How Can Loanable find me a Short Term Loan?
We have a single, straight-forward application process that takes only minutes to complete
Our specialised technology provides real time access to the most appropriate short-term lenders
We only work with responsible lenders who are regulated and complete full affordability checks
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What is a Short Term Loan?
A short-term loan is a loan that is taken over a short period of time,
typically between 3–24 months.
People often use short term loans as a form of credit when unforeseen circumstances arise,
such as a car breakdown or emergency home repairs. Short term loans are sometimes compared to payday loans.
Short term loans differ in that they are paid back in instalments over a number of months with the interest on the loan spread out evenly across the repayment term.
Payday loans, however, are typically paid back in a lump sum within a month.
Short term loans are almost always unsecured which means that the borrower does not provide any assets as security.
Because they are unsecured, short term loans have a high APR and are expensive. It is advisable to explore and consider all options before taking out any form of short-term credit.
FAQs about Short Term Loans
What is a Short-Term Loan?
A short-term loan is a loan that is taken over a short period – typically between 3–24 months – and paid back in equal amounts in a set amount of instalments.
How Much Can I Borrow?
You can borrow between £100 – £3,500.
How do I know If I’m Eligible?
To be eligible you must be a UK resident between the ages of 18 – 75, have a regular income and a valid bank account in the UK with an associated debit card. You will also need to have a mobile number or email address we can reach you on.
I meet all of the criteria to be Eligible. Does that mean I can rely on being approved?
No, it doesn’t. Lenders will consider several, varying factors beyond the basic criteria so there is no way of knowing if you will be approved. The most important thing is that you can prove to a lender that you can afford the loan.
The lender will look to see proof that after all your monthly outgoings, including creditor commitments, you have enough disposable income to service the loan. This will markedly increase your chances of being approved but will still not guarantee it.
Do I have to offer any Security for the Loan?
No. Short-term loans are unsecured, meaning that you do not have offer the lender any assets or security to get the funds.
Why Are Short Term Loans so expensive?
As they are totally unsecured and often provided to people with a poor credit file, lenders can experience high default rates. To compensate for this and allow the lenders to keep providing loans, they charge a high APR.
I have Poor Credit History. Can I still apply?
Even if you have a history of credit problems you can still apply for a short-term loan. Lenders understand that many of their applicants have less than perfect credit files and will still consider your application. One of the most important factors for lenders is whether the loan is affordable to you based on your circumstances which means they will consider how much money you have spare each month after your compulsory outgoings.
Will Applying for A Short-Term Loan affect My Credit Rating?
Credit rating agencies do use loan applications – and the frequency of applications – as a factor when determining an individual’s credit score. This is only one of many factors used to determine a credit score, though.
In addition, some lending companies will only do a ‘soft search’ on an applicant which won’t leave any footprint on your credit file. There is, however, an ultimate risk which is beyond an applicant’s control that your credit file could be adversely effected when applying for a short – term loan.
What happens If I cannot pay back my Short-Term Loan?
If for whatever reason you cannot payback your loan, you should inform the lender as soon as possible that you are experiencing financial difficulty. It’s better that you are open and honest about your financial problems as lenders will try and work with you. If you ignore your problems, then the situation will escalate and lenders can pursue you for the debt. This can adversely affect your credit file and cause financial hardship. It can also lead to third parties pursuing the debt, to escalating fees and to CCJ’S against you. Therefore, it is always very important to think carefully before taking on any kind of short-term debt.
Will Loanable charge me a Fee if I use you to find a Loan?
No. We do not charge any application fees, search fees or other fees.
If I receive a Loan, can I use the Money for anything?
At loanable we would only encourage seeking a loan for sensible expenditure, but lenders are unlikely to place any restrictions on how the money is spent.
Is a Short-Term Loan the same as a Payday Loan?
No. When people think of short-term loans they do often think they’re the same as payday loans. However, it’s important to understand that regulatory pressure has effectively brought to a close the payday loan industry in the UK. Consequently, we don’t pass on your application to any payday lenders.
Payday loans were usually taken for a very short period time, typically around 30 days, and then repaid in full as a lump sum. A short term loan enables you to repay the amount owed in instalments over a minimum period of 3 months.
What is APR ? It seems relevant to every Loan in the Market Place.
APR stands for Annual Percentage Rate. This basically tells you the cost of a loan over the course of an entire year and it is applied on top of the capital amount of the loan. APR is useful tool in choosing between different loans as it helps you compare the annual cost of a loan.
I’ve read that if I receive a Loan, Lenders will require “Continuous Payment Authority”. What is this?
Continuous Payment Authority(CPA) means that upon signing a loan agreement, you consent to the lender automatically being authorised to debit the agreed amount from your account each month(or in some instances fortnightly or less, depending on your agreement) The lender will only be entitled to debit from your account the pre – agreed amount at the pre – agreed frequency.
How does Loanable differ from a Lender?
Loanable is a broker which means we don’t directly release loans, but use our market – leading technology to pair you with the best fits from our extensive panel of lenders. A lender can provide loans but they solely represent themselves. This means approaching them on an individual basis can be a hugely time – consuming and labour – intensive process. Loanable brings the marketplace together all at once so we can have a number of lenders pitching you loans which can save you a huge amount of time and disappointment.
How do I know if my Application for a Loan stemming from Loanable has been accepted?
You’ll be notified of a decision by phone or by text by the appropriate lender.
Does someone who is Self-Employed / Freelance need to be aware of anything in particular when seeking loans through Loanable?
