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Installment Loans

Installment loans allow borrowers to repay borrowed funds in fixed, scheduled payments over an agreed period. These loans are ideal for individuals who need financial assistance and prefer predictable repayment terms. Loan amounts and repayment durations vary, making them suitable for a wide range of borrowing needs, from small emergencies to larger purchases.

How much would you like to borrow?
Representative 79.9% APR Rates from 12.9% APR to 1721% APR. The minimum Loan Term is 1 month. The maximum Loan Term is 36 months. Representative Example: £1,000 borrowed for 18 months. Repayment of 17 Months at £87.22 and final repayment of £87.70 The total amount repayable is £1570.44. Interest amounts to £570.44, an annual interest rate of 59.97%.

What Are Installment Loans?

An installment loan provides a lump sum of money that the borrower repays through fixed monthly or weekly payments. The loan amount, interest rate, and repayment term are determined upfront, giving borrowers a clear understanding of their financial obligations.

How Do Installment Loans Work?

  1. Application: Borrowers apply online or in person, providing details about their financial situation.
  2. Approval: Lenders evaluate creditworthiness and affordability. Some lenders may perform a soft credit check that doesn’t impact your credit score.
  3. Funding: Upon approval, the funds are transferred to the borrower’s account.
  4. Repayment: Borrowers repay the loan in regular installments, typically over several months or years.

Benefits of Installment Loans

Predictable Payments

Fixed repayment amounts make budgeting easier and help borrowers plan their finances effectively.

Flexible Loan Amounts

Loan amounts can range from a few hundred pounds to several thousand, depending on the lender and borrower’s eligibility.

Longer Repayment Terms

Repayment periods can extend from a few months to several years, offering more flexibility than short-term loans.

Credit Building Opportunity

Timely repayments can improve your credit score, making installment loans a valuable option for rebuilding credit.

Things to Consider

Interest Rates

Interest rates can vary depending on the borrower’s credit profile and the loan term. Longer repayment terms may result in higher overall interest costs.

Affordability

Ensure the monthly installments fit within your budget to avoid missed payments and additional charges.

Types of Installment Loans

  1. Personal Loans: Unsecured loans for various purposes, such as home improvements or debt consolidation.
  2. Car Loans: Secured loans specifically for purchasing a vehicle.
  3. Bad Credit Installment Loans: Designed for individuals with poor credit, focusing on affordability.

Frequently Asked Questions

How much can I borrow with an instalment loan?

Loan amounts typically range from £500 to £25,000, depending on the lender and your financial circumstances.

How long are the repayment terms for installment loans?

Repayment terms can range from 3 months to 7 years, depending on the loan type and amount.

Can I get an installment loan with bad credit?

Yes, many lenders offer installment loans for individuals with bad credit, though interest rates may be higher.

Are installment loans regulated in the UK?

Yes, all installment loan providers must be authorised by the Financial Conduct Authority (FCA), ensuring fair and transparent practices.