- Short Term Loans
- Borrow £100 to £2000
- Repay over 2 to 24 months
- Compare all major lenders
- Payouts within 24 hours
- All credit ratings
What are Instalment Loans?
Instalment loans are small, short term, unsecured loans. You borrow a relatively small amount and then repay in instalments over a number of months.
They are designed to help you balance your budget but you need to repay them as fast as you can as the APRs are relatively high. If you need to borrow for much more than 12 months then it may make sense to use a personal loan, or even a guarantor loan if you have credit problems.
Compare Instalment Loans & Short Term Lenders
We work with a number of instalment loan lenders. We have detailed pages on each of them, but it is useful to summarise their offerings side by side for easier comparison. If you need more information about any one of them simply click on their logo to go to their lender page. You can choose to apply directly to a given lender from this table or via their page or…
The table is ordered on the basis of the shortest loan term available from a lender, and then the lowest representative APR% if two lenders have the same shortest term.
|Lender more info? click logo||Loan (£) (min/max)||Repayment Period (min/max)||Rep APR%||Key points of difference|
|100 – 1,750||3 – 12 months||1421%|| |
Weekly/fortnightly payment options
Loan top-ups available
Same day payout
The “Lift Loan”: £2k – £5k over 24 months.
|50 – 1,500||6 months||1333%|| |
Loan paid out in 90 secs
No fees for early payments
|300 – 3,000||8 – 24 months||341.7%|| |
Payouts possible within 1 hour of acceptance
Conduct soft search first
|1,000 – 5,000||12 – 24 months||99.9%|| |
Rates range from 35.9% to 99.9% APR fixed
Source: lender websites February 2021
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How to Get a Short Term Instalment Loan
There are numerous short term credit lenders available to you offering a wide range of instalment loans. We compare them below. You decide who to apply to, and in fact, if you want to apply to more than one. If you do we’re able to help you to apply to multiple lenders at the same time.
1: Decide what you need?
Look at your household budget and decide the amount you need to borrow to see you through. Then decide how much you can afford to repay each instalment.
3: Finalise the Loan
The lender will assess your circumstances and conduct an affordability check. Hopefully your application will be approved.
4: Receive Your Money
All lenders are capable of paying out your loan the same day they approve your application. It will be sent to your bank account.
How Instalment Loans Work
Instalment loans are about bridging the money gap – that gap that occasionally appears when your income just won’t quite stretch far enough to cover all your expenses. As repayment periods are varied you should be able to find one of the right length – a period long enough for you to get back in control of your household budget.
- Lending decisions are typically swift, and many lenders are now able to take advantage of Open Banking (what is this?)
- Lenders are obliged to conduct affordability checks, and Open Banking helps them do this too
- Lenders offer flexible repayment terms – you can choose how fast you repay your loan
- All lenders abide by responsible short-term lending policies
- No guarantors are required
- You don’t need a perfect credit history
- You don’t need to own your home
- You should not use loans like this to manage existing debt
ALTERNATIVES TO INSTALMENT LOANS
If the type of unsecured credit you need doesn’t fit with the typical short term loans listed above then consider these alternatives. They are all unsecured meaning you don’t have to provide any asset as security.
Open banking is a Government-backed initiative that gives you control over your banking information. This means you can choose to permit third-party services, such as banking or budgeting apps, to see your data in such a way that it helps you manage your money more effectively. Since this legislation came into force at the start of 2018 there has been a flowering of new money management businesses.
This initiative and the development of new technologies has meant also that credit providers can, with your express permission, use your banking data to make lending decisions. As you can imagine this can make for a very swift process. Some of our short term lenders use open banking but would ask your permission first before accessing your bank records. It’s worth emphasising that lenders can only read the information – they cannot write anything to your bank records and they cannot touch your money. You can also opt not to participate in open banking.
Instalment Loans Guide
If you’re uncertain which type of credit might suit you or you have a money problem then one of guides may help you. We summarise each type of loan and their pros and cons, and address issues regarding debt and credit ratings.
