Launched in 2009, Kabayan Finance offers loans of up to £1,000 either as a cash advance to be repaid in 20 to 40 days, or in instalments of 3, 6 or 12 months.
Kabayan is actively involved in the UK’s Filipino community, sponsoring cultural and community events and attending the major Barrio fiestas. The lender offers a bilingual service in English and Tagalog. This could be helpful for people who find it difficult to understand complicated loan conditions in a second language.
Key features of a Kabayan Finance loan
Borrow £300 to £1,000. The amount you are offered will depend on your circumstances and ability to repay the loan.
Choose how you repay your loan. You can opt for a “cash advance” if you can pay the money back after your next paycheck, within 40 days. Or you can choose to pay it back in instalments over 3, 6 or 12 months. The longer the term, the lower the interest rate you pay. However, interest is charged daily so the longer you have the loan for, the more you will pay in interest overall.
Fast payment. If you are approved, the money can be in your bank account within 2 hours. There is a one-off £5 fee for this Faster Payment Service.
Fixed, high interest rates. With high interest rates charged daily, this is an expensive way to borrow money.
Build your credit rating. If you repay your loan on time, it can improve your credit rating.
Late payment charges. If you miss a payment, Kabayan Finance will send you up to 2 reminder letters and charge you £2.50 each time. If a third letter is sent, this will incur a £10 late payment charge. Kabayan Finance will send up to 4 letters before further action is taken.
Early repayment. You can repay your loan in full or in part at any time without being penalised. This is a good idea if you can afford it, as it will save you money in interest.
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 Kabayan Finance’s loans compare against other lenders’?
Table: promoted deals, sorted by total payable
If you’ve used the Kabayan Finance calculator to get a quote and want to see if you’re getting a good deal, you can use the table below to find out how much a comparable loan is likely to cost you from some popular short-term lenders:
How much money do you need to borrow?
How long do you need to borrow over?
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 or “payday” loans offer a fast solution when you get into unexpected difficulties with your finances, but they are a very expensive method of borrowing. Therefore, you should only consider this option 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 people with serious debt problems.
Before you apply for a short-term loan, make sure you have considered all other options carefully. Is the expenditure that you’re planning unavoidable? If you can defer a purchase then you could save yourself money in the long run. If you are struggling to pay a bill, then try talking to your electricity, gas, phone or water provider to see if you can work out a payment plan. Read more about alternatives to payday loans at moneyadviceservice.org.uk.
How do I apply for a Kabayan Finance loan?
Consider if you want a cash advance loan repayable in 20 to 40 days, or an instalment loan repayable in 3, 6 or 12 monthly instalments.
Complete the simple online application form with your personal, employment and financial details.
Kabayan Finance will perform a credit check on you. It will then provide you with a decision on a loan and how much you could borrow.
Once accepted, you can have the money in your bank account within 2 hours. If the money is sent by this Faster Payment Service, there will be a one-off £5 charge.
How do I pay back my loan?
Like most short-term loan providers, Kabayan Finance 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.
CPA differs from direct debit 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 CPA to collect your repayments, however you can cancel this at any point by either consulting with your provider or your bank.
What are the eligibility requirements?
You should only apply for a Kabayan Finance loan if you are certain you can meet the repayment terms. You must also:
Be at least 21 years old.
Be in full-time employment.
Have a bank account with a valid debit card. This must be the bank account used for the loan to be paid into.
Have a net take-home salary of at least £1,000 per month paid directly into your bank account.
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
If you find yourself in financial difficulty, you must contact Kabayan Finance immediately. It may be able to make a payment arrangement, where you can repay what you owe over a longer time to avoid you going into default. Being in default may incur additional charges and harm your credit rating. In this case, Kabayan Finance would apply to court for a judgement directing you to pay the debt. If you still do not pay, the court may enforce the payment in a number of ways. These include making a direction for your employer to deduct instalments from your salary.
You will be charged £2.50 for each of the first 2 letters that are sent to you requesting the payment. If a third letter is sent, this will incur a £10 late payment charge. Kabayan Finance will send up to 4 letters. If you still cannot be contacted, the lender will review your circumstances and decide what action to take.
If you default and do not make acceptable arrangements to repay, Kabayan Finance may take steps to enforce repayment through a court. You may also have to pay the direct legal costs it incurs.
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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