A small loan usually means borrowing a modest amount, often between £100 and £1,000, to cover a one off cost. You can still spread it over a term that keeps the monthly repayment comfortable.
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What a small loan can help with
Small loans tend to be used for short term, everyday costs rather than large purchases. It is still worth checking the total cost and only borrowing what you need.
- An unexpected bill or an insurance excess
- A car repair or a broken appliance
- Bridging a short gap before payday
What a small loan costs
The cost depends on the amount, the rate and the term. A longer term lowers the monthly figure but usually costs more overall. Always look at the total amount repayable before you apply.
Who can apply for a small loan
Lenders set their own criteria, but as a general guide you will usually need to meet a few basic conditions.
- Be a UK resident aged 18 or over
- Have a regular income the lender can verify
- Hold a UK bank account and debit card
- Pass the lender's own affordability and credit checks
Alternatives worth checking first
For a small amount, one of these may cost you less than a short term loan, so they are worth a quick look before you apply.
- An arranged overdraft for a short, small shortfall
- A credit union, which often lends small sums at lower rates
- A Budgeting Advance from the DWP if you receive certain benefits
How to apply
Borrowing responsibly
Before you apply, check the repayments sit comfortably alongside your other commitments. Look at the total amount repayable over the whole term, not just the monthly figure, and only borrow what you genuinely need.
Every lender on our panel is authorised by the Financial Conduct Authority, and high cost short term credit is subject to an FCA total cost cap, meaning you cannot repay more in interest and fees than the amount borrowed. If money is tight, free and impartial help is available from MoneyHelper.
Representative Example: Borrow £1,000 over 18 months. 18 monthly repayments of £89.22. Total amount repayable: £1,605.96. Interest: £605.96. Annual interest rate: 59.97% (fixed). Subject to application approval by the lender. Not all lenders offer loans up to £5,000. Representative APR 79.5% (Variable). Any representative monthly repayment shown is for illustration only, based on our representative APR. Your actual repayments will be confirmed by the matching lender if your application is approved.