Please note: High-cost short-term credit is unsuitable for sustained borrowing over long periods and would be expensive as a means of longer-term borrowing.
Fernovo, a trading name of Quidie Limited, claims to be the “faster, fairer, smarter” future of short-term and payday loans. With interest rates significantly less than the maximum allowed by the Financial Conduct Authority (FCA), Fernovo could prove cheaper than many of its competitors in this market.
Fernovo’s fancily-named “NOVOQuote decision engine” can give you a pre-approval decision in 60 seconds, and keeps your details anonymous so your credit rating is not affected. Once approved, you can expect the money to be in your bank account within 15 minutes. Additionally there are no hidden charges and Fernovo will not penalise you if you repay your loan early. Sounds promising, but is Fernovo really a different breed of short-term lender? Let’s take a closer look.
Compare Fernovo loans against other lenders
If you’ve used the Fernovo site to get a quote and want to see if you’re getting a good deal, find out how much a comparable loan is likely to cost you from some popular short-term lenders:
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What's in this review?
Key features of a Fernovo loan
- Borrow up to £1,000. Borrow up to £1,000 with a short-term loan or up to £400 with a payday loan (where you pay back the full amount in one lump sum on your next payday). Consider carefully which option will suit you best before you apply.
- Choose your repayment schedule. For instalment loans, the minimum duration is 2 months and the maximum is 6 months. For payday loans, the minimum is 5 days and the maximum is 38 days.
- Soft searching. Fernovo’s “NOVOQuote decision engine” provides you with a pre-approval response within 60 seconds. Your details are kept totally anonymous so the search will not affect your credit rating.
- Fixed, high interest rates. At significantly less than the maximum interest rate allowed by the Financial Conduct Authority, Fernovo’s rate is lower than many of its competitors. However, it is still high compared to mainstream financial institutions and this is realistically an expensive way to borrow money.
- “Smart Money” advice. Fernovo’s “Smart Money” web section has useful information about the loans market and how to sort your finances, as well as lots of money-saving tips and hacks.
- No hidden charges or late repayment fees. If you are late with a payment, Fernovo will not charge you a penalty. However, you will continue to pay the same rate of interest until you have paid off the loan, up to a maximum of 100% of the amount borrowed. Missing payments will also damage your credit record.
- Early repayment. You will not be penalised for repaying your loan early. This is recommended if you can afford to do so as you will only be charged interest for the number of days that you have had the loan.
How does a Fernovo loan work?
- Complete the simple application form by providing your personal, banking and employment details.
- Receive a pre-approval quote without affecting your credit rating.
- Once you click “Apply”, Fernovo uses the details you provided as well as information gained from credit reference agencies to automatically assess your creditworthiness and ability to pay back the loan.
- If you pass the automated checks, you will be sent some electronic documents with important information about your loan to read and e-sign.
- Once you have been approved, you can expect the money in your bank account within 15 minutes.
How do I pay back my loan?
Like most short-term loan providers, Fernovo uses a Continuous Payment Authority (CPA) to collect the repayments from your bank account on your chosen dates.
What is a Continuous Payment Authority (CPA)?
A CPA is a recurring payment in which you give a company permission to withdraw money from your account on a regular basis. CPAs differ from direct debits because they give the company being paid the ability to withdraw money from your account whenever they wish, and to take payments of different amounts without consulting you.
Most “payday” loan companies will use CPAs to collect your repayments, however you can cancel this at any point by either contacting your provider or your bank.
How much does a Fernovo loan cost?
The cost of your Fernovo loan will depend on factors like your loan size, rate and terms, as well as whether you take out an instalment loan or short-term loan.
Fernovo offer a special rate for returning customers, which is 10% below the cap rate.
Loan amount: £300
Loan term: 3 months (with monthly repayments)
Interest rate: 292% p.a.
Representative APR: 1244%
Total cost: £450.57
Pros and cons of Fernovo loans
- Discounted rate available
- Multiple repayment options
- Limited loan terms
Is Fernovo safe?
Fernovo is the trading name of Quidie Limited, which is a registered lender and also fully authorised and regulated by the FCA. While it is safe to take out a loan with Fernovo from a regulatory standpoint, these type of short-term loans can cause serious financial issues, especially if you fail to make your repayments on time.
What are the eligibility requirements?
You should only apply for a Fernovo loan if you are certain you can meet the repayment terms. You must also:
- Be 18 or over
- Be in regular full-time or part-time employment, or self-employed
- Live in the UK
- Be able to afford the repayments
Additional Borrowing Options
Fernovo does not allow you to top-up, extend or rollover your loan, or to take out multiple loans at the same time. If you get into difficulties with repayments, contact a Fernovo advisor as soon as possible, who will work with you to find a solution.
Did you know?In 2015 the Financial Conduct Authority (FCA) capped interest and fees on all high-cost short-term credit loans at 0.8% per day.
They additionally capped all default charges at £15 and the total cost (interest, fees) of loans at 100% of the original sum. This means you’ll never have to pay more than double the amount borrowed.
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