Borrowing money guide - our interest rates
A closer look at our interest rates and APR
Like all other lenders, we charge interest on all our loans. When you're considering a loan, interest rates are something to be aware of, but they can often seem intimidating and confusing.
By giving you all the information we can about the interest we charge, we aim to help you to make an informed decision when you borrow from us.
What interest do we charge?
Morses Club has a fixed interest rate of 50% on a 20 week loan, 65% on a 33 week loan and 82% on a 52 week loan. This means that depending on your loan term and the repayments you make, you will pay back 50-82% of the amount you borrow in interest. This might be higher than some other forms of credit, but there are several reasons for this. Our loan amounts start small, which is an option not available to you with some other lenders. We also offer small weekly repayments rather than lump sump repayments, so you can plan around them. Additionally, our agents provide you with a personal, friendly service, and you won't be charged a penny for paying your loan off early.
What is a fixed interest rate?
We offer a fixed interest rate, which means you will never pay more on your loan than you agree to initially. With some payday lenders, you accrue interest on each day you have your loan as well as each day your repayment is overdue - plus any additional charges. This can make it difficult to get a handle on how much you actually owe. With a cash loan from Morses Club you don't have to worry about this as the interest will be calculated up front. This means you'll be aware from the beginning how much you will pay back.
What is APR?
APR stands for Annual Percentage Rate and works out what percentage of interest you would pay on your loan over a year. This is calculated by looking at various factors including the interest rate, how often you make repayments and any charges associated with the loan. Lenders are required by law to display their APR to allow people to effectively compare loan products. Our APRs at Morses Club are as follows:
- 20 week loan: representative 756.5% APR
- 33 week loan: representative 433.5% APR
- 52 week loan: representative 272.5% APR
Once you have agreed to your loan and how long you will have it for, the APR remains the same whether you pay back your loan in 2 weeks or 10 months. However, the interest which is used to help calculate the APR is only applicable for the time you take out your loan - so if your loan term is 6 months, you will only pay interest for 6 months. APR is a good way of comparing loans which are like for like. All loans need to be suited to the individual, so as well as looking at APR you need to be aware of what your loan term will be and extra fees and charges when making a decision. At Morses Club we clearly display our APRs in order to be honest and transparent with our customers. Our agents and customer service team are there to answer any questions you may have about our APR or Interest.