Every payday lender will have a different way of calculating the fees and interest rates associated with their payday loan. Before you decide on who to borrow from, you should do some research into this. It’s important to have a thorough understanding of how the interest rate is calculated on your loan, what and when you will be expected to repay and any other fees that may be associated with your loan.
Doing your homework will help you understand interest rates and fees that a potential lender will use. Good payday lenders will be upfront about the costs associated with your loan. Responsible lending means transparency - the lender should be very comfortable that you know and understand your repayment responsibilities.
At Nimble, the below highlights how we calculate fees and interest on your payday loan.
Nimble Small Loan [H3]
For our Small Loans of $2,000 or less, an APR (Annual Percentage Rate) doesn't apply. These loans are fee-based only, and so they don't have an APR. The establishment fee is 20% of the amount borrowed and the monthly fee is 4% of the amount borrowed. For example, a loan of $1,000 repaid over 3 months equates to a total amount payable of $1,320 comprised of $1,000 principal (amount borrowed), $200 establishment fee and $120 in monthly fees.
Nimble Medium Loan [H3]
For our Medium Loans between $2,050 and $5,000, the Annual Percentage Rate (APR) is 47.6158% (Comparison rate 65.6597% p.a.**) and there is a $400 Establishment Fee. A Medium Loan of $3,000 borrowed over 1 year would equate to a total amount payable of $4,289 (including a $400 establishment fee). This comparison rate is based on a Medium Loan of $2,500 for an amount over 2 years and a $400 establishment fee.
In addition to understanding how interest rate is calculated on your payday loan, it’s also a good idea to have a solid understanding of fee structure. The Nimble Fee Statement provides up to date and transparent information on how our fees work.
WARNING: This comparison rate applies only to the example or examples given and may not include all fees and charges. Different amounts and terms will result in different comparison rates. The comparison rate examples are legally prescribed and Nimble may not offer loans for these amounts and terms.