This will vary depending on the lenders we match you with, but you may need to provide additional, historical bank statements along with proof of address. You must also meet the standard short – term loan criteria of being a UK resident aged between 18 – 75 who has a valid bank account in the UK with an associated debit card. You may also need to have a mobile number or email address we can reach you on.
As someone on benefits, can you still help me find a Short Term Loan?
We have lenders on our panel who provide short term loans to people on benefits. While there are no guarantees, you will need to prove you are a UK resident, have a UK bank account with an associated debit card and be between the ages of 18 – 75. You can also expect to have to provide a recent benefit statement.
As a Pensioner, can you help match me with a Lender?
Yes, we can help match pensioners with lenders. In addition to the standard criteria set out above, prospective lenders will require a copy / picture of your pension statement.
I’m in the Armed Forces, can you help find me a Short Term Loan?
Yes, we can. But in addition to meeting the standard set of criteria set out above, you may need to provide a payslip / picture of a payslip. As always, the lender may reserve the right to request additional information.
What are the types of Additional Information the Lender might ask me to provide?
These could include proof of address, a valid passport, a photo driving licence or proof you are on the electoral register. Depending on the Lender, they may accept or expect other forms of information as well.
Will my Credit always be checked?
A high percentage of our panel of lenders will always run credit checks on our customers to help with fraud prevention and to help assess the affordability of the loan for the customer. This can leave a footprint on your credit file, so it is better to assume your credit rating will be checked.
Can non-UK residents apply to Loanable?
No. Unfortunately not.
How much will a Loan cost me?
This varies from lender to lender and obviously varies depending on how much you borrow and for how long. It’s extremely advisable to compare the APR on different loans which is basically the interest you will have to pay back on top of the sum you are borrowing.
How quickly will I receive my Loan?
Depending on the lender, and how responsive you are with them, you can have your money in a matter within 24 hours. However, it’s worth being realistic and accepting it could be a matter of days.
I was unable to get a Loan through a Company offering similar services to Loanable. Should I still apply to you?
Since we may well be working with different lenders on our panel, then applying through us is definitely something you should consider. However, you should feel confident you’ll be able to meet re – payments and you should be aware that additional applications can leave footprints on your credit file.
I already have one active Loan, achieved through Loanable. Can I use you to apply for another?
While it is possible for us to source you an additional loan, we would urge you to consider its affordability – and the cost and credit rating implications of defaulting on loan repayments. You ought to be extremely confident, therefore, that the additional repayments are manageable.
Can you find me a short term loan on a bank holiday weekend?
At Loanable, we don’t work with pay day loan companies who would typically provide loans at such times. There are still Lenders who provide loans over such periods but a lot will depend on the payment arrangement system of the lender and of your nominated bank.
If Loanable source me a Short Term Loan what will my repayment options be?
Your lender will typically require the monthly repayment of a set amount on a corresponding date of each month.
I’ve been offered several Loans through Loanable. They all require a Debit Card Authorisation. Please can you explain what it means?
It’s best if you think of it as a cheque the Lender presents to your bank to repay the required amount on a specific date of each month. Providing you have sufficient funds, the re – payment amount will be released without requiring any involvement from you.
If I sign a Loan Agreement sourced through Loanable, can I change the date of my Monthly Repayments?
Many of our panel of Lenders will enable you to do this. However, we at Loanable cannot guarantee it, so you will need to be in contact with the lender directly.
What happens if I Default on a Loan Repayment?
Firstly, Loanable strongly advise you never to seek us to match you to a lender if you’re not confident you can meet repayments. If you do default on a payment, the lender may seek to process the due amount multiple times. You may incur bank and interest charges, adversely affect your credit rating and the loan may be passed on to a 3rd party collection agent who may pursue you for the full amount. This may lead to a CCJ against you which is why it is imperative to borrow responsibly.
What happens if I can’t make a Payment?
If you feel you won’t be able to make a payment, you should contact your lender as soon as possible. It’s possible they may be able to arrange a deferral, although this may incur a fee. It’s also important to remember that missing payments can make it more difficult and/or expensive to obtain credit in future. It can also adversely affect your credit rating and it’s possible legal proceedings can be issued against the recipient of the loan by the lender in pursuit of outstanding monies and additional fees.
Can I cancel my Bank’s authority to release Monthly Payments to the Lender even if there’s still an Outstanding Balance?
In theory, yes. Although we would strongly advise against this as it won’t mean the outstanding amount simply disappears. Your lender and their partners can still pursue you for the outstanding amount and you could face CCJ’S as well as additional costs. If you’re facing difficulties, the most important thing to do is be upfront and honest with the Lender as you may be able to work toward a solution together.
I’m worried about my Repayments and my Finances in general. Who can I contact?
There are various national debt specialists who can provide advice such as:
National Debt Advice – 0800 802 1435
National Debtline – 0808 808 4000
Can I “top up” an existing Short Term Loan I acquired through Loanable?
You would have to ultimately contact your Lender about this. There are some lenders who will allow you to do so, although there are no hard and fast rules. The Lender will look to factors such as how much of your existing loan you have paid off and how timely you have been in making repayments. The lender may also consider your historical loan track record – with themselves and other lenders – as well as referring to other aspects of your credit file.
Can I repay my Loan early?
In most cases, lenders will allow you to pay back your loan early.
Does early Repayment cost me more?
Many lenders will allow you to repay your loan early without processing fees or early settlement fees. However, it is important to remember that this is not invariably the case.
Once I have paid off my Short Term Loan, can Loanable help me find another - and if so how soon?
At loanable, we advise our customers against a “rolling cycle” of short term loans. However, once the final payment of an existing loan has cleared, we can help match you with Lenders.
Is my information with Loanable secure?