Have you ever found yourself in a difficult financial situation? In such cases, you may consider a high-interest short-term loan as the most convenient option. However, considering the vast number of services offered and their similarities, choosing one can be difficult.
In this review, we look at Ferratum Loans, one of these service providers, to see if it is the appropriate one for you.
There are numerous factors to consider before signing up for the service. Continue reading to learn everything you need to know to make the best decision.
What exactly are Ferratum Loans?
FERRATUM’s website has a page for creating borrower accounts.
Ferratum Loans, founded in 2005, is a long-standing direct lender with operations in several countries. The company’s headquarters are in Helsinki, Finland, and it presently works in 25 countries around the world. The lender is situated in Liverpool and operates online in the United Kingdom.
Being at the forefront of the mobile revolution, particularly in the financial sector, is one of its core visions. With this in mind, it provides a quick and simple mobile lending and banking platform.
It is a digital and mobile financial services pioneer. Credit scoring technology uses a data-driven method. Its objective is to provide the greatest lending client interface as well as 24/7 customer support online and via the mobile app.
Let’s see how well it matches up to these lofty goals.
Ferratum Loans is an online direct lender that also provides services through a mobile app and text messaging. They have two major loan products, and despite their high interest rates, they obtain great marks for customer service and dependability.
Loan Pros and Cons of Ferratum Loans
Pros:
- Fees and charges are disclosed.
Provides two separate lending products for various users.
Is there a mobile phone app?
Provides round-the-clock assistance
It is an FCA-regulated entity and a member of the CFA.
They manage the full application procedure as direct lenders and do not exchange data with third parties.
Instead of going through the entire online application process, you can reapply via text message.
Even on weekends, funding is available.
Cons: There are no early repayment costs.
- Option with a high cost
Low loan limit
There are no physical stores.
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What is the procedure for obtaining a Ferratum Loans loan?
According to its goal statement, the lender seeks to give its customers with more than just money. In keeping with this, it offers services 24 hours a day, seven days a week through its website and a mobile smartphone app.
Loan processing is transparent due to fixed and easily accessible rates, and applications are quick and easy. However, you can only apply for a loan if you are currently employed.
credit investigation
Before processing an application, they will check your credit score to determine your affordability.
However, they do not look at your credit score in isolation. Rather, they run your application through a series of checks to validate your identification and ability to repay a loan on time.
They analyse various aspects that may affect your ability to repay before making a lending decision. These include your age, previous financial management experience, and address stability.
They now use Equifax and TransUnion for credit checks. Because these are significant credit bureaus, the check may have an impact on your credit score.
Their application process is straightforward, and one key advantage is that you only need to complete it once. You can apply for further loans by text message. As long as you make the required repayments on the initial loan, you should be able to qualify for more loans in the future.
They will, however, confirm your affordability and creditworthiness before offering a loan, regardless of your payback history. They inform you of the loan’s cost before you commit to it, and there are no hidden fees.
You may also use the loan calculator to determine the value of a loan. Using this tool, you may adjust the loan amount and period to find the best fit for your financial situation.
Loan approval and disbursement
For your first application, you will most likely be approved for a maximum of £400 with a 6-month repayment period. After submitting your application, you will just have to wait a few minutes for a decision.
And, as a same-day funding business, they will most likely transfer the funds to your bank account within a few hours of approval. The lender is open even on weekends, making it simple to obtain emergency financing whenever you need it.
In the same way that you can seek cash via text, you can also request an early repayment via SMS. Similarly, the customer service team responds to inquiries via text message in addition to email and phone conversations.
If you choose to repay early, you might obtain a new lower balance to payback.
Simply because you qualified for a loan in the past does not guarantee that you will qualify in future applications. Your credit score, financial circumstances, borrowing history, and financial commitments may have changed, which may result in your application being denied.
Ferratum, as a responsible lender, considers factors such as recurring borrowing, which may indicate financial problems. Because their products are intended to be short-term solutions for financial difficulties, they may advise you to seek assistance or review your needs in such cases.
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Repayment
Loan repayments will be debited automatically from the bank account you specify during the account creation process. For this, they deploy a Continuous Payment Authority (CPA).
You can also choose to make payments via text or through the website’s online capability. Another possibility is to use your own online banking services. Online payments, on the other hand, might take up to 48 hours to reflect and are hence not recommended.
The most advised choice is to use a debit card, especially if you want to reapply for another loan.
If you are unable to make a repayment at any stage, you must inform the customer support service before the due date. They can assist you in developing a workable solution.
Ferratum Loans provides which loan products?
Ferratum provides a short-term loan with two primary sub-products for different consumers in different conditions.
