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.
Warning: Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk.
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.
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:
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.
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.
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
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.
You should only apply for a Fernovo loan if you are certain you can meet the repayment terms. You must also:
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.
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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