Small Loans

Small loans can be a simple way to borrow a modest amount of money, usually between £100 and £1,000. They’re often used to cover short-term costs like emergency repairs, urgent bills or other unexpected expenses that crop up when money’s tight.

Whether you need to cover a sudden bill or manage a cash flow gap, small loans offer quick access to funds with straightforward repayment terms.

What Are Small Loans?

Small loans are short-term borrowing options designed to help cover modest, everyday expenses, usually between £100 and £1,000. They’re often used to deal with sudden costs like car repairs, urgent bills or other short-term money worries. Unlike larger personal loans, small loans are repaid over a shorter period, sometimes in just a few weeks or months, depending on the lender and the repayment plan agreed.

How Do Small Loans Work?

Applying for a small loan is usually quick and easy. Most applications are done online, where you’ll need to provide details about your income, expenses, and general financial situation. Lenders assess this information to make sure the loan is affordable. If approved, the money is often paid into your account the same day, or within a few working days.

Flexible Repayment Options

Repayments are usually made in instalments, agreed upfront so you know exactly what to expect. Some lenders offer weekly or monthly repayment plans, depending on what suits your budget best.

Benefits of Small Loans

Small loans are designed to be fast and accessible. Many lenders offer same-day decisions, which can be helpful when you’re dealing with something unexpected. The application process is usually fully online, saving time and making it easier for people to apply from home. They’re also suitable for short-term borrowing, rather than long-term commitments, and some lenders consider applicants with less-than-perfect credit — especially if the loan appears affordable.

Things to Consider

While small loans can be helpful, they often come with higher interest rates compared to traditional credit. It’s important to check the total amount you’ll repay, not just the interest rate. Missing repayments can lead to extra charges and may affect your credit score. Before applying, make sure the loan fits comfortably within your budget. All high-cost, short-term credit products in the UK are regulated by the Financial Conduct Authority (FCA). This includes rules that cap daily interest at 0.8%, limit default fees to £15, and ensure you never pay back more than twice the amount you borrow.

Frequently Asked Questions

How much can I borrow with a small loan?
Small loans usually range from £100 to £1,000, though some lenders may offer more based on your financial circumstances.

How quickly can I get a small loan?
If approved, many lenders can transfer the money the same day, especially if you apply during business hours.

Do I need a good credit score to apply?
Not always. Some lenders focus more on your current affordability than your credit history, though they’ll still carry out credit and affordability checks.

Are small loans regulated?
Yes. All lenders we work with are authorised and regulated by the FCA, which means they must treat borrowers fairly and follow strict rules around interest, fees, and responsible lending.