Kabayan Finance was launched in 2009. It was especially established for the Filipino community in the United Kingdom. It provides short-term or “cash advance” loans with amounts ranging from £300 to £1,000 which can be repaid in 20 to 40 days, or in installments of 3, 6, or 12 months.
Recently, they can structure longer term instalment loans to satisfy most needs. They are also committed to the principles of responsible lending.
Kabayan Finance is actively involved in the United Kingdom’s Filipino community. It sponsors cultural and community events and attends to the major Barrio fiestas. The lender offers a bilingual service in both English and Tagalog. Thus, it is helpful for people who find it hard to understand complicated loan conditions in second language.
They are one of the lowest-cost payday lenders in the United Kingdom as they offer loans with lower monthly interests and more flexible payment terms.
Why Choose Kabayan Finance?
- They offer loan amounts ranging from £300 to £1,000. You must note that the amount you are offered will depend on various circumstances and your ability to repay the loan.
- With Kabayan Finance, you can choose how you repay your loan. You have the option to choose a “cash advance” if you will be able to pay the money back after your next paycheck or within 40 days. You also have the option to pay it back in installments over a period of 3, 6, or 12 months.
Remember that if you choose a longer repayment term, a lower interest rate will be offered to you. However, you must be aware that interest is charged daily so you will still pay a larger amount for your total interest if you opt for a longer loan term.
- You can choose to avail of the Faster Payment Service. Once your loan is approved, the money will be released in your bank account within 2 hours. A one-off fee amounting to £5 will be charged for this option.
- Availing of a loan from Kabayan Finance may help in building your credit rating. If you are able to repay your loan on time, it will increase your chances of improving your credit rating.
- With Kabayan Finance, you can opt for early repayment. You have the option to repay your loan in full or in part at any time without being charged with an early repayment fee which is a good idea because you will be able to save money on interests.
Types of Loan Offered
- Short-Term Loan
A Short Term Loan means that you are borrowing cash that will be repaid within a short period. It usually lasts from a few weeks to a few months. Kabayan Finance offers a loan that can be repaid for a maximum of 12 months depending on the needs and capacity of the borrower. These options are offered so that the borrower can have flexible repayment options.
- Cash Advance
A Cash Advance is a short-term loan wherein the client can borrow a maximum of £1000 and repay the amount within a period of 40 days. This type of loan is best in covering unexpected or emergency expenses such as costs for emergency medical bills or car repairs and “Padala” for unexpected costs back home.
You must note that a Cash Advance is not suitable for long-term sustained borrowing since it is an expensive form of credit if used in this way. You should always repay the loan on the set due date and not borrow an amount that is more than you can afford to repay.
Failure to do so will result in the lender would have to take recovery action and you may incur additional charges. It may also affect your credit rating negatively thus, making it more difficult to obtain credit in the future.
- Instalment Loan
Kabayan Instalment is the newest product offered by Kabayan Finance. With the instalment loan, you can borrow a maximum of £1000 and repay the amount within a period of 3, 6, or 12 months. This option gives the borrower a more flexible repayment option with lower monthly interest rates as compared to payday loans.
Kabayan will still assess your loan affordability depending on your circumstances. You must remember that you should still carefully consider whether you are able to make the loan repayments on time.
To be eligible for a loan with Kabayan Finance, 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)
- You must be a resident of the United Kingdom
- You must not be bankrupt or currently in an Individual Voluntary Arrangement (IVA)
Disadvantages of Kabayan Finance
- Their loans come with fixed, high interest rates. With high interest rates being charged daily, this is surely an expensive way to borrow money.
- If a payment is missed, up to 2 reminder letters will be sent to you and they will charge you £2.50 every time. Once a third letter is sent to you, you will be charged with a £10 late payment fee. Kabayan Finance will send a maximum of 4 letters before further action is taken against you.
How Do I Apply For A Loan From Kabayan Finance?
