Frequently Asked
Questions

What is a short-term loan?

Short-term loan means that you are borrowing the money for a short period. It typically lasts from a few weeks to a few months. Kabayan Finance offers a loan for up to 12 months repayment depending on the borrower's needs. These options are in place so that the borrower can have flexible repayment options to avoid financial stress.

What is Cash Advance?

Cash Advance is a short-term loan offered by Kabayan Finance. The customer can borrow up to £1000 and repay within 40 days. This can ease the cash requirements of the customer in the short term. This helps to cover unexpected or emergency costs like payment for emergency car repairs or medical bills and "Padala" for unexpected costs at home.

Cash Advance is not suitable for long-term sustained borrowing as it is an expensive form of credit if used in this way. You should repay the loan on the due date and not borrow more than you can afford to repay.

If you do not repay the loan on time and we have to take recovery action you may incur additional charges and you may damage your credit rating making it more difficult to obtain credit in the future.

Please refer to the "Our Charges" page for more details on the costs of taking a loan and charges in the event of default.

What is an Instalment Loan?

Kabayan Instalment is our new product. With an instalment loan, you can borrow up to £1000 and repay in 3, 6, or 12 months. This gives the borrower a more flexible repayment option with lower monthly interest rates compared to payday loans. This offers higher value and lower monthly interest rates. We will still assess your loan affordability depending on your circumstances. You should still consider carefully whether you are able to make the loan repayments on time.

How much can I borrow?

You can borrow starting from £100 up to £1000, subject to status and affordability. Your loan can be repayable from 20 days to 1 year.

How soon can I get the funds?

You will receive your funds within 2 hours of final approval of your loan application through Faster Payment Service for £5 one-off fee.

Our processing times depend on our office opening hours (please see Opening Hours page for details). Once we have been through our approval process and you have accepted our terms and conditions, you can have the funds deposited within 2 hours of final approval to your bank account for an extra charge of £5 providing your bank accepts Faster Payments (see our charges).

You will receive a notification by email and sms to confirm that the money has been deposited to your account.

What are the requirements to be eligible for a loan with Kabayan Finance?

To be eligible, you must:

  • Be at least 21 years old
  • You must be ordinarily resident in the UK
  • You must not be bankrupt or currently in am Individual Voluntary Arrangement (IVA)
  • Be in full time employment
  • Have a bank account (to receive funds)
  • Have a valid debit card (to repay your loan)
  • Need to be able to afford to pay on time

What is the Continuous Payment Authority or CPA

When you sign the loan agreement you are authorising us to take the repayment of your loan directly from your bank account via your debit card. This is called the Continuous Payment Authority or CPA for short.

Full details of how the CPA works including the right to cancel will be provided to you as part of the Adequate Explanations Sheet provided with your documents to ensure that you understand but if you are unclear please contact customer services and they will explain everything to you. See below for a summary of the CPA process.

  • We will attempt to take each repayment (amount) of your loan on the date that you have told us that your salary will be paid into your account. These being on the due dates shown in your agreement.
  • If for whatever reason an attempt by us to take a repayment fails on those due dates, we will attempt to take the payment from your account a second time on the same day. Should this fail we will contact you with the view of obtaining your consent to the taking of any further payments from your account.
  • We will not request any payment amount other than the repayment specified in the repayment schedule to the loan agreement.
  • If we were unable to contact you, then we will not make any further attempts to take the repayment without first agreeing the amount of the repayment with you and when we will take it.
  • If, your bank in making the payment, results in your bank account being overdrawn without their authority then your bank may charge you a fee.
You have the right to cancel the CPA at any time up to close of business on the day prior to the due date. You may cancel the CPA by notifying Kabayan Finance directly or contacting your payment service provider. If you do cancel the CPA you will need to repay your loan by an alternative method on the due date or you will go into arrears. This may result in further charges and a default on your credit record which may make it more difficult to obtain credit in the future.

What if I change my mind?

You have a a limited time to withdraw from the agreement once you have signed it and we have accepted it. To do so you must contact us giving notice that you wish to withdraw. You must do this by 14 days from when you sign the agreement and after 14 days you will have lost the right to withdraw. Once you give notice you must then return the amount of credit you borrowed to us immediately otherwise you will remain indebted to us. Until you have done this we may charge yo interest on a daily bais at the contractual rate.

What happens if I can't repay my loan on time?

If you are in financial difficulty, please contact us. We will deal with you sympathetically and do what we can to help you to pay what you owe. We can make a payment arrangement to allow you more time to repay your debt over a longer period to avoid going into default. Being in default may incur additional charges and impair your credit record, which may make it more difficult to obtain credit in the future. We will apply to a court of law for a judgement directing you to repay us. If we are successful and you still do not pay then we may then ask the court to enforce payment in a number of ways which may include a direction for your employer to deduct payments from your wages.

What happens if I have a Complaint

At Kabayan Finance, we do everything we can to make sure you get the best possible service. However, if you're not completely happy with our service, we need to hear about it - that way, we can do something to put it right. Click here to read our complaints procedure.

Read All FAQs

What is a short-term loan?

Short-term loan means that you are borrowing the money for a short period. It typically lasts from a few weeks to a few months. Kabayan Finance offers a loan for up to 12 months repayment depending on the borrower's needs. These options are in place so that the borrower can have flexible repayment options to avoid financial stress.

 

What is Cash Advance?

Cash Advance is a short-term loan offered by Kabayan Finance. The customer can borrow up to £1000 and repay within 40 days. This can ease the cash requirements of the customer in the short term. This helps to cover unexpected or emergency costs like payment for emergency car repairs or medical bills and "Padala" for unexpected costs at home.

