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Should You Borrow From Satsuma Loans?

Updated on November 1, 2013

Provident have just launched a brand new online service. Satsuma loans are short terms loans that customers can apply for online. In this article we are going to take a close look at Satsuma loans, tell you about the interest rates, look at how much you can borrow and when you will be expected to pay the money back. If you are interested in a Satsuma loan but want to know what you are getting involved with, then this page will tell you all you need to know.

The company behind Satsuma loans are Provident Personal Credit. Provident are the UK’s biggest doorstep lenders and have been for over one hundred years! They have some serious history in the loans market and are a well known company. However, in today’s modern world of online payday loans, Provident are struggling to keep up with the competition, so they are launching their new product, Satsuma loans. This will run alongside there already popular doorstep loans and now customers will have a choice of personal doorstep service or an online service. So let’s have a look at what kind of loans Satsuma are offering.

Satsuma Loans - The Interest Rates

So the most important thing to consider when taking out any loans is how much you are going to pay back. With so many companies such as Wonga and Quickquid out there it’s hard to know which one to choose from. So what do Provident’s Satsuma loans have to offer? Well you can borrow between £100 and £300 as an initial loan. You have a choice of paying the money back either over 13 weeks or over 26 weeks. So how much interest would you end up paying back?

For a basic £100 loan over 13 weeks the total amount you will pay back is £140.01. So you are paying just over £40 interest. If you wanted to borrow £100 over 26 weeks then the total payable would be £167.97 so interest of almost £68. If you wanted to borrow more than that and you took the maximum initial loan of £300 over 13 weeks, you would pay back £420.03 so that is interest of £120.03.

Often people question the APR on loans and the reality is that Satsuma loans have a whopping APR rate of 1294.3%. However, APR can be very misleading on short term loans so although this figure is high it is not all that relevant in this case. So now you know how much it will cost you to take out a short term Satsuma loan, how does it work?

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Would You Consider Borrowing From Satsuma Loans?

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Not A Payday Lender

The man behind Provident’s Satsuma loans is Mark Stevens. He is the managing director of Provident and he has said that these new loans are the antidote to payday lending. So basically the service offered here is very different from what you see from Wonga and other companies. The biggest plus of Satsuma is that they will not charge you for late or missed payments. This is a massive plus as this is where companies who offer payday loans really take advantage of their customers. If you don’t pay your Wonga loan back on time then you can get in serious financial trouble with masses of extra interest and late fees being added. With Satsuma though you will never pay more than the initial agreed amount. This is how Provident has always done business and it is a formula that has worked for them for over 100 years.

Unlike most other online loan providers, with Satsuma you pay the money back on a weekly basis. For the basic £100 over 13 weeks you will pay back £10.77 a week. The money is taken from your debit card so it is easy to set up payments. You can choose which day of the week you want the payments to be taken. The money is deposited into your bank account as soon as you have been approved for the loan.

Another difference with this company is that they will ring you once you have applied online. They are trying to provide a more personal service and speaking to customers before giving them a loan is a way of finding out a little more about the customer and their specific needs. Plus they can also make a decision as to whether approving a loan is the right way to go.

Although the maximum initial borrow is £300, you can take out larger loans with the company if they are happy that you are meeting your current repayments. You basically build up a credit history with them and then they can offer you further credit if that is what you want.

Are Satsuma Right For You?

So now you know exactly what Satsuma loans has to offer, are they right for you? Well on first glance they may seem expensive, but overall they look to be offering a very attractive service. The fact that they do not add any extra charges if you get into financial trouble and miss payment is a massive plus. This takes the stress out of borrowing as you know you are only going to be paying back what you agree to in the first place.

As to whether Provident can compete with the massive payday lenders such as Wonga really remains to be seen, but there are certainly lots of plus points to this new way of borrowing. While doorstep lending still has it’s place in the loan market, it is true that online services are becoming more and more popular. Provident’s decision to enter the online market comes as no great surprise and with Satsuma loans they have a good chance of making it work.

If then you are looking for a short term loan with minimal fuss and less stress than payday loans then this could be the right service for you. The interest rates may seem a little high at first, but you are getting a good reliable service and you have that extra reassurance that you will only pay back what you originally agreed to.

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