During the application process, you\u2019ll sign a loan contract. The contract will summarize the loan details, including the due date. If you miss the deadline, you will pay a lateness fee. If you anticipate missing the deadline for whatever reason, it\u2019s wise to contact the lender and work out a new plan and rollover the payment. Doing so will save you the lateness fee, but you\u2019ll pay a cheaper rollover fee.<\/p>\n

On the flip side, if you can repay the loan before the deadline, that\u2019s great. If the \u00a350 loan has a variable interest rate, you will save on the loan costs. But if it\u2019s a fixed interest rate, the cost doesn\u2019t budge. In the case of variable interest rates, read the fine print to be sure the lender doesn\u2019t charge an early repayment fee.<\/p>\n

The early repayment fee is instituted to help the lender mitigate the \u2018lost\u2019 income. Since interest is charged daily, it means they do not earn loan interest on the remaining loan days.<\/p>\n

The cost of a \u00a350 loan<\/h2>\n

It\u2019s no secret that a \u00a350 loan from a lender will cost more than from a traditional bank. But before we get into the costs, there\u2019s a difference between the interest rate and the APR.<\/p>\n

The interest rate is the annual cost of the loan and is usually expressed in a percentage. APR is also the annual loan cost for the borrower but includes fees. It is also expressed as a percentage. So essentially, the APR gives a better picture of the cost of the loan.<\/p>\n

But what\u2019s the need of having two numbers? Well, the interest rate considers current loan rates and your credit score. Therefore, if your credit score is high, the interest rate will be lower. Also, monthly repayments are based on the principal amount and the interest rate and not the lender\u2019s APR.\u00a0 On the flip side, the APR is a figure set by the \u00a350 loan lender since it consists of lender fees and other fees.<\/p>\n

The cost of a \u00a350 quick loan varies from one lender to another. However, due to FCA limitations, it can only cost as high as \u00a312 a month (24%). But if you factor in additional fees like lateness fees the costs could be higher.<\/p>\n

Speaking of lateness fees, the FCA also has a preset limit of \u00a315 for all loans. The regulations exist to ensure you don\u2019t repay more than double the principal amount.<\/p>\n