Kravings loans include a one-off arrangement fee that covers costs associated with the loan, including setup and servicing known as "Origination fee".
These costs include various administrative expenses, such as processing the loan application, conducting credit checks, verifying documentation, and managing the loan throughout its term.
By charging an arrangement fee, Kravings ensures that it can cover these operational costs and continue to provide a high-quality experience to our customers.
There are no hidden charges, and we will never ask you for any money upfront. We make it simple for our customers by adding the fee to the amount you borrow, and it is paid back as part of your regular monthly payments.
Here’s how it works:
Upfront Charge: The fee is usually a small percentage of your loan amount. For example, if you borrow £1,000 and there’s a 1% loan fee, the fee would be £10.
Fee added to your Loan: This fee is added to the loan amount before you receive the funds. So, if you’re approved for £1,000 and there’s a £10 loan fee, you’d receive £1000, your capital payable will be £1010 this includes the £10 fee. This is what you’ll be repaying over time.
Repayment: The loan fee is part of the total loan cost, which means it will affect your overall repayment amount slightly. However, it doesn’t change your monthly payments unless stated otherwise.
Loan fees are common and help cover the costs of setting up the loan. We’ll always let you know if there’s a loan fee before you accept the loan, so you can make an informed decision. If you have questions about your specific fee, feel free to ask!