Got a Question about Instalment Loans?
Answers to Common Questions
As you might imagine the term “instalment” describes the fact that these loans are repaid in chunks each month over a pre-agreed time period.
These loans would typically be borrowed for between 6 to 12 months although we have lenders who offer shorter and longer repayment periods. We’re sure you would find a lender who would suit your needs.
Whereas a personal loan is likely to be repaid over 3 to 5 years (and maybe longer) a short term loan is likely to be for a smaller amount of money (say £1000 to £2000 maximum) and repaid within 12 to 24 months and possibly in as little as 3 months. All our instalment loans are repaid within 24 months and this makes them short term loans.
The primary reason you might want to consider using an instalment loan is that you need a relatively small cash loan but want to repay it over a longer time period. If you’ve ever used a payday loan you’ll be aware how stressful it can be knowing you need to repay the entire sum on your next payday.
To avoid this an instalment loan allows you to spread the repayments but without doing it over an unnecessarily long period. In fact, you can choose the repayment period that suits you.
With an overdraft, your bank provides a means to access credit as you need it up to a pre-agreed limit. You pay interest while you’re using it but hopefully, that is not regularly. A revolving line of credit is not dissimilar to an overdraft except that it provided by a third party and not your bank. Both of these options are likely to be expensive and are best avoided if you need credit for an extended period. A short term loan is a better option where you know you might need credit on an ongoing basis for a period of months.
As we don’t know your financial objectives or your personal circumstances we cannot tell you if a short term loan is right for you.
Use our Find Loan tool to explore other alternatives. Answer 4 quick questions to get a summary of the types of loan that may suit you. Then you can dig deeper within our website to make that decision.
We aren’t a lender ourselves, but have technology that gives us access to a wide range of reputable instalment loan lenders. If you apply using our quick enquiry form you will get an instant lender response that will allow you to complete your loan application online.
Alternatively, you can discover more about specific lenders that we work with. Compare them and then apply to them directly. How you choose to proceed is up to you!
A number of lenders, such as Peachy, Sunny, Satsuma Loans, Pounds to Pocket and Ladder Loans no longer exist. But one glance at our lender comparison table shows that there are plenty of lenders you can approach. Take a longer look and decide which lenders look like the right choice. You can then apply directly to those that interest you, or you can apply simultaneously to multiple short term lenders.
As you’ll see from the comparison table we have a wide range of lenders. We can’t tell you which is best given your specific needs and your personal circumstances so we recommend you use the table and read the lender pages too to help you decide. After doing this if you’re still not sure that a short term loan is right for you then use our Find a Loan tool to look for other options.
No. Instalment loans have no requirement for the loan amount to be guaranteed by someone you know well or are related to. Sometimes finding a guarantor can be difficult, so an instalment loan can help you avoid this issue.
Yes, in simple terms. As you’re not looking to borrow a large sum it is likely that a lender will be more focused on your income and outgoings. They want to ensure that any borrowing is affordable and that you will be able to make the repayments on time and in full.
What future providers of credit want to see in your credit file is “good repayment behaviour” – that if credit is extended to you that you make repayments on time and in full. An instalment loan can help you do this as will other forms of credit.
It is always good practice to aim to repay a loan early as this helps to reduce the total interest you have to pay on the borrowed amount. In general, lenders will allow you to repay early and will reduce the interest charges accordingly.
We would recommend that you check this aspect of your loan’s terms and conditions before you sign your loan agreement. If necessary also speak to your lender first.
Instalment loans have evolved from payday loans. But there are a couple of key differences between the two:
- Loan values – payday loans are only available up to a maximum of £1000 whereas you can borrow up to £2000 with an instalment loan
- Repayment period – payday loans are designed to be repaid on your next pay day. Instalment loans are repaid over a number of months with some lenders allowing repayment over 12 to 24 months. This can make repayments more manageable but do keep an eye on your total repayment.
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