Rate Drop
Experience a new, fairer way to borrow. With our unique Rate Drop™ technology, your loan costs can decrease the longer you keep up with your repayments, with a representative APR of 39.9% (variable).
What is Rate Drop?
Rate Drop™ is our exclusive feature designed to reward reliable borrowers. Every customer starts with the same fixed interest rate, and when you make regular monthly repayments, your rate is lowered automatically.
The rate will be reduced when you meet the milestone of making six consecutive monthly payments in full and on time, without any defaults. How often this happens depends on the term of your loan for example, one reduction in 12 months and two in 24 months. This reduction happens as long as you keep up with on-time payments. We won’t increase the rate if you miss a payment.
How it works
The rate reduction is available for loans issued from June 2024 onwards when borrowers pay their loan payment on time.
If you miss a payment, pay less than the full amount due, or pay four or more working days late, it resets your progress towards the next Rate Drop Milestone. You will then need to start a new sequence of six consecutive monthly repayments in full and on time to qualify for a rate reduction.
If your loan started before June 2024, it is on our previous fixed rate of 49.9% APR. These loans do not include the Rate Drop feature.
For loans issued from June 2024 onwards, the Rate Drop feature applies:
- Everyone starts with the same fixed APR of 39.9%, no complicated tiers or hidden pricing
- After six consecutive on-time monthly payments, your rate reduces to 37.2% APR.
- After a further six consecutive on-time monthly payments, your rate reduces again to 34.5% APR (final rate reduction).
- On loans longer than 12 months, you will be eligible for two rate reductions.
- If you miss or are late with a payment, the 6-month countdown resets from the next on-time payment
- Once your rate has dropped, it never goes back up
Why choose Rate Drop?
- Borrow from £1,000 to £5,000 with clear monthly repayments
- Get a rate reduction when you pay on time
- We use a soft credit check to get you started, which won’t affect your credit score. A hard credit check will be carried out before your loan is finalised
- Repay monthly by Direct Debit or debit card, so you always know where you stand
- Repay early at any time, which may reduce the total interest you pay
- No hidden fees, with all costs clearly shown before you accept your loan. Late payment fees may apply if you miss a payment