The Ferratum same day loan is a short-term financial solution for someone who needs a little quantity of money to address immediate expenses. These loans are flexible and offer amounts ranging from £300 to £1,000 under the Plusloans brand.
Because these are installment loans, you can spread out the payments over 2, 3, or 4 months.
Under the same banner, they also have a product called the Microloan. The borrowing amounts range between £50 and £500. These usually necessitate a lump sum payment on your next salary. They are essentially tiny boosts to keep you going till your money arrives.
Ferratum Loans provides what other shop services?
Ferratum, in addition to lending, provides banking services both online and through its mobile app. With the utilisation of digital and mobile financial services techn
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Borrowing and Account Creation with Ferratum Loans
Creating an account and applying for a loan with Ferratum is a simple process.
1. To begin, go to the homepage of the website (https://www.ferratum.co.uk/) and, in the centre of the page, click on the slider to input your desired loan amount.
It is important to note that your first loan can only be for £400.
2. Next, choose the loan duration, which for the first loan can be up to 6 months.
This will show you the loan repayment facts, such as the interest rate, installment amounts, and total amount owed.
3. You can alter the loan amount and term to find the best fit, then click “Apply Now.”
This will lead you to the “Create Your Account” page, where you must enter your personal information.
4. Fill in your name, email address, phone number, birth date, and marital status, then click “Continue.”
Continue to enter the essential information, such as employment and income details, household details, costs, bank account information, and other facts, by following the prompts on your screen.
5. Once you’ve completed all of the details, submit your application and wait a few minutes for a decision.
You can use text for subsequent applications, as previously suggested, or log in to your account online, confirm your eligibility, and submit your application.
It is critical to exercise caution while signing up for these items. This is because you can wind up owing two to three times the amount borrowed on longer-term loans, and many people struggle to repay short-term loans without reborrowing.
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Eligibility Requirements for Ferratum Loans
There are various requirements you must meet in order to qualify for a loan on Ferratum:
- You must be at least 23 years old.
Get a job
Do you have an email address?
Have a mobile phone number
Have a checking account and a debit card
Have a respectable credit history
Borrowers Must Provide Information to Obtain Ferratum Loans
Here are some of the details you will need to supply when applying for a Ferratum loan:
- Name
The birthdate
Relationship status
Specifics about your home
Information on earnings
Expenses on a monthly basis
Details about employment
Telephone number
What are the loan borrowing costs for Ferratum Loans?
Borrowing charges for Ferratum Loans are plainly displayed on the website. Examine the projected rates you may have to deal with:
- 0.8% daily interest rate
There are no setup costs, upfront fees, or membership fees.
There are no early repayment penalties.
1.604% maximum representative APR
Representative Example: £15 late payment fee
The loan amount is £400.
4 month loan period
Fixed interest rate – 292%
Total amount repayable – £665.48 Installment amounts – £166.37
Is Ferratum Loan App Legit or Scam?
Ferratum Loan App is absolutely Legit and not a Scam, however it has some pros and cons which you need to consider before applying.
Customer Service at Ferratum Loans
Ferratum delivers exceptional customer service, according to consumer reviews made on numerous internet platforms. They are available 24 hours a day, seven days a week, and answer consumer complaints via text message.
Customers often like them since they are polite and helpful.
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Is borrowing from Ferratum Loans risky?
The Financial Conduct Authority has authorised and regulated Ferratum Loans. It also belongs to the Consumer Finance Association.
As a result, the platform must conform to the stringent operational standards established by these agencies.
Furthermore, to protect user data, its website employs conventional encryption mechanisms.
Conclusion
Ferratum Loans has been in business for over a decade, and it is clear that they are a dependable and steady financial service provider. They provide services around the clock and funding even on weekends.
The only disadvantage is that their loan limits are quite low, and their interest rates are quite high. However, they provide excellent services for anyone looking for emergency funding and are highly recommended.
FAQ
What is a CPA (Continuous Payment Authority)?
A CPA is a clause that permits lenders to deduct repayments from borrowers’ bank accounts immediately. This is an optional feature for Ferratum, and you can select alternate repayment choices.
What if my repayment due date comes on a weekend?
The Ferratum system will adapt it automatically to the Friday before the weekend. However, if you prefer an alternative date, please contact customer service.
What should I do if I receive a notice of default?
You can resolve the matter by contacting customer service by phone, text, or email to request a reduced settlement. They will tell you how much you must repay and by when.
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What is the significance of the default notice I received?
A default notice is a letter that requires you to settle your loan within 28 days or risk having a default registered against you. If you wait more than 62 days before making a payment, you will receive a default notice.
Will I be required to present identification when applying for a loan?
No, Ferratum has a sophisticated, automated method to screen all candidates. The information you give on the application form will be cross-checked against the databases of other lenders.
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