Borrow up to £2000 for up to 24 months
Instalment loans are an evolution of payday loans. They recognise that people may only want to borrow a small sum of money, but need a little longer than their next pay day to repay it. Using an instalment loan should allow you to avoid the typical risks associated with payday loans, the most pressing of which is that of rolling over payments so incurring extra fees and interest.
By the standards of unsecured loans instalment loans are a relatively expensive way to borrow.
So please consider how much you really need to borrow and for how long. It could make sense to explore other options.
You can use our Find Loan tool to see what other forms of credit may be available to you.
- Loan Amount £400
- Loan Term 4 mnths
- Interest £265.48
- Total Repayment £665.48
- Representative APR 1270% (fxd)
Instalment Loans: Summary
- Borrow up to £2000. The maximum loan amount depends on the lender and the “trust” the borrower has built up with them.
- Repay over your choice of period (maximum 2 years)
- Repay early to reduce your interest charges
TYPES OF INSTALMENT LOANS
Consider an instalment loan if you want to borrow up to £2000 and repay it over a number of months. It could be a better alternative to a payday loan.
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.
Instalment Loan FAQs
As you might imagine the term “instalment” describes that 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 do have access to lenders who offer shorter and longer repayment periods. We’re sure you would find a lender who would suit your needs.
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.
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.
As we don’t know your financial objectives or your personal circumstances we cannot tell 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 direct. How you choose to proceed is up to you!
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.
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.