Piggy Bank Review 2020 | Apply Now @piggy-bank.co.uk lender
Last updated: 18th Jan 2020

Piggy Bank Review

Updated December 2019: This lender is no longer offering loans. We suggest trying an alternative solution such as Loan Skipper

About

PiggyBank is a short term direct lender loan provider that offers loans ranging between the range of £100 to £1000. It is registered in England, and anyone above the age of 18 is eligible to apply, provided that certain conditions are met. Borrowers apply online for a loan by providing personal information on an online form, after which the company processes the application and, once approved, transfers the loan amount in the borrower’s name in within one hour.

Also Check: Swift Money Payday Loans Review

Types of loans

There are two types of loans being offered by PiggyBank.

1) Payday Loans

These loans are tailored for those who need immediate funds between £100 up to £400 to cover emergency expenditure, such as a bill or an unexpected repair charge.

  • Whatever the need, this loan can be availed with a repayment date till the borrower’s upcoming payday, which can be set anytime between 7-35 days after the loan is initially availed.
  • Payback loans need to be repaid all at once, which is usually after the next payday of the borrower. Since these are short term loans with limited amounts, it is typically easy and quick to apply and receive the loan.

There are a few benefits of subscribing to this loan option:

  • In addition to it being a readily available source of cash, timely repayment of such small loans can improve the borrower’s credit rating.
  • Also, having this option can save the borrower overdraft fees which the borrower may have to pay because the need for funds had to be met with a bank overdraft.

Since banks or similar financial institutions don’t typically offer loans as small as these payday loans, the borrower would have to borrow an amount much larger than is actually required.

    • Payday loans offer loans of a minimum £100, which can be increased by steps of £10 all the way up to £400, making it easier for the borrower to borrow as much as is actually needed.

Payday loans may also be a great option for those with a problematic credit history, as such borrowers may not be eligible to apply for a bank loan or to secure a credit card. This does not mean that payday loans don’t have strict enough background credit checks. Since the amount is small and payment due date is short, the risk of defaulting on a loan is low, even with those who have a poor credit score.

On its website, PiggyBank claims to conduct thorough credit checks on all its borrowers to ensure they would be able to pay back the loan on time.

The service considers only the most recent credit history to ensure repayments were made on time, in addition to income and expenditure analysis. Since banks consider credit history spanning over a six year period, some people are unable to secure a loan from a bank due to a few missed payment due dates.

        • This means that, for those with a slightly blemished credit history, payday loans like the one being offered by PiggyBank may be the only available borrowing option.

2) Installment Loans

        • The major difference between PiggyBank payday loans and installment loans is that the former needs to be paid back all at once while the latter can be repaid in installments spanning over a few weeks or 2-5 months, depending upon the amount they borrow. For example, borrowers can schedule repayments if they have borrowed between £150-£500 over two months, £200-£600 over three months, £250-£800 over four months, and £300-£1000 over 5 months.

These repayments are scheduled at the beginning of the loan agreement, and need to be made at regular intervals. The borrower is expected to repay a portion of the total loan principal, plus the interest that has accrued. This interest charge would be fixed throughout the repayment plan, allowing the borrower to accurately budget the next repayment. Installment loans are typically quite popular in the form of mortgages or when financing a car.

        • Another feature of PiggyBank installment loans that differentiate them from payday loans is that they allow a greater amount to be borrowed, from £150 all the way up to £1000 (up to £1500 for returning customers). This makes installment loans a suitable option for those who are either looking for an amount greater than the £400 limit allowed under a payday loan, or for greater flexibility in repayment that is a feature of installment loans.

The PiggyBank installment loans are also suitable for those borrowers who are struggling to improve their credit score and cannot afford to repay a payday loan in one lump sum.

      • An installment loan makes it possible to improve credit history as it may be easier to make the periodic repayment, since each repayment can be smaller than the total amount to be paid under a payday loan and hence easier to service with the periodic paycheck.

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Eligibility Criteria

Although there are other conditions which may need to be met, PiggyBank highlights the following conditions on its websites as a must for a loan application to be approved:

1) You must have a mobile phone

For verification purposes, PiggyBank sends out a pin number on the borrower’s registered mobile phone which the borrower is required to enter on the website before the loan application can be processed. Hence, the borrower is required to have a mobile phone that has an active connection.

2) Citizen of the UK

The borrower must be a citizen of the UK, and must be living as well as working in the country as a legal citizen.

3) 18 and above

The age of the borrower has been set at 18 and above. One cannot borrow from PiggyBank if he or she is under the age of 18.

 

4) Have a job

PiggyBank requires all of its borrowers to have a job that requires them to work at least 16 hours every week.

5) A bank account

The company makes a direct bank deposit with the loan amount, once the loan is approved. Afterward, it makes automatic deductions from the borrower’s debit card provided by the same bank in order to ensure timely repayments.

