12-month loans
Fast decision online loans for all credit types
Do you need extra funds for a larger expense but are having trouble getting approved for traditional loans? We can help.
Apply for a 12-month loan up to £3,000 today. With our quick and easy online application, you’ll get fast decisions from trusted direct lenders catering for all credit types. Once approved, your funds could be with you the same day.
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12-month loans at a glance
| What are they? |
Short-term financing options, typically used for larger expenses and repaid in 12 monthly instalments over a year. |
| Loan amounts |
Loans from £100 to £3,000 available, typically in £100 increments |
| Loan type |
Short-term instalment loans. Unsecured, with no guarantor required. |
| Accessiblity |
Bad credit considered and alternative incomes accepted, including benefits, pensions and self-employment. |
| Loan providers |
Direct lenders specialising in accessible short-term loans. |
How do 12-month loans differ from traditional payday loans?
12-month loans are intended for longer-term borrowing, in contrast to short-term payday loans. Unlike payday loans, which typically require full repayment within weeks, 12-month loans allow you to spread the cost over a year in regular instalments, allowing for more manageable monthly repayments.
How It Works
The hassle-free way to apply for a short-term loan
We do the legwork, so you don't have to. Find your perfect 12-month loan with Instant Lolly in minutes!
Applying for a 12-month loan: 3 easy steps
Apply online (It's easy!)
No paperwork, meetings, or hold music. Just fill out our quick online application.
Get a fast decision (Minutes)
We'll send your info to lenders and get you a decision in just a few minutes.
Review & decide (You're in control)
If approved, we'll show you the offer details on a secure lender's page. Take your time to review everything. If it's a good fit, sign electronically.
Get your personalised quote in under 10 minutes
- Supercharge your loan search
- See your rate & costs upfront
- Keep your credit score safe
Get a Quote
It's fast, free and won't affect your credit score‡
Eligibility criteria
To apply you must:
- Be at least 18 and a permanent UK resident.
- Have a regular monthly income of at least £500.
You will also need a:
- Mobile phone and email address.
- UK bank account with a debit card.
Privacy assured: We will never use, sell or share your information for marketing purposes. ICO registration: Z3495700.
Costs
How much will a 12-month loan cost?
The cost of a 12-month short-term loan depends on the lender, your credit score, and the amount you borrow.
While 12-month loans typically offer lower interest rates compared to very short-term loans, keep in mind that rates can still vary significantly — by well over 100% — between lenders, so comparing offers is crucial.
A rate difference of 100% could add an extra £350 interest to a £500 loan over 12 months.
Find the best deal with Instant Lolly
Save smart on your 12-month loan! Instant Lolly helps you shop around and compare for the best deal.
- Discover your perfect fit: We search offers from multiple lenders to find a 12-month loan with a competitive APR that suits your needs and financial situation.
- See your actual rate: You'll get a personalised rate based on your unique situation — so no guesswork or nasty surprises.
- Compare & save: Applying with Instant Lolly uses soft credit checks, so your credit score stays safe and you're always free to shop around further and compare.
Repayment
12-month loan repayment terms
Most short-term loans are paid back in equal monthly instalments. Your lender will take care of collecting the payments directly from your bank on the scheduled dates. Just remember to maintain enough funds in your account on those days and you’ll be all set.
Responsible Borrowing: Only borrow what you absolutely need and can realistically repay on time. 12-month loans aren't a solution for short-term cash flow problems. Consider free financial advice services if you're struggling with debt.
FAQs
12-month loan FAQs
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Yes, lenders often offer higher amounts for 12-month loans because the longer repayment period makes monthly repayments on larger loans more affordable. While you might be limited to smaller amounts like £500 for a 3-month loan, 12-month loans may allow you to borrow larger sums, sometimes up to £3,000 or more, depending on your circumstances. However, always ensure you're borrowing an amount you can comfortably repay.
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Typically, 12-month loans have lower interest rates compared to shorter loans. This is especially the case for high-cost, short-term credit, where total cost caps (which limit the total amount of interest and fees a borrower can be charged) are even more effective in reducing rates for longer-term (6 to 12-month) loans. However, it's important to note that you might still pay more interest over 12 months due to the longer borrowing period.
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A 12-month loan can positively impact your credit score if you repay it on time. Consistently making payments over the full period shows your ability to manage longer-term credit responsibly. Credit reference agencies view borrowers with a strong track record of timely payments favourably, however, missed or late payments can negatively affect your credit score.
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Most lenders that offer 12-month loans allow early repayment, however, their policies may differ. Some may charge an early repayment fee, while others might not impose any fees at all. Even if there is a fee, paying off the loan early could save you money overall. It’s important to review the lender's early repayment terms before signing your loan agreement. Any fees should typically be clearly outlined in the loan terms.
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Direct lenders offering 12-month loans typically have more flexible lending criteria than traditional banks. They specialise in helping people with poor credit or who've been declined elsewhere, focusing on your current income and ability to repay rather than just your credit score. While approval isn't guaranteed, your chances are often better with direct lenders, though interest rates may be higher to reflect the lending risk.
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When assessing benefit recipients for 12-month loans, lenders focus on long-term income stability. While benefits provide regular income, lenders must be confident that your benefits will continue throughout the loan term. Some benefits, like Universal Credit or disability benefits, may be viewed more favourably for 12-month loans as they represent stable, long-term income. In contrast, temporary benefits might make it harder to qualify for longer-term loans.