Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk


APR is the abbreviated term for Annual Percentage Rate and it varies between financial products and services. The payday and short term loans industry has quite high APR compared with other financial products such as a bank loan or credit card. This is due to the much shorter duration of payday and short-term loans and with some lenders charging upwards of £6,000 which can really distort the end figure and confuse consumers on the real cost of loans.

Payday and short term loans calculate APR at an annual interest rate but then have to multiply it over a few week’s duration as opposed to more traditional lending methods.

Why is APR used for payday loans?

APR is used on all kinds of financial products and services as the key method for interest. As a general rule it is designed for long term products such as loans or mortgages which have annual interest rates.

APR is used within the payday loans industry as it is the most simple and effective method for comparing products and clearly knowing the repayable amount. The Financial Conduct Authority have issued specific guidance for the advertisement of payday loans. The ultimate aim of this was to ensure that all pricing was clearly displayed for consumers helping them to make an informed choice across all the financial products and services on the market today.

What is the real cost of a payday loan?

There are other factors to consider when assessing the true cost of a payday loan as the APR is just one indicator. The daily interest cost that lenders charge is the clearest indicator. The Loan Ranger is committed to providing a fair and responsible lending service. As such all applicants are subject to credit and affordability checks to ensure loan suitability.

We operate a policy of transparency to our customers and have no hidden charges or fees. Our instalment loans are repayable over the course of three months in equal monthly instalments. A typical three month loan has an APR of 1265% which is much less than an average payday loan. In line with the FC A’s guidelines, our instalment loans have a daily interest rate of 0.80% and charge £24.33 borrowed each month. Unlike most lenders, the Loan Ranger does not charge an early repayment fee.

The Loan Ranger Application Process

New customers of the Loan Ranger can borrow up to £300 and existing customers may borrow up to £1,000. The Loan Ranger makes it easy to repay with instalments covering three equal months. The application process is 100% online and takes under 5 minutes to complete.

In accordance with the FCA and our status as a fair and responsible lender, all applicants are subject to basic credit and affordability checks to ensure you are suitable for a loan. As part of the process we require details of your income and employment as well as other details which will be requested from you. The checks and tests are intended to protect the interests of all parties involved and to deter consumers getting into unnecessary cycles of debt. For more information on debt and money advice, please visit https://www.moneyadviceservice.org.uk