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 £2,000 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 £2,000 and repay from 2 to 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 £300 up to £2,000, 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.
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.
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
- 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.
Call us on 020 3474 0888 or 07412 079940 or email [email protected] and we’ll be happy to help.
