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

What is an APR?

Every bank and lender is required to show an APR, to try and help consumers compare the cost of credit. But what does it mean? It stands for Annual Percentage Rate which is calculated using a standard formula that assumes all credit is repaid over a year. An APR includes any fees that are applied at the start of the loan; however it excludes any additional fees that the lender might apply later, for example, if you miss a payment.

APR is useful when comparing loans of the same term over a year, however can be misleading when applied to short term loans like ours.

As well as comparing the cost of credit, another important thing to consider if you are thinking of taking out a loan is whether the repayment amounts are affordable to you; our loan calculator can help you do this by showing you what the repayments would be for your loan.

How does APR work for Satsuma Loans?

Our APR varies based on how long you want to take to repay your loan and all our terms are 1 year or less.

As our loans are repaid over 1 year or less, our APR can look really high compared to other financial products. This is because ours is still worked out assuming all our loans will be paid back over a year.

Satsuma Loans promise that:

  • We never charge you any extra fees or charges
  • We will never change the rate of interest throughout your loan
  • We will only ever ask you to pay back what you originally agreed


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.