Abound Loans Review

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abound loans

Abound provides personal loans without requiring collateral and is open to considering people who might not have a strong credit background. They will examine how much you earn, your expenses, and your credit past before making a decision on your loan application.

When you request a loan from Abound, it could take up to two days to receive an answer. However, if your loan is approved, you can expect to receive the funds in your bank account on that very day.

you will have to pay a fixed fee for the loan that you cannot get back, but if you decide to pay back the loan sooner than planned, Abound won’t charge you extra fees or interest. This is a benefit that you may not find with other loan providers.

Abound loans overview

Abound is a consumer lending financial firm that provides personal loans in the UK. The company offers low-cost loans up to £10,000 with a fast and personalized quote that doesn’t impact credit scores. Abound’s approach to lending is unique in that it looks at the full picture of an individual’s financial situation, including their income, spending habits, and remaining funds, rather than just relying on credit scores.

Abound’s mission is to increase access to affordable loans and provide a more ethical and adaptable lending solution. The company’s founders, Michelle and Gerald, have a personal experience of struggling to get a loan due to lack of credit score, which motivated them to create a better system.

The company’s loan terms are transparent, with a representative loan example of £2,000 loan repayable over 36 months with a fixed interest rate of 20.2% p.a. and a representative APR of 25.8%. The total amount repayable is £2,793.60, which includes a £130 fee.

Abound’s application process is online and requires minimal documentation, with funds typically available within 24 hours. The company has received positive reviews from customers, with one reviewer describing it as the “best experience I had ever taking a loan.”

Abound loans pros & cons

Abound loans offer a unique repayment system, allowing borrowers to adjust their monthly payments within a specific range. Here are the pros and cons of Abound loans:

Pros:

  • Flexible repayment system: Abound loans allow borrowers to adjust their monthly payments within a specific range, giving them more control over their finances.
  • Continuous payment authority (CPA): Repayments are collected via a CPA, which is a form of direct debit from the borrower’s bank account, making it easier to manage payments.

Cons:

  • Limited information available: As Abound loans are a relatively new and niche product, there is limited information available about the company and its lending practices.
  • Unconventional repayment system: The flexible repayment system may not be suitable for all borrowers, as it requires careful budgeting and financial planning to ensure timely payments.
  • Potential for high interest rates: As with any loan, interest rates may be high, and borrowers should carefully review the terms and conditions before signing up.

Where Abound loans stand out

Abound loans are distinguished by several unique features that set them apart from other lenders:

  • Interest Rates: They offer interest rates ranging from 15.8% to 25.8%, which can significantly lower your borrowing costs.
  • Financial Tools: Abound provides tools to help you understand your financial capacity, aiming to minimize your total cost of borrowing.
  • Repayment Flexibility: You can manage your repayments dynamically, similar to a credit card, choosing to pay either a minimum or fixed amount. Paying more when possible is encouraged to reduce the total interest.
  • Digital Experience: The loan application process is entirely online, allowing you to apply, submit ID documents, and manage your loan through their web app.
  • Personalized Approach: Unlike some lenders who only consider credit scores, Abound looks at the full picture, including your income, spending, and remaining balance at the end of the month

Where Abound loans fall short

While Abound loans offer several advantages, there are areas where they may not meet everyone’s needs:

  • Loan Cost: Some users have found the loans to be expensive, indicating higher interest rates can be a concern.
  • Process Time: The loan application process can be lengthy for some, with reports of over a week to process due to repeated requests for consent or ID verification.
  • Complexity: A few customers have mentioned that the loan terms and process can be confusing.

Eligibility for an abound loan

To be eligible for an Abound loan, you must meet certain criteria. Here are some key points to consider:

  • Age: You must be at least 18 years old.
  • Credit score: While Abound does consider credit scores, they also assess your personal circumstances and financial history. This means that even with a lower credit score, you may still be eligible for a loan.
  • Bank account: Your bank account must have Open Banking functionality to be eligible for a loan with Abound.
  • Loan amounts and terms: Abound offers loans ranging from £1,000 to £10,000 with repayment terms of 12 to 60 months (1 to 5 years).
  • Eligibility check: Abound performs a soft credit check, which does not affect your credit score, to assess your eligibility for a loan.

Some Questions

Why is the interest rate on my “borrow more” loan different from my previous loan? 

The interest rate may vary based on factors like your credit history and financial situation.

What should I do if I’m experiencing financial difficulties? 

If you are facing financial challenges, reach out to Abound to discuss your situation and explore possible solutions.

What happens if I can’t make my repayments? 

If you are unable to make repayments, it is essential to communicate with Abound promptly. They may offer options to help you manage your payments.

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