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Installment Loans

Instalment loans allow you to borrow money and repay it through fixed, scheduled payments over an agreed period. This structure can appeal to people who want the reassurance of knowing exactly how much they will repay and when. Loan amounts and repayment terms vary between lenders, which means they can be used for anything from smaller unexpected expenses to larger planned purchases.

At Dot Dot Loans, we do not lend money ourselves. We act as a credit broker and work with lenders authorised by the Financial Conduct Authority to help you find loan options that may suit your circumstances.

How much would you like to borrow?
Representative 79.5% Rates from 48.1% APR to 1721% APR. The minimum Loan Term is 3 months. The maximum Loan Term is 36 months. Representative Example: £1,000 borrowed for 18 months. Monthly Repayment of £89.22. The total amount repayable is £1605.96. Interest amounts to £570.44, an annual interest rate of 59.97% (fixed) Representative APR: 79.5% (variable). *Subject to lender approval. Cash within 60 minutes is possible, depending on whether your bank supports Faster Payments. Otherwise, funds may take 24–48 hours to arrive.

What are instalment loans

An instalment loan is a form of borrowing where you receive a lump sum and repay it through fixed weekly or monthly payments. The amount you borrow, the interest rate and the repayment period are all agreed at the start, helping you understand your commitments from the outset.

How instalment loans work

You begin by completing an application, either online or in person, providing details about your income, expenses and financial situation. The lender then reviews this information to decide whether the loan is affordable and suitable. This assessment may include a credit check.

If approved, the money is paid directly into your bank account. You then repay the loan in regular instalments over the agreed term, which can range from a few months to several years depending on the lender and your circumstances.

Instalment Loans

Benefits of instalment loans

One of the main advantages of an instalment loan is the certainty it offers. Because repayments are fixed, you know exactly how much you will pay each week or month, which can make budgeting simpler.

Loan amounts can vary from a few hundred pounds to several thousand, depending on the lender and your eligibility. Repayment periods are often longer than short term loans, ranging from a few months to several years, giving you more flexibility over how you spread the cost.

For some borrowers, keeping up with repayments on time can also help build a stronger credit profile, which may improve access to future borrowing.

Things to consider

Interest rates can vary depending on your credit history, the length of the loan and the lender’s criteria. While spreading payments over a longer period can reduce the size of each instalment, it may increase the total interest paid overall.

Before applying, it is important to make sure the repayments fit comfortably within your budget. Missing payments can lead to additional charges and may affect your credit record.

Types of instalment loans

Instalment loans come in different forms. Personal loans are unsecured and can be used for a range of purposes, such as home improvements or consolidating existing debts.

Car finance is typically secured against the vehicle, which means the lender may repossess the car if repayments are not made.

There are also instalment loans aimed at people with poor credit. These are designed to focus more on affordability, although they often come with higher interest rates to reflect the additional risk for lenders.

Frequently Asked Questions

How much can I borrow with an instalment loan?

Loan amounts usually range from £500 to £25,000, depending on the lender and what they assess as affordable based on your financial circumstances.

How long are the repayment terms for installment loans?

Repayment terms can range from three months to seven years, depending on the type of loan and the amount borrowed.

Can I get an installment loan with bad credit?

Yes, many lenders are willing to offer instalment loans to people with bad credit, although the interest rates are usually higher to reflect the additional risk.

Are installment loans regulated in the UK?

Yes, any company offering instalment loans in the UK must be authorised by the Financial Conduct Authority, which helps ensure lending is carried out fairly and that terms and costs are clear and transparent for borrowers.