The following article explains how interest rates, fees, and repayment structures are calculated and how they function for the majority of payday loans facilitated by unclepayday. For full and detailed information regarding your particular loan, reference the materials received in your loan agreement or contact your lender. Each loan is different, and your loan terms may differ significantly from those examples stated below. All figures on this page are to be considered examples only.

While it is impossible to know how much your loan will cost beforehand, you should expect to pay somewhere between £15 and £30 for every £100 you borrow in a payday loan.

Finance Charges

Finance charges are the official banking term for the additional costs of a loan beyond the original loan amount. Finance charges include taxes, fees, and the interest rate of the loan, and are usually paid back in addition to the total principle amount on the final day of the loan period.

Lenders do not assess finance charges the same for every loan; instead, finance charges are different for every single loan and borrower, and are determined based on a number of different personal and financial factors. unclepayday has nothing to do with your finance charges, only your lender has information regarding them and sets them themselves.

How to Repay a Payday Loan

The vast majority of the payday loans which are granted through the services of unclepayday are to be repaid in a single instalment the next time the borrower receives his or her salary. This repayment not only includes the initial loan amount but the finance charges assessed on the loan as well.

Some of the lenders in our lender network may give you a few different repayment options, including the ability to repay the loan over two payments, or even the opportunity to repay the loan early. You individual lender will inform you in the case that there are multiple repayment options available.

One-Payment Payday Loan Repayment

The following chart indicates how much a loan would cost based on the standard single-payment option over the course of 30 days. The chart shows typical examples of the finance charges charged by lenders for three different levels of borrower, average, good, and excellent. Your lender will determine what level of borrower you are based on the information you provide them, and will assess finance charges to match that assessment.

Two-Payment Payday Loan Repayment

In the case that your lender offers you the opportunity to repay the loan over two pay periods, the finance charges are assessed using a 60 day loan period. With a two-payment payday loan, after approximately 30 days you will be charged only one instalment of finance charges, with a second instalment of finance charges plus the initial loan amount due 30 days after that.

Loan Extensions

There are times when a lender may find them in the situation where the repayment date is rapidly approaching, but for some reason they may not be able to repay the loan when that date arrives. If this happens to you, contact your lender as soon as you think that you might not be able to repay the loan on time. They will work with you to find other options for repayment.

One of the options which lenders may offer is the opportunity to rollover the loan to another pay period, or to extend the loan with a partial payment on the original due date. Some lenders may not allow you to extend or rollover the loan, but may give you other options which can help you repay the loan without incurring too many additional fees.

Both of these situations will allow you to avoid paying expensive late fees and penalties, but will result in additional finance charges. These additional finance charges and extension fees will certainly be less than the amount you would pay in penalty fees.

Insufficient Funds

Loans through unclepayday are repaid through an automatic direct debit from your bank account on the due date of the loan. If there is not enough money in your account on this date, your bank may charge you an insufficient-funds penalty. This penalty is assessed by your bank, not by the lender; contact your bank directly for more information.

Responsible Borrowing

Do not take out any kind of loan, payday or otherwise, if you cannot be sure that you will be able to repay the loan. The consequences of repaying a loan late or complete failure to repay a loan may be far worse than the financial situation that led you to the loan in the first place. Never, ever, ignore a loan and hope it will just go away if you don’t repay it. It won’t.

Responsible Lending

All of our lenders conform to 1974’s Consumer Credit Protection Act, as well as any and all regional and national laws of the United Kingdom which pertain to lending and payday loans.

In order to maintain our reputation as a place to go to find reputable lenders who offer great payday loans, unclepayday constantly monitors its lending partners to make sure that they are adhering not only to legal requirements, but also to code of ethical lending practices. In the event that one of our lenders is in violation of any one of the numerous and strict standards which we hold them to, we shall disassociate ourselves from them immediately. If you feel that the lender we matched you with is engaging in deceptive, unethical, or illegal lending practices, notify us immediately.


In following both legal requirements and fair lending practices, unclepayday’s network of lenders are required to disclose all terms regarding the loan before the loan agreement is signed. This document includes important information such as the repayment date, extension options, finance charges, APR, loan amount, and possible penalties. Be sure to read this document and understand it completely before signing the agreement. Your lender is always available to answer questions about the loan before and after you sign the agreement.

Loan offers made through unclepayday are risk-free, and our customers are not obligated to sign any loan which they do not understand or agree with. You never have to take out a loan if you don’t want to. If you are being pressured to sign a loan you do not want and are being threatened with penalties if you do not sign, please contact us immediately.