What are Doorstep Loans?
Doorstep loans are a great way to raise a small cash loan in a hurry, typically the initial limit is up to £500 some lenders have raised this to £750, but you can usually borrow as little as £50, doorstep loan repayments are collected weekly from your home, hence the phrase “doorstep” the repayment period is based on the loan amount but can be anywhere from a few weeks to a few months.
Am I eligible for a Doorstep Loan?
Doorstep lenders are specialists in lending unsecured small cash amounts that are then collected from your home, thus their criteria is different to the typical high street lender, ccj’s and poor credit history are not normally a problem. They tend to look to lend to everyone but do have some basic requirements, such as;
Typical Requirements for a Doorstep Loan
- You are a homeowner or Tenant
- You are over the age of 21
- You are employed or living with an employed partner
- You have a landline or connected mobile phone
- You are not currently bankrupt or if in Scotland sequestrated
Providing you can meet the above your loan is usually approved in principle very quickly and the cash in your hand within 48hours.
What’s it going to cost me?
Because this loan repayment period is so short the APR% or interest rate on the loan is higher than your typical high street bank. Doorstep loans are aimed at lenders with a below average credit rating, and only basic questions and criteria are required to secure the loan, although the interest rates are high because your repayment period is short the amount of interest you pay back on top of the original loan is relatively small, for example a cash loan of £500 repaid at £17 weekly for 50 weeks with a typical APR of 246% the total amount repaid would be £884.
What purpose can I use the loan for?
There are usually no restrictions on doorstep loan purposes, holidays, gifts, diy, whatever you like really, they can be useful if you need cash in a hurry for fixing your car or the television has just blown up. Because you are spreading the repayments out in small manageable weekly amounts your not going to face a big bill all at once and neglect other bills that might come into the household all of a sudden.