Lender in Focus 10.4: Sunny how repayments work and APR

Sunny APR

Sunny APR

If you want to compare the costs of borrowing with Sunny to the costs of borrowing with other financial lenders, the Sunny APR is a good place to start.

Before you take out any loan, it is important that you fully understand the costs involved, including whether there are any fees. Short-term lenders must always provide you with their representative APR. So that you can easily make comparisons with other loan providers.

To see what kind of deal consumers are getting, CashLady takes a closer look at the Sunny APR and finds out how the repayments work.

Payment schedule

Sunny offers credit options of between £100 and £2,500.

Your repayment term and your interest rate will depend on the amount you choose to borrow.

Loans of between £100 and £1,000 come with a fixed repayment term of 6 months.

If you choose to borrow between £1,100 and £1,500, your repayment term will be fixed at 7 months.

For those who want to borrow between £1,600 and £2,000, your loan term will be 9 months.

Finally, there is a fixed 14-month loan term for loans of between £2,100 and £2,500.

It is worth noting that even though the loan terms are fixed, you can repay your loan early at any time.

How are repayments taken?

Repayments are collected via Continuous Payment Authority (CPA).

CPA is a process by which a lender will automatically collect your repayments on your due date from your debit card.

When you apply for a Sunny loan, you will need to provide them with your debit card details.

You can cancel CPA at any time by either contacting Sunny or your bank. If you choose to cancel CPA, you will need to make your repayments in another way. Such as via bank transfer or through the payment feature in the ‘my account’ area. You should ensure that you make each payment on or before each due date.

Sunny will continue to send you payment reminders before each due date so that you can keep track of your payments.

How much will my repayments be?

Your repayment amount will depend on how much you borrow, your loan term and the interest rate of your loan.

You can see examples of how much you could expect to pay back, depending on how much you borrow and your loan term, using the calculator on Sunny’s homepage. Here, you can also see what your options are with regards to loan terms and amounts.

These examples are only representative examples and you may not be offered the rate of interest that you see in the example.

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

Sunny allows its customers to repay their loans early. As interest is charged daily, this means you could save money by repaying your loan early or increasing your repayments to pay your loan off sooner.

Can I change my repayment dates after I have taken out a loan with Sunny?

Sunny are not able to change the first payment or final payment dates.

Repayment dates can be changed for any payment in between. However, this could change the payment schedule and may reduce the number of payments you can make. Something which could increase the amount you will be paying monthly.

If you would like to repay your loan more quickly, you can log in to your online account to check your payment schedule options.

To reduce how much time it takes you to repay your loan, you could choose to pay more each month. This could save you money on interest.

Table of borrowing

The table below contains examples of what you could expect to pay back when borrowing from Sunny:

Loan amount6 months7 months9 months14 months
£250.00£440.05N/AN/AN/A
£1500.00N/A£2634.02N/AN/A
£2000.00N/AN/A£3620.97N/A
N/AN/AN/AN/A£4627.24

What is the Sunny APR?

What is it?

APR is the Annual Percentage Rate.

The Sunny APR is a good way to compare Sunny’s costs with those of other lenders.

Sunny’s representative APR is 1291%. However, not all customers who apply for a loan with Sunny will get this rate.

How does the Sunny APR compare to other lenders’ APR?

CashLady has chosen a few lenders at random so that you can make a comparison with the Sunny APR:

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.

Lending Stream

Lending Stream has a representative APR of 1325%.

For example: If you borrowed £200 over 6 months you would repay £383.68 in total.

MyJar

MyJar’s representative APR is 1081%.

For example: If you were to borrow £300 for 90 days, you would need to repay MyJar a total of £444.06. This would consist of interest totalling £144.06.

Sunny daily cap

The interest on Sunny loans is charged daily and is capped at 0.8% per day.

Total loan value repayment cap

Sunny is an FCA-authorised and regulated lender and therefore must follow these rules:

  • 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.

This means that you should never pay back more than 100% in interest and fees of the total amount you borrow from Sunny.

Also, it is worth noting that Sunny only charge their customers interest on the loan amount they borrow and do not charge fees.