Pros and cons about satsuma loans
PROS AND CONS ABOUT SATSUMA LOANS
I don’t know about you, but I think online lenders are just as reliable as any other financial companies. They come in handy when there seem no one else is around to help you financially. These loans are your superhero in times of unexpected emergencies especially when your credit rating is not looking so good.
What’s great about online lenders is the convenience they provide to their consumers. You can apply from your home or office at any time. Mainly, you will need an Internet-connected device such as a laptop or smartphone to accomplish and submit your application.
Satsuma Loans have a very quick turnaround and processing time. Most online lenders are able to transfer the funds into the borrower’s personal bank account on the day the loan was approved, while some loan providers may do so the next day or the following week.
You can easily qualify for a loan with online lenders. A flawless credit history is not required to obtain a loan from an online loan provider. Despite having a blemished credit history, you will still get access to a variety of options. Lenders are more intent in finding out about your affordability by having a regular source of income which means you can afford to pay the loan.
Although online loans beat traditional loans in any other aspect, the drawback is that online loans have higher fees and costs compared to regular loans. That is why you need to check the fees and compare rates so that you can the best deal. There are also lenders who will provide the option to repay earlier than scheduled without extra fees. This can help save a significant amount on fees for the borrower. However, some may charge more interest rate if you settle your loan early.
Loan charges and rates will vary depending on the lender, so practice due diligence in comparing the prices offered by each lender. You may be tempted to immediately grab any loan offered by a lender, but checking and comparing rates will ensure that you can get a cheaper and more reasonable rate and total loan cost.
Online lenders are growing fast in the UK. Let’s check out one of the most prominent online lenders in the UK, which is Satsuma.
About the Company
Have you heard of Provident Personal Credit before? Satsuma Loans is a trading name of that is over 200-years old company. Launched by doorstep lender Provident Financial in 2013, Satsuma is an online-only lender that offers small, short-term loans.
Satsuma Loans is a newbie in the personal loans sector. But through its parent company, Provident PLC, they have been around for more than 200 years. They brand themselves as a friendlier option to regular payday loans, thus Satsuma offers loans that are more flexible. Satsuma is growing fast in the finance business with over £5 million of loans as of 2015, increasing from £1.8 million the previous year.
Satsuma Loans charges a typical APR of 991% as of March 2017, and its maximum interest rate is 1,575%. First-time customers can lend up to £1,000, which is payable over a 12-month period. It usually incurs an interest charge of £990 on a £1,000 loan.
Repayment plans for a Satsuma Loan are fixed and done weekly. You can forgo the monthly payments and opt instead for weekly repayments when you apply for a short-term Satsuma loan.
This company claims that there are no hidden fees or charges with their loans. Satsuma Loans does not charge some fees like fees for faster payments, arrangement fees and fees for missed or late payments.
If you get a loan approved for a Satsuma Loan, you can get the loan proceeds in just an hour as long the application process was completed 6 am and 11 pm. After choosing the weekly repayment schedule, Satsuma will come up with a Continuous Payment Authority to make sure repayments are made. If you have extra money, you can proceed with making additional or overpayments to help finish your loan earlier. For any concerns about the loan, you can contact Satsuma’s call centre hotline for help.
When you apply for a Satsuma loan, they will ask for a range of information from the borrower so that they can determine your affordability, ability to pay back as scheduled which helps them decide towards their final decision.
A borrower must provide his or her address or residence information for the past three years, his or her expenses on a monthly basis, and the borrower will also be required to agree to have his or her credit history checked. As long as a borrower has never declared bankruptcy, he or she can still apply for a Satsuma loan even though he or she was previously rejected by another lender.
Other basic requirements include your age that must be at last 18 years old and you must be a UK resident.
Many consumers are impressed and have appreciated Satsuma because of its features specifically because they do not charge fees. Yes, that is right. Satsuma loans do not have fees which, based on the standards of the payday loan industry, is very rare. All you have to settle is your monthly repayments that are basically a combination of the loan amount plus the applicable interest rate.
You should remember, however, that the APR and rates of Satsuma are higher than the APR and rates of other lenders. Based on the sentiment of consumers, Satsuma did not fare as highly on customer feedback since they do not offer statements, facilities for post-payout, as well as payment holidays.
Satsuma is one of the most expensive loans, with an extremely high-interest rate. If you’re planning on getting a Satsuma Loan, you should clearly understand the accompanying high costs. Ensure that you can pay for the loan by assessing your affordability so that you do not miss any scheduled payments.
Although there are many benefits from Satsuma Loan’s features especially the one that does not impose any fees for missed payments, it is better to make sure that you do not have any missed or late payments since it can reflect on one’s credit history. This can further hurt or damage your credit rating.
Unlike payday loans, Satsuma Loans repayments are installment. Payday loans are paid in a one-time lump sum, which can be a real pain. Imagine a huge portion of your paycheck will go directly to your loan. In most cases, this would result in more reapplication of your loan, leading you to a downward spiral debt trap. Fortunately, with Satsuma Loans, you can make a good monthly budget on your repayments and other basic expenses.
Loans offered by online lenders come with extremely high interest rates. This is why they are only intended for emergency expenses or as your last resort. Think it over whether you really need the loan or not.