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.
So, what other alternative options are you left with?
Loan amounts do not come without interest. Once you agree to the terms, you’ll be asked to pay a specific annual interest rate (APR) on the lump sum.
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? How is the APR calculated? What are payday APR rates?
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.
The calculation is fairly simple! The lump sum of money that you borrow is divided by the amount of interest to be paid and 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)
What one needs to understand before digging deep into the rates is that a payday loan can be beneficial for people already stuck in an unexpected situation.
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!