Payday Loan Companies in the UK

The average payday loan is for around £300 for a first time applicant and the usual fee is £25 for every € 100 borrowed which is the equivilent of 25%. Although most payday loan companies show a high APR in the thousands, this measurement is NOT entirely acurate as an APR is an Anuual Percentage Rate.

Therefore, if one was to borrow £300 on the 1st of the month and they get paid on the 31st of the month, the term would 25% be 30 days, the interest would be 25% (or a high APR) and the interest would be £75

When a payday loan is due to settle, the client may choose to Defer the payment or Rollover the loan which means they pay just the interest on the loan and then the following month, they can pay back the Capital and the Interest on the loan, or they can choose to rollover the loan again.

These types of loans are probably popular because of the simplicity they offer in the ability to apply for them. You literally complete an online form and sign an electron contract sent to you via email and these payday loan comaponies can usually have the money in your bank account within a couple of hours. Some companies claim that they do not even carry out credit checks and are not bothered if you have CCJs.

A lender in the UK can also offer a sameday transfer of the loan guaranteeing to have the money in your bank account wihtin a couple of hours. Some state that the application must be made before 2pm so keep an eye out when applying.

There may seem like there is hundreds of payday lenders in the UK although there is only really a handful of them. Companies like Mr Lender, Cash Genie, Payday UK to name a few are actually Princiapals, whcih mean they lend the money. Other comapnies such as Payday Bank, Snap Payday are mearly payday loan broker and affiliate websites. These websites, take your applications and then pass them across to the lenders who offer them a commission for funding a loan.