Small Loans – you do not always need thousands of pounds to sort out financial problems. Sometimes a tiny loan that is paid out the same day is what is needed.
Need a small loan? You’re not alone. Millions of people in the United Kingdom take out small loans each year to cover unexpected expenses or consolidate debt. If you’re considering a small loan, here’s what you need to know.
A small loan is a loan that typically ranges from £500 to £2,000. Small loans are unsecured, which means they’re not backed by an asset such as a car or house. They also have shorter repayment terms than other types of loans, such as mortgages and personal loans.
One of the main reasons people take out small loans is to cover unexpected expenses. This could include anything from car repairs to medical bills. Small loans can also be used to consolidate debt. This means you’ll have one monthly payment instead of multiple payments with different interest rates and terms.
If you’re considering a small loan, make sure you compare your options before you apply. There are a number of things you should look at, including the interest rate, fees, repayment term and lending criteria. You can use our comparison table to see what’s available from a range of lenders.
How to Apply For a Small Loan in the UK
Small loans are available to UK residents aged 18 and over. They are a great way to get a quick cash injection when unexpected bills come through. There are many benefits of taking out a small loan, including the ability to spread the payments over a longer period of time.
The smallest amount that can be borrowed is usually limited to around £100, but it is possible to borrow up to £5,000. A good rule of thumb is to borrow less than the amount that you can comfortably afford to pay back in full. You should also make sure you understand the terms and conditions. If you fail to do so, you could end up paying more in interest than you borrowed.
Depending on your lender, the repayments may be deducted automatically from your account every month after you take out the loan. While the loan might be small, the interest that you pay is often much larger. However, if you have good credit, you might be able to get a better rate than someone with bad credit.
To find the best loan for your needs, you can apply through a broker or directly from a lender. There are many online comparison sites that can help you narrow your choices and ensure you are getting the best deal. Some lenders even offer a streamlined application process.
It is important to read and understand the fine print when taking out a small loan, particularly when the fees and interest rates are concerned. This will ensure that you are not wasting time on a lender that doesn’t meet your needs. For instance, some lenders may only be offering the largest loan amounts. Others might have a more streamlined application process but charge you an exorbitant amount of money for the privilege.
The quickest and most efficient way to receive a small loan is to apply online. Most online lenders allow you to apply for a small loan in minutes. After approval, your loan can be in your account within 10 minutes. In addition, most loans are repaid in three to twelve months. Alternatively, you can choose to repay the loan in one lump sum.
It is also worth looking at other loan options, such as a low interest overdraft or borrowing from friends and family. If you are struggling with high interest overdrafts, it might be a good idea to check out what your bank or building society can offer you. Using the services of a debt management company can also be a viable option.
Getting a small loan in the UK is easy. As long as you have an income, you should be able to qualify for a loan. Whether you need extra money to pay a holiday or emergency repair, or simply want a small lump sum to help with an investment or to help pay off your credit card, a loan might be a wise choice.
Even if you have bad credit, you can still obtain a loan small. Most lenders will require you to have a UK bank account, proof of employment, and be at least 18 years old.