Borrow up to £995
Rates from 278% to 1576%
3-12 month repayment
From £1,000 to £25,000
Rates from 4.7% to 278%
3-36 month repayment
Representative Example: Borrow £700 and pay £111.27 per month for 12 months at an interest rate of 140% per annum (fixed).
The total charge for credit is £635.24 The total amount repayable is £1335.24. Representative 277.5% APR (variable). Your APR rate will be based on your circumstances.
† Not all loan types and amounts are eligible for 20 minute payouts. Your chosen bank may increase the time you receive the funds.
A guide to small loans and their benefits
No matter how we carefully plan our finances, there sometimes comes a time when we need to secure extra funding for different needs and purposes. But the additional financing that we need can sometimes just be a thousand pounds or less. Luckily, there are plenty of small loans in the UK that can provide you with a bit cash to tide you through the temporary financial bleeding. Below, you will know all about the small loans, why you might need them, and the benefits that you can enjoy when you avail the credit options.
Small Loans in the UK
Small loans are financial products that are offered in small amounts – typically anywhere from £50 to £1,000. They are also one of the few credit options in the UK that you can easily turn to when you are caught up with emergency expenses. They are often unsecured – there is no need to offer any collateral to obtain them – with very short payment terms from a month to 3 months depending on the lender and the type of option that you choose. Qualifying for small loans is also generally easy and even those who have bad credit can get approved in an instant as long as they are enjoying a stable source of income that is enough to cover the repayments. Reasons why you need Small Loans Small loans are ideal credit options if the extra funding you need is not that big. They also work best for people who prefer a short-term loan that they won’t have to pay-off in years. There are plenty of reasons why you may need to obtain small loans from time to time and they include:
- There is an unexpected expense that you need to deal with now rather than later
- There is a medical bill that you need to cover ASAP
- There is a car or home repair that requires immediate attention
- You need to purchase a gift for a special event that will commence in a few days
It could also be that your washing machine or heater suddenly broke down and you need to fix or replace it right away. In these instances, small loans could be the instant solution you are looking for.
The 6 benefits of small loans
Small loans are quick and convenient solutions to everyday problems and emergency finances. The financial products also provide amazing benefits that have been the primary reasons why they continue to grow in popularity all over the UK. The 6 benefits that you can enjoy from small loans include:
- Quick processing time – If you want a credit transaction that can be completed in no more than an hour, then small loans are what you need. Lenders providing the loans rely on advance software and technology that automate the entire application process making it a whole lot faster and easier in your part. If you apply for a small loan from an online lender, you can generally have the money that you applied for transferred to your bank account in a day or two.
- Ideal solutions to emergency situations – There are a few loans that are quick and convenient enough to become the perfect solutions to different emergency situations and financial shortages and small loans are one of them. As a matter of fact, the loans are designed mainly for emergency funding that’s why lenders have designed them to be as instant, seamless, and accessible as possible.
- Lenient Requirements – It’s very easy to qualify for small loans. In fact, you don’t have to possess a stellar credit rating to get approved. Lenders providing the loans are not concerned about your credit history but on your ability to afford the loan and its repayments. This means that being employed or enjoying a stable source of income is more important than your current credit score.
- Unsecured forms of financing – Small loans are unsecured forms of credit which means that you don’t have to present any valuable asset as collateral to secure them. This relieves you from the anxiety of losing a prized asset in the event that you find it hard to keep up with your repayments due to some valid reason.
- Credit Score is not important – As mentioned in reason #3, there is no need to have a good credit rating to become approved for a small loan. Whether you have good credit, bad credit, or don’t have a credit history, you can still enjoy reliable funding as long as you meet the basic requirements. This is part of the reason why many borrowers in the UK are no longer relying on traditional loans from banks and credit unions for emergency funding. After all, why would they waste their time and energy on hectic traditional loans that will only reject their funding request because of their credit inadequacies?
- Convenient Online Applications – If you are looking for credit products that can be accessed anytime of the day, whether its 3 P.M in the afternoon or 3 A.M at dawn, then small loans are options that you can consider. Small loan lenders generally have websites that can cater loan applications 24/7, even in Christmas, New Year, and any other holiday. This allows you to secure the small funding that you need no matter the hour or day.
Small Loans are safe and legit
In the past, there where various small loans that have been the cause of financial woes to different borrowers in the UK. A lot of this had to do with our innate tendency to mismanage debt rather than the loan itself. Today however, the FCA or Financial Conduct Authority – the regulating body in the UK’s lending industry – has made great leaps and changes in its rules and regulations to ensure that a borrower’s interests will always be protected. There are now effective restrictions on the interest rates, payment terms and conditions, and the number of times that a person can revolve a small loan to guarantee that the borrower will not enter a possible spiralling debt. The FCA has also cracked down on numerous scams and loan sharks making small loans a lot safer to obtain in the UK.