Satsuma is a short term loan provider; our loans are designed to meet a short term need for finance, possibly for an emergency or an unexpected bill.
What are short term loans?
A short-term loan is a sum of money borrowed from a lender that comes with a relatively short repayment term.
How short is short-term? Well, that depends on the lender, but most short-term loans fall somewhere between a few weeks and a year. The name makes sense when compared to longer-term loans, such as mortgages, vehicle financing and business loans, which can stretch across several years, often decades.
Short term loans vs Payday loans
The term ‘payday loan’, whilst still a short term loan, refers to money borrowed until the customers’ next wage comes in. These extremely short-term loans invariably come with corresponding high rates of interest and don’t allow customers to spread the cost of their loan with manageable instalments. Because our loans are paid back over periods starting from 3 months, Satsuma don’t offer payday loans. In fact we see our loans as the antidote to Payday Loans allowing the customer to decide a repayment period that suits them rather than the lender.
How do short term loans differ from other longer term loans?
Well, as we’ve discussed, the big factor here is time. The reason short-term loans can be usually be paid back quickly is that the borrowed amounts are relatively small. We’re talking the £100 - £1,000 you might need to pay for replacing an appliance or tackling an unexpectedly large bill, rather than the hefty sum required to buy a new car.
With lower loan values comes lower risk for the lender, which then translates into an simpler application process for the customer. The lengthy meetings and piles of paperwork you might associate with a big bank loan or mortgage are often replaced by short, no-nonsense online application forms.
That said, there are still risks for the lender. Because short-term loans rarely require any sort of backing or collateral, if a borrower fails to make their repayment, the lender takes the hit. As such, there are often fees and penalties attached to missed payments, and borrowers’ credit scores could be affected. However Satsuma Loans don't charge those additional fees which makes us a better choice. Instead we work with our customers to find a solution that works for them.
Why choose a Satsuma short term loan?
With so many short-term loan companies and products out there on the market, the amount of choice for customers can be baffling. It’s not just about the APR. If only it were as simple as comparing a single figure. Nope, it all comes down to the details.
Here at Satsuma, our short-term loans come with no hidden fees. Customers can borrow with confidence, safe in the knowledge that they only need to pay back what they agreed to pay back. This isn’t always true of other lenders.
Imagine being hit with a particularly costly month. Satsuma customers can call our friendly, Customer Care Team to discuss revising their payment schedule. Is this true of other short-term loan companies? Unfortunately, not always.
The Satsuma experience is different. We’re clear, honest and transparent. We put our customers in control and take the uncertainty out of short-term borrowing. We help people when others won’t.
Loans can be repaid either monthly or weekly over a period of 3 to 12 months depending on the loan term chosen at application. The maximum APR for a loan is 1575%.
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.