Our loan offer will tell you how much interest you’ll need to repay and how much each repayment will be. We won’t charge you anything extra unless you miss a payment. If you do, we will apply a late payment fee to your account. We will never charge you more than £12 in late fees over the lifetime of your loan.
We charge interest by the day. This means if you pay us early you will pay less interest than if you repay your loan over the original term. Our APRs range from 69.9% to 99.9%.
When we set up your loan, we set up a payment schedule. This means your repayments will be the same each month.
Each payment includes two components: principal and interest.
Here’s a representative example of a 12-month loan with Drafty Loan. This is designed to help you understand all the costs and charges of borrowing money.
| Daily Interest Rate | Rep APR | Rep Example |
|---|---|---|
| 0.14770% | 69.9% | Given a Representative APR of 69.9%, if you borrow £1000 over 12 months at an annual interest rate of 53.9% (fixed), you would make 12 equal repayments of £109.34. In total, you would repay £1312.04. |
| 0.16400% | 79.9% | Given a Representative APR of 79.9%, if you borrow £1000 over 12 months at an annual interest rate of 59.9% (fixed), you would make 12 equal repayments of £112.61. In total, you would repay £1351.26. |
| 0.19426% | 99.9% | Given a Representative APR of 99.9%, if you borrow £1000 over 12 months at an annual interest rate of 70.9% (fixed), you would make 12 equal repayments of £118.29. In total, you would repay £1419.38. |
We don’t charge any fees to apply, to run your account or if you repay early. The only fee we will charge is if you don’t repay when you’ve agreed to (and not let us know there is a problem).
If you do miss a payment, we will apply a late payment fee to your account. We will never charge you more than £12 in late fees over the lifetime of your loan.
If you want to make sure you’re on top of your loan payments, log in to your account, where you can see your payment schedule.
Please think carefully about whether Drafty is the right solution for you. This is even more important if you're in financial difficulty. If we don't think you can afford to repay your credit, we won't be able to approve you. We'll look at your current finances and credit history before we decide whether to give you credit. Failure to repay could impact your credit file.