Our Rates
Loans come in handy when you’ve reached the end of the month, and have sudden expenses to match. Especially since asking for money from a close friend or family member may not always be an option. However understanding their APR rates is not as straight forward.
When this happens and you have no funds left in the bank, what other options are there?
Loan amounts do not come without interest. Whenever you make a cash loan, whether its £100 or £5,000, there will always be interest to pay on the loan.
Here at Pixie Loans, one of the UK’s best brokers, we endeavour to get the best rates for your loan.
But what is this interest rate? What are payday APR rates?
If you’re looking to apply for a short term loan, applying for a payday loan, let us answer these questions for you!
What is an APR?
The annual percentage rate is a specific amount that the borrower needs to pay on the loan amount, but it can vary under different circumstances.
At Pixie Loans, our lenders charge an APR that ranges between 45.3% to 1575%.
Remember, when acquiring a loan directly through a bank, you’ll be paying fixed payday APR rates. Unlike Pixie Loans, where we have many lenders on our panel that have varying APR percentages.
How is the APR rate calculated?
The calculation is fairly simple! To calculate the Annual Percentage Rise, the total amount lent by the lender is divided by the interest to be paid. It is then multiplied by 365.
Next, you divide that answer by the number of days in the repayment term. Finally, multiply that figure by 100 which will give you the percentage.
It’s important to realise that when you apply for a loan with Pixie Loans, we’ll be taking care of all the paperwork and calculation, saving you time and energy.
Because we understand that you just want a simple transaction, we won’t burden you by dropping heavy numbers on you. Most of the time the APR rate on a loan is fixed. However, some of our lenders may be flexible in their dealing and calculate the percentage concerning the circumstances under which you applied for it.
Representative 546.1% APR. Representative example: £200 repaid over 3 monthly instalments of £134.76. Total charge for credit £404.27. Interest £204.27. Interest rate 546.1% (fixed)
Will your bad credit score affect the payday APR rates?
This is not a relatively easy question to answer, as each lender we work with have their own unique rules. These rules vary on affordability, credit score, loan amount, repayment term, outstanding debts etc.
Pixie Loans is quick to process short-term loans like these. We then look to match you with the right lender who might devise an agreement that benefits borrowers like you.
Nonetheless, your credit score will have some effect on your loan application when it comes to calculating APR rates; our lenders try to be highly considerate of the situation. Once thing we can assure you as a borrower when you contact us for a loan is that we will go the extra mile to make the process smooth, easy, and less of a burden for you!
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