Interest is fixed at 1.25% per month and calculated on a simple basis, i.e. there is no compounding of interest.
We take the annual interest rate of 15% (1.25% per month), multiply by the amount of the facility you have drawn down and divide by the number of days that the money has been drawn down for.
For example, if you have drawn down £10,000 for 6 months, you will pay back interest on the £10,000 of £774. You will receive a statement at least once every 12 months, so you know exactly what you owe as your case progresses.
- Total amount of credit: £100,000
- Total charge for credit: £27,680, includes:
- £5,150 insurance
- £75 administration fee
- Interest £22,455 (full facility draw down month 1)
- Rate of interest 15% per annum (fixed)
- Duration 18 months
- Total amount payable £127,680
- Representative APR 18.5%