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 Satsuma loans compare against other lenders’?
We compare payday/short-term loans from
What's in this guide?
- How do Satsuma loans compare against other lenders’?
- Satsuma loans at a glance
- How does a Satsuma short term loan work?
- Satsuma short-term loan costs
- Pros and cons of Satsuma loans
- How long does it take to get a Satsuma loan?
- How do I apply for a loan from Satsuma?
- Are Satsuma loans safe?
- Am I eligible?
- Can I make changes to my loan?
- The bottom line
- Frequently asked questions
Satsuma loans at a glance
Satsuma is a part of Provident Personal Credit Limited, which has over 135 years’ experience in lending a helping hand to customers.
The company aims to be a fresh alternative for those looking for a short term loan and claims to have issued over 280,000 loans so far. 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 you won’t pay an any additional or hidden fees on top of this amount. You can also get in contact via its UK Customer Care team.
|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|
How does a Satsuma short term loan 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.
Satsuma short-term loan costs
The cost of your loan will depend on how much you borrow, your loan terms and repayment schedule. Satsuma short-term loans have a representative APR of 535%, with a maximum APR of 1,575%.
You will be given the full cost of the loan upfront, and will no pay any additional or hidden fees over this amount.
Loan amount: £480
Loan term: 9 months (with monthly repayments)
Representative APR: 535%
Total cost: £959.04
Pros and cons of Satsuma loans
- No hidden fees
- Fast approval and funding
- Can check eligibility before applying
- High rates
- Limited loan terms
How long does it take to get a Satsuma loan?
When applying for a loan, you’ll need to provide:
- A valid phone number and email address
- Home addresses for last three years
- Your regular income and expenses
- Bank account and card details
How do I apply for a loan from Satsuma?
- Before you apply for a Satsuma loan, make sure you have worked out how much you need to borrow, and have compared a number of loan options to find the one that’s best for you.
- Once you’re ready to apply, you can go to the Satsuma website and check your eligibility using the Satsuma SmartCheck calculator.
- You’ll need to enter your personal and financial details and will then find out if you’re eligible for a Satsuma loan.
- If you’re eligible, you can then apply for a loan. You’ll need to choose your loan amount, loan term and repayment schedule. You’ should then receive near-instant approval.
- Once your loan is approved, accept your loan agreement.
- Wait for the funds to reach your account.
Are Satsuma loans safe?
Satsuma is a trading name of Provident Personal Credit Limited, and is authorised and regulated by the FCA. Your personal data is also protected under the GDPR.
However, while it is safe to apply for a Satsuma loan from a security perspective, this type of high-cost short-term loan can lead to serious financial difficulty, especially if you fail to make your loan repayments on time.
Am I eligible?
You should only apply for a Satsuma loan if you’re certain you will be able to make the repayments. You’ll also need to meet the following criteria to be eligible for a Satsuma short-term loan:
|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.
Can I make changes to 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.
The bottom line
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
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