Swap & Save Loan

Tidy up your finances by consolidating outstanding borrowing into 1 manageable repayment

For all members

Borrow between £2,000 – £25,000

or if preferred

Interest rate 12.7% pa (13.5% APR)

Are you looking to manage your debts and reduce your monthly outgoings?

If you’ve got outstanding borrowing with one or more lenders, our new Swap & Save Loan could help tidy up your finances and save you money. We could help by consolidating credit cards, store cards, overdrafts, personal loans and other borrowing into one manageable repayment with a lower rate of interest.

Why a Swap & Save loan could help you

Juggling multiple repayments can make your finances complicated. By consolidating all your borrowing into one manageable repayment with a lower interest rate, we can help you tidy up your finances and reduce the amount you repay each month. Our Swap & Save Loan can help by: –

  • Reducing the total amount of interest paid
  • Reducing your monthly repayments
  • Having a single repayment, straight from payroll, in one manageable place
  • Making budgeting simpler, with one payment instead of many
What debts can I consolidate with a Swap & Save Loan?

Credit Cards – the interest rate charged by most credit cards is higher than our Swap & Save loan. It can take years to clear credit cards if you only repay the ‘minimum payment’ each month as your repayments cover little more than the interest. The way your credit card costs are worked out can be quite complicated too. Use this site to explore how much your card costs you.

Store Cards – with upfront discounts on spending, store cards can be very tempting and convenient. However, they often charge high interest rates, and even fees, which can swallow up repayments, so it can take years to clear store card debts.

Overdraft – Did you know overdrafts are now one of the most expensive forms of debt with most banks and building societies charging an interest rate between 30% and 40%, and for some, as much as 50%. Find out more here

Buy Now, Pay Later – managed correctly, buy now, pay later firms like Klarna, Clearpay & Laybuy can be an easy way to make a purchase, but you risk being charged late fees if you miss a repayment. If you continually miss making repayments, these fees could eventually dwarf the cost of the product you’ve bought and hurt your credit report.

Personal Loans – It can be easy to accumulate a number of personal loans, whether for new furniture, your car, home improvements and so on, making your finances complicated.

What you’ll need to apply for a Swap & Save Loan

To apply for a Swap & Save loan you will need the following information to hand: –

  • 1 recent full payslip, no more than one month old, showing your details and pay figures
  • Your bank or building society login details for your current account, for you to authorise your bank to give us permission to access your bank statements using Online Banking (or 3 months full bank statements)
  • Details of all your existing borrowing, including monthly payments, APR rates, and outstanding balances left to repay
How to find details of your existing borrowing

For some of us, it can be a little overwhelming to find the information needed. Here are some simple steps to help: –

  • Make time to find the information and be methodical
  • Use bank statements or login online to your current account, and make a list of all the companies & repayment amounts you’re currently making
  • Add up your monthly payments – it may be more than you were expecting
  • For each company you’ve identified, find your most recent statement – you may need to check online or contact the company and ask for an up-to-date statement
  • From the statements, list the total amount outstanding for each company and the current APR rate you’re paying – you may have to look in the small print for the APR rate
  • Add up the total amount owing – it may be more than you were expecting
  • Identify the APR rates which are higher than our Swap & Save loan (13.5% APR)
  • Use our handy loan calculator to see how much a Swap & Save loan might cost & decide which debts you wish to consolidate
  • You may need to contact some companies to get a ‘Settlement Figure’

Top Tip – If you’re application is approved, you will need to provide us with further details so we can pay your existing lenders, so keep all the statements and information until we’ve made a decision.

Swap & Save Loan at a glance
  • Borrow between £2,000 – £25,000 to Swap & Save existing borrowing
  • Competitive interest rate of 12.7% p.a. (13.5% APR)
  • Maximum loan term is 6 years
  • Paid directly to existing lenders – as a responsible lender, we recommend you close the accounts once cleared, to avoid the temptation of building up debt again
  • Save a minimum of £2/week or £10/month as you borrow, so you will have savings once your loan is cleared. No Regular Shares account withdrawals will be permitted until the Swap & Save loan is below your Regular Shares value
  • Easy online application, or apply by using our Nivo App on your mobile
Benefits of a Swap & Save Loan
  • Tidy up your finances and reduce the amount you repay each month
  • No set up charges, early settlement charges or hidden fees unlike many other lenders
  • No penalties for early repayments and you’ll save interest too
  • Interest is charged on your outstanding loan amount so will reduce with your decreasing balance
  • Convenient weekly or monthly repayment, tailored to suit your budget
  • One clear end date
  • Build savings whilst repaying your loan
Things you should know
  • You must save a minimum of £2/week or £10/month into your Membership Account in addition to your loan repayment, so you will have savings once your loan is cleared. No Regular Shares Account withdrawals are permitted until the Swap & Save Loan is below your shares value, as the balance is now secured against your loan.
  • The Swap & Save loan helps you get your finances back on track, so Top Ups are not permitted.
  • The Swap & Save Loan is not available to members who are bankrupt or have an Individual Voluntary Arrangement (IVA) that shows on their credit report.
  • You must consolidate 1 or more existing debts with a Swap & Save loan.
  • A Swap & Save loan will not be right in every situation, and there may be better alternatives, particularly if you are already facing significant difficulties with problem debt.
  • Other terms and conditions may apply.
Speeding up your assessment with Open Banking

With your consent, we use Open Banking to review your income and expenditure, speeding up the assessment process and saving you time. Open Banking is safe and secure, quick and easy. For more information on Open Banking, click here.

If we cannot use Open Banking, you will need to supply us with copies of your last 3 months bank statements, before we can consider your application. The bank statements must cover the 3 months up to the date of your application, and must include your name details*. Poor quality or incomplete copies cannot be accepted, and will delay your application. Open Banking is therefore the quickest, easiest and most secure way to provide us with the required income and expenditure information.

* If your address (or name) is different to the one on our system, we will need to see a recent, official proof of address document like a bank statement or utility bill before considering your loan application.

Or if you prefer: –

Loan Calculator

Use our loan calculator to see how much you could borrow and how much you would pay back.

Which Loan?

Need help finding the right Loan for you? Then use our Penny Post Loan Finder.

Loan FAQs

For help and guidance on applying for a Penny Post loan and everything you need to know to guide you through the application process.

Representative Examples

Weekly repayments

Borrowing 5,000 over 275 weeks will cost £24.97 a week. Total amount repayable is £6839.62 which includes interest at 13.5% APR.

Weekly repayments

Borrowing £12,000 over 208 weeks will cost £73.60 a week. Total amount repayable is £15,257.45 which includes interest at 13.5% APR.

Monthly repayments

Borrowing £8,000 over 40 months will cost £251.44 a month. Total amount repayable is £9,676.89 which includes interest at 13.5% APR.

4/Weekly repayments

Borrowing £3,000 over 144 weeks (36 x 4/weekly repayments) will cost £99.19 every 4/weeks. Total amount repayable is £3,529.68 which includes interest at 13.5% APR.

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