The high cost of bank overdrafts for small loans
One of the first options many people think of when they need short-term credit is a bank overdraft. But as many people have noticed, bank overdrafts are an expensive option even when the overdraft is authorised. Especially when the amount borrowed is small, bank overdrafts are not much cheaper than payday loans. The bank may charge you a fee to set up the overdraft as well as a daily fee of £1/day (£30/month). Unauthorised overdrafts may cost as much as £2/day (£60/month). Partial repayments of the overdraft often have no impact on the daily flat fee.
One month's interest on a £500 Loan
|Unauthorised Overdraft||Authorised Overdraft||Unbolted Asset Loan|
In contrast, Unbolted only charges £15/month interest on a £500 loan and any partial repayment that you make reduces the interest that we charge. And you receive the money in as little as 24 hours after you submit an online application with us.