Lender in Focus 5.4: Satsuma Loans APR

Satsuma Loans APR

Satsuma Loans APR

Satsuma Loans APR can be a useful thing to look at when a comparison is needed with other short-term lenders.

When you are thinking about taking out a loan, it is important to understand what the APR will be but also how the repayments of your loan will work.

CashLady takes a closer look at the Satsuma Loans APR and their repayment schedule, to see what kind of deal its customers are getting.

Payment schedule

When you apply for short term loans with Satsuma Loans, you will be asked to choose your repayment schedule.

Weekly

You can choose to make your loan repayments weekly with Satsuma Loans. The minimum loan term they offer is 13 weeks. If you opted for a 13-week term, you would repay the amount you borrowed, plus accrued interest, over 13 equal weekly payments. The maximum loan term is 52 weeks.

As part of the application process, you are able to select the day of the week that you would like to make your repayments on.

Monthly

A monthly repayment schedule is also possible with Satsuma Loans. In this case, you will repay your loan on or just after your payday each month.

For monthly repayments, you can opt for a loan term of between 3 and 12 months.

If you do not have a monthly income, you may find weekly repayments could be easier to manage.

You are also able to make extra repayments, for both weekly and monthly loans, through the Satsuma Loans UK based Customer Care Team.

How are repayments taken?

Satsuma Loans will take loan repayments through Continuous Payment Authority (CPA). This is regardless of which payment structure you choose.

CPA is a way of repaying your loan by giving a short-term lender permission to collect the repayments from your debit card. After you have given this permission, all repayments will happen automatically. And, you will not need to do anything further to repay your loan.

If your bank declines the repayment request from Satsuma Loans because you do not have enough funds, there are no charges.

You will need to give Satsuma Loans permission to collect your repayments this way when you apply for a loan. Satsuma Loans should tell you exactly how much you can expect the repayments to be beforehand. As well as, the dates/days of collection, so that you are able to budget.

How much will my repayments be?

You will be told how much your repayments should be when you apply for your loan. Repayments vary depending on how much you borrow, the interest rate and the term of your loan. The maximum Satsuma Loans APR is 1575%.

Will I be charged less if I repay my loan early?

You are able to repay your loan early with Satsuma Loans. If you choose to do this, you may be entitled to a rebate.

When you inform Satsuma Loans that you want to pay back your loan earlier than planned, they will give you a settlement quote. Valid for 28 days, it will inform you of how much you need to pay in total. The amount you will need to pay Satsuma Loans to settle your account will include the interest calculated to cover the 28 day quote validity period. The full amount of this quote will be payable, even if you repay your loan straight away.

Can I change my repayment date after I have taken out a loan with Satsuma Loans?

Changing your repayments day/date is possible, by calling 0800 694 0004.

Table of borrowing

This table contains examples of what you could expect to pay back with Satsuma Loans: 

Satsuma loans table of borrowing

What is Satsuma Loans APR?

APR is short for Annual Percentage Rate.

APR can be used to compare the Satsuma Loans APR with that of other lenders.

Satsuma Loans representative APR is 991%. Not everybody who applies for a loan with any short term loan provider will get this representative APR. At least 51% of people who are accepted for a loan must get this representative rate.

The maximum Satsuma Loans APR is 1575%.

How does Satsuma Loans APR compare to other lenders APR? 

CashLady has randomly selected other short-term lenders to compare the Satsuma Loans APR too.

WageDay Advance

WageDay Advance has a representative APR of 1294.1%.

For example: If you borrowed £200 for 28 days with WageDay Advance, you could expect to repay £244.80 in total, of which £44.80 would be interest.

Sunny

Sunny has a representative APR of 1291%.

For example: If you took out a loan of £250 for 6 months, you could expect to repay £440.05 in total.

Quickquid

QuickQuid’s representative APR is 1295%.

For example: If you borrowed £200 for 84 days, you could expect to repay a total of £334.40, including interest of £134.40.

Satsuma Loans daily cap

FCA rules that have been in force since January 2015, mean the daily interest rate charged by any short term lender cannot be more than 0.8% per day of the amount borrowed.

Total loan value repayment cap

Satsuma Loans is FCA-authorised and regulated. This means that:

•   Fees and interest per day must not exceed 0.8% of the amount borrowed

•   Default fees must not exceed £15, although interest can still be charged after default (but only at or below the initial rate)

•   Borrowers will never pay more in interest and fees than 100% of the total amount they borrowed.

However, Satsuma Loans has never charged late or missed payment fees.

This means you should never pay more than the amount you agreed to pay upfront with Satsuma Loans. That is, even if you miss a repayment or are late making a repayment.