Fees & Interest
How much does a line of credit cost?
The exact cost of your line of credit will depend on how much you draw, and for how long.
Your line of credit costs 0.19% per day. So, you’ll need to repay 19p in interest per £100 per day.
You may be able to lower the cost of your credit line by repaying early or making extra payments above the minimum repayment set out in your monthly statement. There's no penalty fee for repaying early.
You'll need to make minimum monthly payments of 6% of the amount you borrowed.
Just remember the longer you borrow for, the more interest you'll pay. And the shorter you borrow for, the cheaper Drafty is.
Representative Example: Assumed credit limit: £1200. Representative 96.2% APR (variable). Annual interest rate 69.4% (variable).
What fees do you charge?
We don’t charge fees. That means no late fees, no transaction fees, and no fees for paying early. We just charge interest on the amount of money you draw.
Drafty is an FCA-authorised provider of a Revolving Line of Credit with a credit limit of up to £3000, available to borrow as and when you need it (subject to affordability checks). You only pay interest on what you draw/use.
Representative Example: Assumed credit limit: £1200. Representative 96.2% APR (variable). Annual interest rate 69.4% (variable).
There is no set minimum or maximum repayment term, so long as the minimum monthly repayment sum is met, however, you may repay back early without any fees and save on interest.