A fresh alternative to Payday Loans
Why should you be looking for an alternative to payday loans?
Whether it’s an emergency expense such as a car repair, an urgent bill or even an unexpected school trip for the little ones, many people have found themselves short of cash at one time or another. Quite often in these situations people have considered taking out a payday loan. However, following a great deal of negative press coverage over the last few years, borrowers are becoming increasingly interested in finding a viable alternative to payday loans.
Here we talk about how Satsuma loans can provide a practical alternative to payday loans that you may find a lot more suitable.
What is a payday loan?
Payday loans are short term loans that are repaid in a single, lump sum instalment, normally within 30 days of taking out the loan, i.e. upon your next “payday”. A payday loan can work if you know for certain that you will have the money available on the due date to repay the loan in full, without leaving yourself short of cash again the next month. However, many people have found out to their cost that when they reached the time to repay, their circumstances had changed and they just couldn’t manage a lump sum payment.
At Satsuma Loans we realise that those lump sum repayments can be very difficult to manage for people whose finances are stretched. Many of us work to a tight budget just to cover all the essential expenses we have to pay every day, week and month. So for example, if you haven’t got £500 spare initially, then it’s unlikely you’re going to have it all in a months’ time. Plus, with some payday loans, if you don’t meet the deadline to repay you will be charged added interest and could be charged additional fees of up to £15 as well. Previously payday loan companies could have charged a lot more - and most did!
In January 2015 our regulator, the FCA, introduced price caps on the charges that loan companies offering high cost short term credit loans could charge. The new rules mean that the daily rate of interest charged must not exceed 0.8% per day, default charges cannot exceed £15 and there is a total cost cap of 100% of the amount borrowed1. Put simply - borrowers must never have to pay back more in charges and interest than the amount that they borrowed.
Here at Satsuma we’re proud to say that we have never charged late or missed payment fees!
What are the alternatives?
There are other options. If they can spare it, you could borrow from family members or friends. You could ask your Bank for a short term overdraft or even apply for a Bank or Building Society loan, but this can be a lengthy process and many may find that they aren't eligible.
How do we do it?
As a first time customer with Satsuma you could borrow up to £1,000 and repay it over 3-12 months in manageable monthly or weekly instalments. Click here to see our loan calculator.
We’ll tell you the total cost of your loan up front with no catches or hidden charges. You will never owe a penny more than you agree upfront, even if you’re late with a repayment or miss one.
If approved via our online application process, we transfer the money to your account via Faster Payments, normally landing in your account within the hour if you’re accepted between 6am and 11pm, which is really useful if you need the money for something urgent.
Repaying your short term loan is just as easy too! We collect repayments by Continuous Payment Authority, or CPA. You choose a convenient day of the month or week and we simply collect your contractual repayments from your debit card automatically. If we’re unable to collect your repayment we’ll always get in touch; we certainly won’t try and collect the repayment again without speaking to you or try to collect more than your contractual repayment.
We understand that your personal circumstances can change, for example, by an unexpected drop in income. Our friendly team are only a phone call away, so if you’re struggling to pay on time, let us know. We want to talk to you and help you get back on track because, unlike some other companies, we’re not totally automated and faceless. The help and support we offer is provided by real people in our UK based call centre. We love to talk to our customers, get to know them and help them achieve a positive outcome.
And remember – unlike many other lenders, we’ll never charge you a penny more than you agree upfront, even if you miss or are late with a payment. Satsuma Loans really are a great alternative to payday loans.
Why Satsuma Loans?
Many of the companies that provide short term loans haven’t been around for as long as most banks, building societies and other more established lenders. We are quite the opposite.Satsuma Loans is part of Provident Personal Credit, a Bradford based company that has been lending a helping hand since 1880!
That’s 135 years’ worth of experience and decades of trust built up with our customers.
That’s not just our view, our customers love us! We have started 2016 with an amazing 98% approval rating on Feefo, with lots of great customer feedback achieved over the course of 2015 (Feefo January 2016). Click here to check out our reviews.
We are confident that we are a much better alternative to payday loans and our customers have told us the same, but if you’re still unsure, feel free to give our UK based customer care team a call on 0800 694 0004 and we’ll answer any questions you have.
Satsuma Loans – a genuine alternative to payday loans!
Representative example: £400 loan repayable over 6 months. 6 monthly payments of £126.40. Rate of interest 179% p.a. fixed. Representative 991% APR. Total amount payable is £758.40.