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.
Satsuma loans review 2020
Satsuma offers short-term loans with repayment periods from 3 months up to 12 months, that you can pay back monthly or weekly - the choice is yours.
Satsuma is a part of Provident Personal Credit Limited, which has over 135 years’ experience in lending a helping hand to customers. The company claims to have issued over 280,000 loans so far.
How do Satsuma loans compare against other lenders’?
We compare payday/short-term loans from
Satsuma loans at a glance
Satsuma Loans aims to be a fresh alternative for those looking for a short term loan. Unlike traditional “payday” lending, where you’d borrow over a very short period of time and make a single repayment on your payday, with a Satsuma loan, borrowers make a repayment each month, or each week. You’ll normally want to align this with how often you get paid. Each instalment pays off part of the capital (the original amount borrowed) as well as the interest accrued so far.
New customers can borrow up to £1,000 and pay back in manageable segments over terms from 3 months to 12 months. This spreads the cost of repayment into manageable chunks, potentially taking the pressure off finances. However, it’s worth remembering that, broadly speaking, if you borrow for longer periods, you’ll pay more interest overall. Satsuma is transparent about the full cost of the loan upfront, and has a friendly UK Customer Care team on hand.
|Product Name||Satsuma Short Term Loan|
|Available Amounts||£100 to £1,000|
|New customer maximum||£1,000|
|Loan terms||3 months to 12 months|
|Soft search eligibility check|
|Instant decision in most cases|
|Funding speed||Satsuma aims to transfer funds within one hour if it’s between 6am and 11pm. If your application’s approved outside this time, funds are transferred the following morning.|
|Repayment period options||Monthly|
|Default repayment method||Continuous payment authority|
|Additional repayment methods||Online payment|
|Repay early at any point|
|Parent company||Provident Personal Credit Limited|
|FCA registration number||700144|
|Go to site|
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.
How does a short term loan from Satsuma work?
First of all you’ll need to decide how much you’d like to borrow and for how long. Satsuma’s online calculator will then inform you of your monthly/weekly repayment, and the total cost of your loan. You can also use the SmartCheck to see if you’ll be approved before you actually apply.
Next you’ll need to provide some personal, work and finance details. Some applicants may receive a quick call to confirm details and check if they are eligible for a loan. If accepted, Satsuma will use a Continuous Payment Authority (CPA) to automatically take your repayment in instalments on your agreed weekly or monthly dates.
Loans can be paid back over a periods from 3 months to 12 months, or if you have the funds you can pay back your loan early. Doing so will save you money on interest. Unlike most other providers Satsuma do not charge extra if customers miss their pay date. However, this can have big impact on your credit score, so should be avoided at all costs.
Am I eligible?
You should only apply for a Satsuma loan if you’re certain you will be able to make the repayments. You should also consider the following criteria:
|Min. income||£250 per week|
|Applications from self-employed considered|
|Additional eligibility notes||You must not be bankrupt. |
You must hold a UK bank or building society account with a valid debit card.
You must have a working mobile phone & email address.
|Go to site|
How do I apply for a loan from Satsuma?
- Decide on the size and length of your loan.
- Spend a few minutes completing an online application form.
- Wait to see if you have been accepted, this should be pretty instant.
- Accept the agreement.
- Your loan should arrive in your current account within the hour, and can be as quick as 5 minutes.
Help! I want to modify my loan
Need to borrow more? Want to clear your loan early? Satsuma is pretty flexible. If you want to repay your loan early, Satsuma lets you do so at any time. However, unlike some other short term lenders, Satsuma gives you an “early repayment figure“, which is valid 28 days. If you pay that sum on day one, you’ve still been charged interest for the full 28 days.
|Option to change repayment date|
|Repay early at any point|
|Repaying early can reduce overall interest|
|Interest is only applied to days where funds are outstanding|
|Multiple loans allowed at the same time|
|Phone number||0800 694 0004|
|Go to site|
If you’re struggling to pay, contact Satsuma at the number above before any repayments go overdue. In this way you can protect your credit score and work with Satsuma to find a solution.
Is high-cost, short-term borrowing a good idea?
Satsuma and similar high-cost, short-term credit providers offer a super-convenient but eye-wateringly expensive method of borrowing. Because of this, it should only really be considered as a last resort. It’s not a good idea for borrowing over longer periods, or for sustained borrowing, and don’t expect it to solve your money problems.
Before applying for an expensive loan, consider your options. Is the expenditure that you’re planning absolutely essential? If you can defer a purchase then you could save yourself money in the long run. If you’re struggling to pay a bill, then why not talk 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.
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