Lender in Focus 5.5: Satsuma Loans FAQ

Satsuma Loans FAQ

Satsuma Loans FAQ

Satsuma Loans FAQ

Before you apply for a Satsuma loan, it is important to be equipped with information about the lender. This Satsuma Loans FAQ covers many of the most popular questions. It covers essential things to know about the lender, the loans and what it’s like to be a borrower.

Who is behind Satsuma loans?

Satsuma Loans is a trading name of Provident Personal Credit Ltd.

Provident is a well-known provider of loans, dating back to 1880.

Today, Provident continues to operate as a doorstep lender. Satsuma is the brand name for Provident’s online loans.

The registered office is:

1 Godwin Street
Bradford
BD1 2SU

Provident is registered with the Financial Conduct Authority. And can be found on the Financial Services Register using the reference number 002529.

What kind of loans do Satsuma loans offer?

Satsuma is a provider of short-term loans.

You can borrow anything from £100 to £1,000, subject to approval.

These are instalment loans, provided over terms of between 3 and 12 months. A longer repayment term helps you to spread the cost, with more manageable repayments but will keep you in debt for longer.

Longer loans terms also result in a larger total repayment.

If you borrow £100 from Satsuma over a 3-month term, then you might pay back £49.20 per month and £147.60 overall. However, the same loan over 12 months might mean a total repayment of £199.20. Over 12 months, the monthly repayments are a more manageable £16.60.

These instalment loans can also be repaid weekly.

What is the APR of a Satsuma loan?

Satsuma loans are provided at a representative APR of 991%.

This means that at least 51% of customers must achieve this APR or better.

How can I apply for a loan from Satsuma?

You can apply online for a Satsuma loan.

There is a loan calculator on the Satsuma website. You can use this to receive a rough estimate of your total repayment, and monthly or weekly instalments. The actual cost of your loan might be different. Interest rates are usually decided after your individual circumstances have been taken into account.

Once you know how much you would like to borrow, and how long you would like to borrow for, you can go through the online application.

You will need to provide some personal and financial details.

If your loan is approved, Satsuma claims that the money could be in your account within an hour.

Are there minimum requirements to meet?

To be eligible for a Satsuma loan, you must meet certain criteria.

You must:

·       Be between 18 and 74 years old.

·       Have a UK bank account and debit card.

·       Be a UK resident.

·       Not be bankrupt.

Whilst some providers of short term loans have a minimum income requirement, Satsuma does not publish one. This means that you can apply even on a low income but does not mean that you will be offered a loan that you cannot afford.

It is important to use a loan affordability calculator to select realistic loan terms.

Will Satsuma run a credit check?

A credit check is part of the decision-making process.

In order to be considered for a loan, you will need to give approval for your credit file to be accessed.

Satsuma is a responsible lender and will check your credit file for indications that you can afford to repay what you borrow. You may be approved for a loan, even if your score isn’t perfect.

Satsuma checks your credit file with Experian.

frequently asked questions of satsuma loans

Is Satsuma a trustworthy lender?

As a Provident brand, Satsuma is a trusted lender.

Provident loans have been provided for more than 130 years.

Other Provident brands include Vanquis Bank, well known for their credit cards.

Satsuma Loans was founded in 2013. The Satsuma website states that more than 90,000 loans are now issued annually.

The lender is authorised and regulated by the Financial Conduct Authority.

Loan reviews provided by customers are generally positive.

Satsuma uses Reviews.co.uk to collect feedback from its customers, with 83% of reviews having a 5* rating as of January 2017.

Most borrowers mention a straightforward, fast and easy borrowing experience.

Satsuma has a dedicated UK call centre.

How are loan repayments taken?

Your loan will be repaid using Continuous Payment Authority (CPA). This allows the lender to take money from your bank account, weekly or monthly, without asking for permission each time.

You have a right to withdraw Continuous Payment Authority, but will still be responsible for your debt.

If you wish to withdraw, you will need to contact Satsuma to make alternative arrangements.

Satsuma will agree all repayments with you before the loan is finalised. This means you will be given a list of repayment dates and amounts so that there are no surprises.

What happens if I cannot repay my loan?

If you are struggling to make repayments, it is important to act quickly.

You should first contact Satsuma, to make them aware of your difficulties.

Contacting the lender isn’t easy. But, they have a duty to help. They must act in a fair and responsible way.

Satsuma may be able to come to an informal agreement, to help you with your money problems. They might temporarily pause your repayments, or could stop further interest from being added to your debt.

Another possibility is that your weekly or monthly repayments could be reduced, with the debt spread over a longer loan term.

Lenders have no responsibility to reduce the amount that you owe or to stop interest from being added. But, they should help you to find a fair and reasonable solution.

If this is not enough, you may wish to contact a debt charity for free debt advice.

How do I contact Satsuma?

You can contact Satsuma by phone. Call 0800 694 0004.

You can also email. The email address is onlinecustomercare@satsuma-loans.co.uk.

Customer service representatives are available from Monday through until Saturday.