Small Loans

Get between £100 - £5,000 paid out by

How much would you like to borrow?

  • 100% Online Process

  • Borrow up to £5,000

  • UK Based Lenders

  • Bad Credit Accepted

  • 2 Minute Application

  • Same Day Transfer

  • Rates from 49.9% APR to max 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £250 borrowed for 30 days. Total amount repayable is £310.00. Interest charged is £60.00, annual interest rate of 292% (fixed). Representative 669.35% APR (variable).
    *Subject to application being approved by the lender. Not all lenders are able to provide up to £5000.

    Your Guide to Small Loans

    If you need a little bit of extra cash to get you through until your next payday, that doesn’t mean you want to borrow thousands of pounds from a bank or credit union.

    You don’t necessarily want to risk your credit score either, by tapping into an overdraft or maxing out all of your credit cards. In this case, the best option is to look for payday loans that you can access easily and pay back fast.

    Although personal loans are available for smaller chunks of cash, more often than not, the less you borrow, the more interest you’ll need to pay. On the other hand, if you consider a payday loan, your interest rates will be capped by the FCA, and you won’t have to worry about excessive late fees if anything goes wrong.

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    Let’s take a look at the facts about small loans.

    What are They?

    They are usually short-term loans that give you a small amount of cash, usually under the value of £1,000. A common amount for a small loan is around £500. However, the amount that you will be able to access will depend on things like your credit rating, the lender you choose, and more.

    Usually, these loans are designed for people who need cash in an emergency. After all, in most cases, if you wanted a little extra money to pay for a new outfit or a new pair of shoes, you would just wait for your next payday. However, if you need cash to replace the split tyre on your car, then you’ll need to find that money a lot faster.

    If you have an unexpected expense to handle, and you don’t have the emergency funds or savings available to pay for whatever you need, small loans are an ideal solution. They can settle everything from unexpected dental bills, to urgent home repairs and more. Some people even turn to small loans so that they can deal with funeral expenses.

    The great thing about most payday loan providers, is that they won’t ask you to justify the reason for your cash advance. Instead, they will simply allow you to borrow the amount that you need, often without question.

    How Do they Work?

    Most of the small loans available throughout the UK today can be accessed online. You’ll be able to fill out a series of forms on a company’s website within a matter of minutes. Most of these companies won’t ask you too many personal questions, but they will need information about where you live, how old you are, and what kind of income you get each month.

    You’ll need to be over the age of 18 to apply – as with all loans, and you also need to be a resident of the United Kingdom.

    The application process is usually very simple and shouldn’t take long to complete. Once you submit your request for a student payday loan, along with information about the amount that you want to borrow, the provider will consider your application. The company you choose will also need to conduct a credit check to ensure that you’re in good standing. If you don’t have a strong credit history, then you may need to look for a small loans provider that deals with people who have bad credit.

    Keep in mind that small loan applications can be rejected if you fail to answer all of the questions that your provider asks in full. It’s also possible for a company to reject your loan if you don’t meet their eligibility criteria. When you’re comparing your options, make sure you pay attention to how difficult it will be for you to be approved with a certain provider.

    How Will They Affect You in the Long Term?

    Usually, when you apply for small loans, you’ll have two options available to you. Either you’ll be able to access a payday loan which you need to pay back the next time you get your monthly income, or you can consider an instalment loan. With instalments, you’ll have longer to pay back the money that you owe. The experience is very similar to taking out any loan, as you will be delivering a portion of the cash that you borrowed back to the provider every week or month.

    How Does Happy Penguin Compare?

    Why Use HP?
    What's the max loan amount?
    Up to £5,000
    No hidden fees.
    Is approval instant?
    Yes, immediate.
    On Screen Decision
    Poor Credit Possible?
    Yes. Bad credit too.
    All considered.
    Same day transfer?
    Within the hour!
    Direct to bank!
    Flexible Repayment Dates?
    Flexible terms.
    Quick and easy.

    However, as with any kind of loan, the longer it takes for you to pay back the money, the more interest you’ll have to pay in the long term. With that in mind, if you want to save as much money as possible, you might want to choose a provider that lets you pay your money back in full.

    When it comes to how these loans affect your credit rating, don’t worry. These cash advances have a similar impact to your credit as any other loan. As long as you pay back the money according to the terms in your agreement, your rating will begin to improve and develop. Paying back loans on time is how you show the credit authorities that you can be trusted.

    The Benefits

    These loans are an excellent choice for consumers who only want to access a small amount of money for a short period of time. If all you want to do is pay off the price of a punctured tyre as quickly as possible, then you don’t need an expensive personal loan to do that.

    Small loans are often much easier to gain approval for than a standard loan. This is because your provider isn’t taking on as much risk as a bank or building society would with a traditional cash advance. Your small loans provider is only giving you a small amount of money for a limited period. That means that they’re not putting themselves under as much pressure.

    The limited risk in a short-term small loan also means that you can get approval for the money that you request within a matter of minutes. Some providers can even agree to get the cash you need into your bank account within an hour of receiving your application.

    What’s more, like any short-term loan or payday advance in the UK today, small loans are fully regulated by the FCA. This means that you should have absolute peace of mind when you’re applying for a loan with an approved lender.

    How to Choose a Provider

    When you’re applying for any kind of loan, including payday and small loans, it’s always a good idea to compare your options. Taking some time to browse through the options on a comparison website will ensure that you’re getting the lowest interest rate and the best deal for your cash advance. You may even be able to cut out some unwanted expenses. A few things to consider when you’re choosing a small loan provider include:

    • Regulatory approval: make sure that any loan provider you choose to work with is regulated by the FCA. Somecompanies will place trust symbols and badges on their website to let you know that they’re secure.
    • Interest rates and fees: Interest rates can appear higher than they are. This is because you’ll be looking at an APR that’s calculated based on what the quick loan might cost you over a year. If you’re paying the money back within a week, then you won’t be paying nearly as much. Remember to check extra fees like transactional costs when you’re checking the affordability.
    • Loan approval rates and eligibility: Check to find out how easy it is for you to apply for and successfully get the money that you need. You don’t want black marks on your credit report because you’ve had to send applications to multiple lenders at the same time. If you have bad credit, try considering a specialist lender.
    • Speed of payments: Find out how quickly your loan provider can get the funds into your bank account. Most lenders will be able to give you the cash you need within 24 hours. Other providers can offer cash in even less time.
    • Repayment options: Make sure that you know in advance whether you’ll be paying the money you owe in instalments, or whether you’ll need to give it back all at once on your next payday.

    Should You Consider A Loan of This Nature?

    If you’re dealing with an unexpected expense this month, and you don’t have time to wait until your next payday to manage it, then a loan might be the ideal solution. While personal loans are often only available for several thousand pounds, small loans are specifically designed to give you the exact amount of cash you need for a short period.

    While small loans aren’t the right option for every lending situation, they’re a great way to save yourself some headaches when it comes to getting a small amount of money in a hurry. Just make sure that you compare your options to get the right deal.

    Warning: Late repayment can cause you serious money problems. For help, go to Happy Penguin is a broker, not a lender, and does not make credit decisions.