Are doorstep loans affordable?
Not only do customers get a face-to-face service with a Provident doorstep loan, where they can make weekly payments to their Agent in cash, they get the loan at a competitive rate in comparison to other short term lenders.
How much does a Provident loan cost?
Just like all loans, with Provident you’ll pay interest. This means you pay more back than you originally took out – it’s what they call ‘the cost of borrowing’. That amount is calculated on how much you want to borrow, together with how long you borrow this for.
With us, it’s simple. We will only charge interest on the loan amount borrowed. The interest charge is fixed and we won’t charge for late payments, which means the amount your Agent said you’d pay when you applied for the loan is all you’ll ever pay back.
What is APR and why can it seem high with Provident?
For a further explanation of Annual Percentage Rate (APR) read this as a guide, but simply put it shows how much it would cost to borrow money for an entire year. The APR on our loans changes based on the amount you want and for how long. Even though some of our lending can be paid back in a few months, not a full year, we’re still required to show the APR as if we were charging interest for a year. That’s why it looks high sometimes.
However, you’ll only ever pay the same total amount you agreed with your Agent when you took it out.
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