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Short Term Loans

Short term loans are designed to provide quick access to funds for a limited period, usually ranging from a few weeks to several months. They are a practical solution for managing unexpected expenses or bridging financial gaps. These loans typically involve smaller amounts and are repaid in instalments or a single lump sum, depending on the lender’s terms.

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 Short Term Loans?

Short term loans are a type of borrowing intended for immediate financial needs rather than long-term commitments. Loan amounts often range from £100 to £5,000, with repayment periods usually lasting up to 12 months.

How Do Short Term Loans Work?

When you apply for a short term loan, the lender assesses your financial situation and determines your eligibility. Upon approval, funds are transferred to your account quickly, often on the same day. You repay the loan according to an agreed schedule, which may involve fixed monthly payments or a single repayment at the end of the term.

Benefits of Short Term Loans

Quick Access to Funds

Short term loans are ideal for emergencies, with many lenders offering same-day approval and funding.

Flexible Loan Amounts

You can borrow small amounts tailored to your specific needs, avoiding the need to take on unnecessary debt.

Clear Repayment Terms

Reputable lenders provide clear terms, including the total repayment amount and schedule, helping you plan your finances effectively.

Accessible for Various Credit Histories

Many lenders consider applications from individuals with poor credit, focusing on affordability rather than just credit scores.

Things to Consider

Higher Interest Rates

Due to their short-term nature, these loans often come with higher interest rates compared to long-term borrowing. Ensure you understand the total cost of the loan before proceeding.

Repayment Responsibilities

Missing repayments can lead to extra fees and negatively affect your credit score. Always ensure you can comfortably manage repayments within your budget.

When to Use a Short Term Loan

Short term loans can be useful for:

  • Covering unexpected medical or repair bills
  • Managing temporary cash flow gaps
  • Handling urgent expenses when other options are unavailable

Frequently Asked Questions

1. What is the typical repayment period for a short term loan?

Repayment periods usually range from a few weeks to 12 months, depending on the lender and the loan amount.

2. Can I get a short term loan with bad credit?

Yes, many lenders offer short term loans to individuals with bad credit. They assess your ability to repay based on your current financial situation rather than just your credit score.

3. How quickly can I receive funds?

Many lenders offer same-day funding if your application is submitted and approved during working hours.

4. Are short term loans regulated in the UK?

Yes, all UK lenders offering short term loans must be authorised by the Financial Conduct Authority (FCA). This ensures transparency and fair practices.