflection of the charges involved. The APR displayed when you apply is based on an annual or yearly figure, all you pay is £25 for every £100 you borrow.

APR's are an ideal way to compare other products similar to ours but are not clear when comparing different products to ours. See the chart below for details on this.

 

 

You can clearly see the APR for the 2 installment loans are the same as each other but actual interest amount repaid as a percent of the loans is very different and a lot less with our payday loans.

Also you could compare payday loans against other things such as unauthorized over drafts with your bank account. Banks don't have to display their APR figure for their charges when you go overdrawn and your not allowed to. The chart below shows how the APR is done even if you go overdrawn by just £5 and for doing so you get charged £25.