- Choose between a cash advance loan (repayable in 20 to 40 days) or an instalment loan (repayable in 3, 6 or 12 monthly instalments).
- Complete the simple online application form by providing your personal, employment, and financial information.
- A credit check will be performed by Kabayan Finance on you. It will then present you with a decision on a loan and the amount you could borrow.
- Once you accept the loan terms, the amount will be credited to your bank account. If you choose to avail Faster Payment Service, the amount will be credited within 2 hours with a one-off charge of £5.
How Do I Repay My Loan?
Like most short-term loan providers, Kabayan Finance makes use of a continuous payment authority (CPA) to collect the repayments from the bank account of their borrowers on their chosen dates.
What is a Continuous Payment Authority (CPA)?
A CPA is a recurring payment in which you give a firm permission to withdraw your set repayments from your bank account on a regular basis.
When you sign the loan agreement, you are giving Kabayan Finance the authority to take the repayment of your loan directly from your bank account via your debit card.
CPA gives Kabayan Finance the ability to withdraw money from your account whenever they wish to. They will also be able to take payments of various amounts even without consulting you. Most payday loan firms will use CPA to collect your repayments, however, you have the option to cancel this at any point by either consulting with your bank or your provider.
The complete information of how the CPA works including your right to cancel will be provided to you as part of the Important Information Sheet that will be provided with your documents.
This is to make sure that you understand the terms and conditions, however, if you still do not understand some of the details, you can contact their customer services and they will explain everything to you.
They will try to take the repayment of your loan on the scheduled date that you have chosen. However, if that attempt fails as a result of, for example, a delay in the crediting of your salary into your account, they will contact you on that date. If they can contact you, they will not make any further attempts to take repayment without agreeing the amount of the repayment with you.
You must note that Kabayan Finance will never use your CPA in way to collect payments or reduced payments that they have not agreed with you explicitly in advance. This means that they will not at any time try to collect partial payments if you are late making your payments.
You also have the right to cancel the CPA at any time up to the close of business on the day before your scheduled due date. You may cancel the CPA by directly notifying Kabayan Finance or by contacting your payment service provider.
If you do cancel the CPA, you will need to repay your loan via an alternative method on the due date or you will incur arrears. This may result in additional charges and a default on your credit record which may make it harder for you to obtain credit in the future.
Frequently Asked Questions
- How soon can I get the funds?
Answer: The processing time of your loan will depend on their office opening hours. Once your application have been through their approval process and you have already accepted their terms and conditions, you can have the funds deposited to your bank
If you opt to avail the Faster Payment Service your funds will be received within 2 hours after the final approval of your loan application through. You will be charged with a one-off fee of £5 for this option.
You will receive a notification by SMS and email as a confirmation that the money has already been deposited to your bank account.
- Can I withdraw from my agreement?
Answer: Once you have signed their agreement and they have accepted it, you will be given a limited time to withdraw from the agreement. To do so, you must immediately contact them and give notice that you want to withdraw.
ou must do this within 14 days from the day that you enter the agreement. If you plan to do this after 14 days, you will have lost your right to withdraw.
Once you give notice about you plan to withdraw, you must then immediately return the amount of credit that you borrowed from them, otherwise, you will remain indebted to with the company. Until you have done this, they may charge you interest daily at the agreed contractual rate.
- What shall I do if I can’t repay my loan on time?
Answer: If you are experiencing financial difficulty and you will not be able to repay your loan on time, you can contact them. They will sympathetically deal with your situation and look for ways to help you repay what you owe. They can offer a payment arrangement that will give you more time to repay your debt over a longer period so you can avoid going into default.
Being in default may cost additional charges and negatively affect your credit record which may make it harder for you to obtain credit in the future.
- What can I do if I have a complaint?
Answer: If you’re not completely satisfied with their service, you can notify them. You can visit https://www.kabayanfinance.co.uk/complaints-procedure.htm to read about their complaints procedure.
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