How our repayments work at Mr Lender

At Mr Lender, our customers can borrow between £200 and £1,000 with the flexibility to repay their loan:

On your next pay date
Over three to six months in instalments
Early at any point

Repayments are typically collected on the borrower's pay date, which is when they receive their salary from work each month.

A repayment date is agreed during the application process and is confirmed in your loan agreement. We will always send an email and a text message on the days leading up to a repayment so that you can have money in your account ready for collection and there are no surprises.

If you ever want to change your repayment date, you can. Simply email our customer services team or give us a call.

Repay in one lump sum

For those that have borrowed a few hundred pounds, they have the option to repay their loan in full in one lump sum on their next pay date. This is how a payday loan works and is ideal for people that just need a small injection of cash to get them out of a difficult situation such as paying for a broken boiler or car repair.

By the time they receive their next paycheck from work, they will have enough to repay their loan and interest in full. This means that the loan duration can only be a few days or weeks if you wish and you are not tied down for longer than necessary.

Our loans are based on a daily interest of 0.80% which is in line with the fca guidelines. So you are only charged for the days that you have the loan for.

Representative Example: Borrow £200 for 6 months, repay with 6 payments — payment 1: £81.33, payment 2: £73.23, payment 3: £65.13, payment 4: £57.33, payment 5: £49.24, payment 6: £41.14 . Rate of interest 0.80% per day on outstanding capital. Total repayable £367.40 (based on 30 day periods). Interest rate 292% per annum (fixed). Representative 1,245.8% APR.

To see how much your loan would cost, you can use our payday loan calculator here.

Repay over three to six instalments

For customers that want a little more flexibility, they have the option to repay their loan over three to six monthly instalments. For some, repaying the entire loan and interest on their next pay date can put pressure on their finances. We are pleased to give customers the option to repay their loan over a longer period of time and in smaller, more manageable amounts. However, the longer a loan remains outstanding the more interest will be accrued.

Whilst the majority of instalment lenders allow repayment in equal monthly instalments, the feedback we received is that it is easier for borrowers to pay in decreasing amounts and this is exactly what we have done.

So every monthly repayment will decrease as you progress through the term of your loan.

**Below is a repayment example for a £200 loan for 6 months (based on 30 day periods):**
Month	Amount owed	Capital repayment	Interest	Total instalment
1	£200.00	£33.33	£48.00	£81.33
2	£166.67	£33.33	£39.90	£73.23
3	£133.34	£33.33	£31.80	£65.13
4	£100.01	£33.33	£24.00	£57.33
5	£66.68	£33.34	£15.90	£49.24
6	£33.34	£33.34	£7.80	£41.14
	£0.00	£200.00	£167.40	£367.40

Repay your loan early

Customers can repay their loans early at any point, which offers great flexibility and a good way to save money. No need to keep your loan for any longer than you need to, if you feel that you have the income to repay your loan in full, you can do so.

You can save money because you are only charged daily interest i.e. for as long as you have had the loan. We will never charge you for any longer than the duration of your loan. If you give us the exact date that you wish to repay in full, we will gladly recalculate your repayments. We are always happy to send you a statement that proves your payment too.

To settle your account early, you can email or call our customer service team, write to us by post or log into your account here.

How payments are collected from your account

Payments are collected from your debit account using Continuous Payment Authority (CPA). When you apply, we will validate your debit card so that when it comes to your pay date, we can simply collect the money from your account saving you the hassle of setting up a direct debit or making a manual repayment each month.

In some cases, we will accept repayment by cash or cheque. We typically do not accept repayment via credit cards because this is like using credit to pay off another form of credit and can lead to debt problems.

Can someone else pay on my behalf?

In extreme cases, we may allow someone you know such as a parent, spouse or friend to repay your loan in the event that you cannot. We will require the borrower's permission in order to take payment from someone else.

Are there any late fees?

Mr Lender does not charge any late or default fees for missed repayment, even though the FCA regulation permits lenders to charge a maximum of £15 per missed payment.

However, if payment is missed, the daily interest will continue to accrue meaning that the loan repayment will increase until the interest is frozen, an arrangement has been made or the loan has been repaid.

Our collections team / customer service team will contact you via email if a repayment has not been made and we will be able to offer an arrangement or pay plan to help you repay your loan.