Cash Advance is not suitable for long-term sustained borrowing as it is an expensive form of credit if used in this way. You should repay the loan on the due date and not borrow more than you can afford to repay.

If you do not repay the loan on time and we have to take recovery action you may incur additional charges and you may damage your credit rating making it more difficult to obtain credit in the future.

Please refer to the "Our Charges" page for more details on the costs of taking a loan and charges in the event of default.


What is an Instalment Loan?

Kabayan Instalment is our new product. With an instalment loan, you can borrow up to £1000 and repay in 3, 6, or 12 months. This gives the borrower a more flexible repayment option with lower monthly interest rates compared to payday loans. This offers higher value and lower monthly interest rates. We will still assess your loan affordability depending on your circumstances. You should still consider carefully whether you are able to make the loan repayments on time.

 

How much can I borrow?

You can borrow starting from £100 up to £1000, subject to status and affordability. Your loan can be repayable from 20 days to 1 year.

 

How soon can I get the funds?

You will receive your funds within 2 hours of final approval of your loan application through Faster Payment Service for £5 one-off fee.

 

Our processing times depend on our office opening hours (please see Opening Hours page for details). Once we have been through our approval process and you have accepted our terms and conditions, you can have the funds deposited within 2 hours of final approval to your bank account for an extra charge of £5 providing your bank accepts Faster Payments (see our charges).

 

You will receive a notification by email and sms to confirm that the money has been deposited to your account.

 

What are the requirements to be eligible for a loan with Kabayan Finance?

To be eligible, you must:

  • Be at least 21 years old
  • Be in full time employment
  • You must be ordinarily resident in the UK
  • You must not be bankrupt or currently in am Individual Voluntary Arrangement (IVA)
  • Have a bank account (to receive funds)
  • Have a valid debit card (to repay your loan)
  • Need to be able to afford to pay on time

 

What is the Continuous Payment Authority or CPA

When you sign the loan agreement, you are authorising us to take the repayment of your loan directly from your bank account via your debit card. This is called the Continuous Payment Authority or CPA for short.

 

The full details of how the CPA works including the right to cancel will be provided to you as part of the Important Information Sheet provided with your documents. This is to ensure that you understand the terms and conditions, but if you are unclear please contact customer services and they will explain everything to you. Please see below for a summary of the CPA process.

 

  • We will attempt to take the repayment of your loan on the date that you have told us that your salary will be paid into your account.
  • If that attempt fails as a result of, for instance, a delay in your salary entering your account we will try and contact you on that date. If we are able to contact you, we will not make any further attempt to take repayment without agreeing the amount of the repayment with you.
  • We will never use your CPA in way to collect payments or reduced payments that we have not explicitly agreed with you in advance so that you will always know the amounts and dates that we are going to collect. This means we will not at anytime attempt to collect part payments if you are late making your payments.
  • You have the right to cancel the CPA at any time up to close of business on the day prior to the due date. You may cancel the CPA by notifying Kabayan Finance directly or contacting your payment service provider. If you do cancel the CPA you will need to repay your loan by an alternative method on the due date or you will go into arrears. This may result in further charges and a default on your credit record, which may make it more difficult to obtain credit in the future.

What if I change my mind?

You have a a limited time to withdraw from the agreement once you have signed it and we have accepted it. To do so you must contact us giving notice that you wish to withdraw. You must do this by 14 days from when you sign the agreement and after 14 days you will have lost the right to withdraw. Once you give notice you must then return the amount of credit you borrowed to us immediately otherwise you will remain indebted to us. Until you have done this we may charge yo interest on a daily bais at the contractual rate.

 

What happens if I can't repay my loan on time?

If you are in financial difficulty, please contact us. We will deal with you sympathetically and do what we can to help you to pay what you owe. We can make a payment arrangement to allow you more time to repay your debt over a longer period to avoid going into default. Being in default may incur additional charges and impair your credit record, which may make it more difficult to obtain credit in the future.

We will apply to a court of law for a judgement directing you to repay us. If we are successful and you still do not pay then we may then ask the court to enforce payment in a number of ways which may include a direction for your employer to deduct payments from your wages.

What happens if I have a Complaint

At Kabayan Finance, we do everything we can to make sure you get the best possible service. However, if you're not completely happy with our service, we need to hear about it - that way, we can do something to put it right. Click here to read our complaints procedure.


Loans between
£100 and £1000*
available within 2 hours**
of final approval
*upon approval
** With faster payment service, your funds will be sent
to your bank account within two hours of final approval
of your loan application for £5 fee.

Representative Example Amount of credit £500. Total Amount Repayable of £750 by 6 monthly payments of £125 commencing 1 month from the date of the agreement. Duration of Agreement is 6 months. Annual Interest Rate is 100% flat (fixed). Representative 332.4% APR.

Compare high cost short term loans at www.choosewisely.co.uk

* The rate of interest applied to calculate the interest payable on this loan is 50% on the amount borrowed which equates to 100% per annum.



Representative Example Amount of credit £300. Faster Payment Fee £5. Total Amount Repayable of £365 by 1 payment of £5 (fee) on signing and a final payment of £360 on the 29th day. Duration of Agreement is 29 days. Annual Interest Rate is 240% flat (fixed). Representative 1080.30% APR.

Compare high cost short term loans at www.choosewisely.co.uk

* The rate of interest applied to calculate the interest payable on this loan is 20% on the amount borrowed which equates to 240% per annum
Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk.
 
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