British payday firm Western Circle has launched a new app to enable customers to switch to personal loans from expensive payday loans.
Named Credit on Demand, the app will allow customers to borrow from £1,000 to £25,000 for a longer period of time using their mobile phone.
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The app, according to the company, is intended to reduce customers’ dependence on expensive payday loans by offering personal loans as conveniently and quickly as payday loans.
Western Circle noted that the average representative APR for payday loans in the UK ranges between 1,000% and 1,500%. However, the Credit on Demand app will enable people to seek loans with a representative APR of 39.7%.
Western Circle CEO Jeremy Lloyd said: “We’ve found that two key features draw consumers towards payday loans. Firstly, higher acceptance rates that allow even people with very poor credit to apply.
“Secondly, fast funding times that enable cash to reach customers’ accounts, sometimes within minutes of applying.
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By GlobalData“However, we’ve noticed a growing dependency on payday loans as users learn to rely on them each month, making them almost addictive.”
“Our new app allows people to borrow larger amounts over a longer period so that customers can experience more sustainable and less erratic borrowing. “
Currently, the app is available for download at Google Play store for free.
Western Circle focuses on developing new technologies and services to deliver affordable loans under the new FCA regulations.
Recently, the company introduced Cashfloat Pro within the Cashfloat brand. The new product, also designed to reduce payday loan dependence, allows customers to borrow higher amounts for longer period.