Pros & Cons

The following pros & cons pertain to the PiggyBank services:

Advantages
    • A Convenient Online Account

Those who choose to borrow from PiggyBank are provided access to an online account that contains all the information provided by the borrower during the application process. This online account is especially convenient if and when borrowers need to make amendments to their personal information such as bank account details, or to view information pertaining to the loan itself, such as loan statements, or to make a partial payment.

    • The PiggyBank Promise

The company also has a special service called PiggyBank Promise, as mentioned on its website, which is available for all those who experience a change in circumstances resulting in an inability to make timely repayments or any repayments. According to the PiggyBank Promise, the company would assist such borrowers find a resolution to their situation so that timely repayments may become possible once again.

  • Allows early repayment
  • Provides an instantaneous decision on loan applications
  • Market competitive APR
Disadvantages
    • Does not contact employer during the application process

This may result in lending to an individual who is about to leave a job, resulting in worsened financial circumstances for the borrower.

    • Borrowers cannot take out multiple loans simultaneously

 

How much does a Piggy Bank loan cost?

The borrowing costs associated with the loans being provided by PiggyBank vary according to the amount and the payment terms which are set between the company and the borrower at the beginning of the loan agreement.

  • Late fees and charges do not exceed £15
  • Daily interest rate is fixed at 0.8%
  • Representative APR is 1270%
  • Annual interest is calculated at 292%
  • You will never repay more than twice borrowed

The total amount, including charges, which you would have to repay is also quoted before the borrower finalizes the loan application. Let’s take a look at 2 examples for the costs of getting a loan at Piggy Bank:

Loan TypeLoan AmountLoan TermTotal RepayableCharge of Credit
Payday Loan£25030 days£310£60
Payday Loan£100030 days£1250£250
Instalment Loan£5003 months£729.63£229.63
Instalment Loan£100012 months£1509.89£509.89

This transparency ensures borrowers are fully aware of their repayment obligations.

The representative rate at PiggyBank is 1270% APR, with a minimum of 1255% APR and a maximum of 1698.1% APR. This means that, for example, if the borrower takes out an amount of £250 for a period of 30 days, the borrower would have to pay back £310, out of which £60 would be the total interest charge.

Information Required To Apply

The following information is required during the sign-up process:

  1. Full name
  2. Email address
  3. Mobile phone number
  4. Employment Information
  5. Income Information
  6. Expenditure Information
  7. Bank Account Details

How To Apply With PiggyBank

The sign-up process starts on the homepage of the PiggyBank website. Website visitors can see the following section at the very beginning of the homepage, which allows them to personalize their loan and see relevant information pertaining to it on the right, such as total loan amount, total interest that would be charged on it, and the total that needs to be repaid including both the principal and the interest charge. The date by which the entire loan plus interest needs to be paid off is also mentioned.

Step 1Clicking on the Paying Monthly drop down button will show more options such as weekly and fortnightly payments. However, these options are only available for installment loans, as payday loans don’t exceed 35 days and need to be repaid in one lump sum payment.

Step 2

Clicking on the Last Working Day drop down menu will reveal a calendar that allows the borrower to select the date of the month when each repayment will be made. Borrowers can either pick a particular date, or simply select the last working day of the month.

Step 3

After the borrower has personalized the loan, clicking the Apply button takes them to the net step, a form that allows the creation of an account with PiggyBank.

Step 4

After submitting this personal information, borrowers are expected to fill out employment information, details pertaining to income and expenditure, and also particulars of personal bank account.

All of this information is processed and the company sends the borrower a mobile pin, which the borrower needs to enter in order to verify identity. The loan is then paid out within one hour of its approval, as per the PiggyBank website. It is also possible the company may require additional information from the borrower, in which case it may take a while longer for the borrower to secure a loan.

FAQs

PiggyBank is a direct lender. This means that the company does not forward the borrower’s request to another lender, rather vets the loan application and transfers its own funds into the borrower’s stipulated bank account.

PiggyBank tries to verify and approve loan applications within 1 hour, although some applications are sent to an underwriter for further verification which can cause delays.

No, PiggyBank does not contact employers, but will still verify the borrower’s employment status through other means. This is why it is mandatory for all borrowers to provide employment information in the loan application, as all borrowers must be working at least 16 hours every week to be eligible for a loan.

It depends. PiggyBank considers each borrower’s recent credit history to assess the borrower’s current ability to repay the short-term loan. So, if the borrower has a bad credit history because they missed a few repayments two years ago, PiggyBank may ignore that fact and still authorize the loan based upon a good recent credit record which shows timely repayments of credit obligations.

Yes, however two loans cannot be taken out simultaneously. It is only after the currently outstanding loan is paid out that another can be subscribed with PiggyBank.

Loans Like PiggyBank

Still unsure if Piggy Bank is for you? Below we compare Piggy Bank against other reputable and similar lenders. There are plenty of loans like Piggy Bank which are all reviewed and rated by Credit Raters.

PiggyBank Promo Codes

No promotional codes are available for CarFinance 247 at this time.

FreebiePromo Code
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