
Oakam is a UK-based lender that provides personal loans tailored to people who may struggle to access credit from mainstream providers. The company focuses on making loans accessible for individuals with limited credit histories or those who may be new to credit. Oakam offers loans through a digital platform, aiming to provide a straightforward and transparent borrowing experience.
This article explores the features of Oakam loans, their eligibility criteria, and what borrowers should consider before applying.
What Are Oakam Loans?
Oakam loans are unsecured personal loans designed for people with varying credit profiles, including those with bad credit. These loans are often marketed as an alternative to payday loans or other high-cost credit products.
The loan amounts range from £100 to £5,000, with repayment terms lasting between 3 and 36 months. Oakam operates online and through its mobile app, making it convenient for borrowers to apply and manage their loans digitally.
Key Features of Oakam Loans
1. Accessibility
Oakam is known for catering to borrowers who may not qualify for loans from traditional banks. They consider a variety of factors beyond credit scores, such as income and financial stability.
2. Flexible Loan Amounts
Borrowers can choose loan amounts that suit their needs, with smaller loans available for short-term borrowing and larger amounts for significant expenses.
3. Transparent Costs
Oakam provides clear information about interest rates and repayment schedules before borrowers agree to the loan. However, interest rates can be higher than traditional personal loans due to the increased risk associated with bad credit lending.
4. Digital Management
The Oakam app allows customers to apply for loans, track repayments, and manage their accounts in real time. The app also offers tools to help customers improve their credit scores.
5. Credit-Building Opportunities
For borrowers with poor or no credit history, successfully repaying an Oakam loan can help demonstrate financial responsibility and improve their credit rating over time.
Eligibility for Oakam Loans
Oakam loans have relatively flexible eligibility requirements. To qualify, applicants must typically:
- Be at least 18 years old
- Be a UK resident
- Have a regular source of income
- Hold an active UK bank account
Oakam may accept income from a variety of sources, including benefits, making it more inclusive than some other lenders.
Considerations Before Applying
While Oakam loans offer convenience and accessibility, there are key factors to weigh before applying:
High Interest Rates
Oakam loans often come with higher interest rates compared to mainstream lenders. This is common in loans for individuals with poor credit, but it increases the overall cost of borrowing.
Repayment Terms
Consider the loan term carefully. Longer repayment periods may reduce monthly costs but increase the total amount paid due to interest.
Affordability
Assess your financial situation to ensure you can comfortably manage repayments. Missing payments can lead to additional fees and negatively affect your credit score.
Alternative Options
Before borrowing, explore other lending options such as credit unions, budgeting loans, or government support schemes. These may offer lower costs or more favourable terms.
Responsible Borrowing with Oakam
If you choose to borrow from Oakam, it’s essential to borrow responsibly. Use the loan for necessary expenses and only apply for the amount you truly need. Ensure that monthly repayments fit within your budget to avoid financial strain.
Conclusion
Oakam loans provide a lifeline for those who might otherwise struggle to access credit. With flexible eligibility criteria and digital tools, Oakam offers a modern approach to borrowing. However, potential borrowers should carefully assess the costs and explore all available options before applying. Responsible borrowing is key to making the most of an Oakam loan while maintaining financial stability.