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What does APR mean?

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APR stands for ‘Annual Percentage Rate’.

This is the cost of the credit as expressed as a yearly rate, based on our loan term which is 7 months.

Representative Example: Total amount of credit: £300 for 7 months. Total amount payable in one instalment: £488.79. Total charge for credit: £188.79 (interest only). Interest rate 107.9% pa (fixed). Equivalent to 8.99% per month. Maximum APR 107.9%APR. Maximum payment term up to 7 months. Pawnbroker loans are not designed to be long term loans.

This means that the APR rate for pawnbroker loans doesn’t necessarily give you an accurate figure for how much you might have to pay in interest. For example, an APR of 120% works out at 10% a month.

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What interest can I expect to pay on a pawnbroker loan?

As a general rule, the more you borrow the lower the interest rate overall.

The amount of actual interest you pay on a large loan compared to a smaller one will of course be higher because you borrowed more to begin with.

Here’s an illustrative example of how our interest might be applied to your loan:

Amount Borrowed Monthly Interest Rate
£0 - £5008.99%
£501 - £2,5007.99%
£2,501 - £5,000 7.50%
£5,001 - £7,5006.50%
£7,501 - £10,0005.50%
£10,001 - £15,0004.50%
£15,001 - £25,0004.00%
£25,001 - £50,0003.50%
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What does that mean in practice?

The amount of interest that will be charged on your loan is cumulative. This means that the previous month’s outstanding total will increase by the interest rate, not just the initial amount you borrowed. 

If you borrowed £100 at a 9.99 per cent interest rate, here’s how the interest would be calculated:

Month 1 £108.99
Month 2£117.98
Month 3£126.97
Month 4£135.96
Month 5£144.95
Month 6 £153.94
Month 7 £162.93

Your loan agreement

Your loan agreement will contain details of your loan. This will include the amount borrowed, when it is due to be repaid, and the interest rate that is being applied. 

Should you choose to reject the agreement your items will be returned to you. 

To Withdraw from the agreement, you must give notice within 14 days, and you will be required to repay the loan amount plus simple daily interest to cover the withdrawal period.   

Make sure you take your time to read through the loan agreement carefully, it’s there to protect both us and you from anything going wrong.

Representative Example: Total amount of credit: £200 for 7 months. Total amount payable in one instalment: £325.86. Total charge for credit: £125.86(Interest Only). Interest rate 107.9% pa(fixed). Maximum APR 107.9%APR. Maximum payment term up to 7 months