Can you explain the APR?
neil (1 year ago)
i have done some maths and the apr doesnt add up, can you explain it please, for a 3k loan at 24 months its 171pm = 4248 paid back, for a 3k loan at 36 months its 137pm = 4932, i seem to be being hit very hard for taking another 12 months to pay my loan, keeping payments down but 700 pounds more paid back in 12months!!!! this isnt right surely
FLM Loans (8 mths ago)
With an FLM Loan, interest is charged daily on the balance outstanding. That way you only ever pay interest for the number of days that you borrow from us, and you can pay off your FLM loan at any time without any extra payment.
At the beginning of the loan you pay interest on the full amount you borrowed from FLM, for example if you owe £3000 you might be charged interest of roughly £3 a day, which (for example would be around £90) of interest for the month, the rest (for example £45) would come off the loan. Later on, when your balance has come down to £1000 you would pay less interest each month (for example £30) and the rest for (for example £105) would come off your balance.
Remember, your interest rate is calculated depending on how much you borrow and for how long you borrow it for.
Comments (6)
FLM Loans (12 mths ago)
If the interest increased or decreased there is only a slight chance it would affect you if your loan was already paid out, it would only affect new customers. However in the unlikely event that it did change, we would always let you know before hand.
kim.o. (10 mths ago)
My intrest rate charges changed and i wasnt notified.
Also if i reborrow i have to pay back more each month and that as put me off to top-up my loan.
FLM Loans (10 mths ago)
Hi kim.o.,
Please note that your interest rate does not change once your loan is paid out. If there is any change that were to take place, we would let you know 4 weeks in advance. Interest is charged daily on the balance outstanding. You may notice that the amount of interest added each month varies, this is normally due to the number of days in each month going up and down and your outstanding balance changing each month.
Remember, your interest rate is calculated depending on how much you borrow and for how long you borrow it for. Iif you top up your loan, you will be borrowing more from us. Therefore, your monthly repayment will be higher in order to pay your loan off on time.
Hope this helps.
Thanks.
muham_khan (9 mths ago)
if i am providing a guarantor then why is the interest rate so high? can this be lowered? and can you have a fixed rate rather than variable?
FLM Loans (9 mths ago)
FLM guarantor loans are the cheapest loans in the guarantor loan market. We only offer guarantor loans, and this does not affect the APR or interest.
Every FLM loan has to have a guarantor. If you can find a guarantor to back you up, it shows us that you are trustworthy and that we can lend you the money. It has nothing do with the interest.
We always recommend if you are able to get a cheaper loan alternative to do so but it can be difficult for a lot of people to be accepted by high street banks. This is the whole reaosn FLM started, to make affordable loans available to people who cant get credit elsewhere. Hope this helps.
Dan (12 mths ago)
Hi will i be informed if my interest increases or decreases as i would like to no how much i have to pay for that month if it alters. Regards Dan.