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.
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.
How do Fernovo’s loans compare against other lenders’?
Table: promoted deals, sorted by total payable
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:
How much do you need to borrow?
How long do you need to borrow for?
Important information: You should always refer to your loan agreement for exact repayment amounts as they may vary from our results.
We compare payday/short-term loans from
Is high-cost, short-term borrowing a good idea?
Short-term/payday loans offer a fast fix when you get into difficulty with your finances, but are a very expensive method of borrowing. You should only consider this as a last resort. These loans are unlikely to solve your money problems in the long term, and are not suitable for borrowing over longer periods, or for sustained borrowing. Make sure you’e considered other options carefully, and that the expenditure that you’re planning is truly essential and urgent. Read more about alternatives to payday loans at moneyadviceservice.org.uk website.
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.
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.
Frequently Asked Questions
A poor credit rating will not necessarily mean you are turned down for a loan with Fernovo. Fernovo will want to make sure you can afford to pay back the loan however. Fernovo considers a variety of affordability factors when making a lending decision such as income, expenditures and recent credit behaviour alongside your credit score.
You can speak with an advisor to help you understand the application form. However, you cannot complete the form over the phone.
When you apply for a loan, Fernovo will check your credit history using the NOVOQuote check. This is only a quote check and it will not show on your credit records unless you are actually granted a loan.
It is a possibility. Fernovo’s systems automatically check the information available online before the e-sign stage. From time to time, its underwriters might need to complete a full assessment of your credit worthiness and affordability.
Chris Lilly is a publisher at finder.com. He's a specialist in credit-based products including business and personal loans, mortgages and credit cards, and is passionate about helping UK consumers make informed decisions about their borrowing. In his spare time Chris likes forcing his kids to exercise more.
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