Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk

What is a direct loan?

A direct loan is agreed upon and set up directly between the lender and the borrower, and doesn’t involve a middle man like a broker.

How does a direct loan work?

Applying for a direct loan is straight-forward. You get in touch with a lender (such as Satsuma Loans) and tell them how much you’d like to borrow and for what length of time. They’ll then tell you the total you’d need to pay back – the loan amount and the interest.

Because it’s a direct loan, you know only the lender you apply to will assess your credit score to make sure you can pay the loan back, not the broker or any loan companies it may speak to.

Once you’re accepted, the lender can send the loan directly into your bank account. In some cases, you could receive the funds on the same day as application.

What are the benefits of a direct loan?

One of the main benefits of applying for a direct loan is you don’t need to pay any broker fees. A broker can be useful when searching for a large loan, such as a mortgage, as they can find the best deal, but for a smaller loan (up to around £1,000), the costs of a broker could outweigh the benefits of using one.

Additionally, applying for a direct loan is often quicker than applying through a third party. This is because when you deal directly with a lender you can find out instantly whether you’ve been accepted in principle, and they could be able to give you the funds within hours once they have approved your application.

Example of a direct loan

Use our loan calculator to find the loan amount you wish to borrow and the number of weeks you want to pay it back over. You’ll then find the amount you’ll need to pay weekly, the amount of interest due, and the final cost of the loan in total.

Borrow £nnn
Interest £914.90
Repay Weekly £73.65
Total to repay £1,914.90

Estimated repayment end date:

With us, you will only pay the amount agreed before you commit to the loan. There won’t be any hidden fees or unexpected extras waiting to surprise you.

As an example, let’s say you want to borrow £500, and would like to pay it back over 30 weeks. That would look like:



Weekly Repayments

Total to Repay






And that’s it!

Who is a direct loan suitable for?

Direct loans are suitable for a whole range of people with many different circumstances. Whatever your credit rating or experience applying for loans in the past, a direct loan could be cheaper than using a broker.

The only time a direct loan may not be suitable is when applying for a very large loan, like a mortgage. Whilst you can certainly apply for a mortgage directly, a broker can sometimes find offers and deals that wouldn’t be available if you applied without one. However, these deals are uncommon for smaller loans, so it’s likely you could save money by applying directly to a lender.

What happens after I apply for a direct loan?

Once you’ve submitted your application for your direct loan, you’ll find out if you’ve been approved, usually very shortly after applying. If you get the OK, the loan will be deposited directly into your bank account.

Representative example: £400 loan repayable over 26 weeks. 26 weekly payments of £29.46.  Rate of interest 183% p.a. fixed. Representative 1,575% APR. Total amount payable is £765.96.