What is a Small Loan?
There is no universal definition of a small loan, but it typically refers to personal or short-term loans that are smaller than people would typically borrow from a direct lender. Most lenders consider a small loan as an amount in the range of £100 to around £5,000, although this can differ from lender to lender. A small loan is usually a little less of a risk than a larger secured loan as they are typically unsecured, meaning there’s no need for collateral.
The following steps describe exactly how small loans work:
Choose the right small loan for you
Browse through the available deals and select the small loan option with the best rates based on the amount and duration.
Complete your application
Proceed to apply directly with your preferred lender once you’ve read and accepted the terms of your loan.
Get approved for the loan
The lender will crosscheck your records, including your credit score and income, before making a final decision. Once approved, the funds are sent directly into your account.
Make your monthly repayments
Begin repaying the loan in monthly instalments, including interest over a set term, until all outstanding debt is fully cleared.
Get Cash When You Need It Most
Get StartedCan I Get a Small Loan with Bad Credit in the UK?
Yes, you can. There are direct lenders in the UK who specialise in offering small loans to people with bad credit, although how likely you are to be accepted will also depend on how much money you need.
Lenders we work with will review your borrowing history to ascertain if you’ve had issues with loan or credit card repayments in the past. This would normally be reflected in your credit score, with a high credit score typically meaning you’re a reliable borrower and a lower credit score indicating that you may be more at risk to lend to.
When applying for small loans in the UK, there are several factors that you need to keep in mind. These factors will help you know whether you can afford the loan before applying. You need to understand that:
- Interest rates can be high
- Small loans can be more expensive if you have bad credit
- Missing a repayment can attract a penalty fee
- Delaying repayments is likely to further harm your credit score
How Quickly Can I Get a Small Loan?
Most small loans in the UK can be applied for online, making it a quicker and more convenient way to access cash when you need it.
The first step to consider when applying for a small loan is the simplicity of the application process. How quickly you get a small loan approved depends on who your lender is and the criteria involved in determining your eligibility for the loan. We work with lenders who will provide an instant decision on your loan application, and if accepted, the money can arrive in your account within minutes of being approved.
Even if you have a bad credit history, you can still apply for a small loan and get it approved almost immediately, often as fast as the same day. Our partners will aggregate a list of loans and provide you with small loan options that meet your specific needs. This narrows down your choices, enabling you to make a more informed decision and accelerating the time it takes to get the money paid into your account.
We understand the urgency of your small loan request and have developed a system that offers convenience without compromising on reputability. Once you’ve clicked to apply for a small loan and provided the loan amount you want, we will conduct an assessment of your finances and run a credit check. We will then provide a quick decision in principle, and if approved, we will send the agreed funds to your bank account as quickly as we can, often in as little as 60 minutes.
Eligibility for Small Loans
To be eligible to apply for a small loan, you must meet the following criteria first:
- Aged 18 years or over
- Current UK resident
- Receive a regular income
- Have a valid bank account and debit card
Once you have passed all of the above-listed criteria, you can expect to get a favourable response for your small loan application from us. To increase your chances of getting approved for a small loan, ensure that all the information you enter in your application is accurate.
How Do Repayments Work with Small Payday Loans?
Small loan repayments are typically decided by the lender you sign your agreement. Sometimes they are repaid over a short period (short-term loans) and feature higher APRs. Other times, they work the same way as lines of credit or running credit accounts, which allow you to withdraw cash several times up to a set limit.
Small loans and payday loans also share similar goals – to provide a small amount of money as and when you need it. It is important that you always read the terms and conditions carefully when taking out any loan amount and be confident that you can afford the repayments.
Remember, missed or late repayments could see you getting into further financial difficulties, so any loan should be seriously considered before any application is made.
How a Small Loan Could Help
Small loans are available to individuals in the UK aged 18 and over. You can easily apply for a small loan at affordable rates, depending on your loan amount and circumstances - subject to status.
There are several benefits to applying for a small loan. A little loan can help bring your plans to life; if you’re in a position to make all your repayments, a small loan could be the kickstart you need to help get your plans moving. Some of the most common uses of a small loan include:
- helping to pay for unexpected bills
- covering unplanned emergency expenses
- financing a holiday
- raising money to fund an overdue home repair project
- helping to cover moving costs
- consolidating debt to pay off bills
- financing funeral expenses
- undertaking a training program
- funding basic everyday needs
Small loans give you access to money when you need it, and what’s more, you can spread the cost of repayments over a set period.
With a small loan, you are in control of how much you want to borrow and how long you will need to repay your debt. This allows you to pay the loan cost back in set instalments while effectively managing your finances.
How much would you like?
Representative Example: Rates from 43.1% APR to 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £1,200 borrowed for up to 75 days. Total amount repayable is: £1506. Interest charged is 0.34% per day, amounting to £306, annual interest rate of 124% (variable). Representative APR: 49.7% (variable).
FAQs
1. What’s the maximum small loan amount I can borrow?
The maximum small instant loan amount you can borrow depends on your history with us. For new customers, the maximum small loan amount is capped at £800. Once you repay your first loan amount without any issues, we can help you borrow up to £5,000 on your next application.
2. Do I require a credit check for small loans online?
Yes, credit checks will need to be run on you when you apply for a small loan online. Although your credit score will play a part in the decision-making process, several factors will be considered to decide whether you’re eligible for the loan or not.
3. Are small loans guaranteed to be approved?
No, we cannot guarantee the success of any small loan application. Every applicant will have to go through the conventional credit and affordability checks first. Our decision to approve any small loan will be based on your current financial situation and what you can afford to pay.
4. Can I get small loans with a guarantor?
You are not required to provide a guarantor when applying for a small loan through us.