Short-term loans

Short-term loans are small personal loans with a relatively short repayment period.

They are very similar to payday loans, but with the convenience of a longer repayment term; meaning they can be repaid over several months in instalments, rather than in one lump sum. Most short-term loan products range between one month and 12 months, but longer terms are also possible.

For many borrowers (particularly those looking to borrow larger amounts of money), short-term loans are more affordable compared to payday loans because the cost can be spread over several smaller, more manageable repayments. Bear in mind, however, the longer the repayment period, the more interest you may pay over the full term of the loan.

Online short-term loans are quick and easy to arrange, which means they can be handy in emergencies; for instance, when the washing machine breaks down and you are given the news that it will cost more to fix it than to buy a new one.

They’re also flexible. Loan amounts start from just £100 and increase in bite-size chunks, so you can borrow just the amount of money you need. You also get to pick your preferred repayment period, with the assurance of fixed regular payments that work for you and your budget.

Of course, with loans of up to £3,000 available over a maximum of 24 months, short loans have infinitely more uses beyond just helping to keep the household laundry spotless — check out the most common ones below.

Lending regulations vary from country to country, so it’s important to understand how you are uniquely protected when taking out a short-term loan in the UK.

The UK regulatory body for financial services firms is the Financial Conduct Authority (the FCA). Anyone that carries out regulated activities in relation to short-term lending (not just direct lenders) must be authorised by the FCA.

Simply put, dealing with a regulated firm means you have certain rights and protections and ensures that you’ll always be treated fairly.

Stay clear of unauthorised parties

Be aware, however, that unauthorised parties are also known to operate illegally online, so always make sure you know who you are dealing with before making a loan application or handing over personal details.

We also recommend that you never engage with anyone who contacts you out of the blue with the offer of a guaranteed loan — especially if it involves paying an upfront fee. That's not something any responsible loan company would do, so it should set alarm bells ringing right away.

At Instant Lolly, we can help with short-term loans for all credit types — so you can still apply with us if you have a poor repayment record or limited credit history.

While our lenders will look at your credit report, they are more concerned that you have adequate means to repay your chosen loan and won't be left struggling financially due to taking on new credit.

Been refused elsewhere?

Different loan companies have different requirements and criteria; so, just because you got turned down before doesn't mean you won’t be able to get a loan from someone else.

Instant Lolly can quickly identify the best short-term loans for bad credit situations and check your eligibility with lenders before you apply, ensuring you have a good chance of acceptance when you do.

Yes, you can, but you must have a suitable source of income that can be used to repay the loan; such as self-employed earnings, a pension or benefits.

Every lender has different acceptance criteria, but Instant Lolly can quickly narrow down the right lenders for your situation. Be aware, however, that lenders have monthly income requirements (typically, at least £350); so, if you are unemployed and only receive basic unemployment benefits you are unlikely to qualify for this type of loan.

Lenders will also check to ensure that your income is sufficient to comfortably cover the cost of loan repayments on top of your existing outgoings. Affordability checks are carried out for your protection, so please ensure you are as accurate as possible when filling out your income and expenses.

Short-term loans are quick — very quick. Once you have completed your online agreement and been approved, the lender will send the money to your bank within 15 minutes.

Funds are sent using a system called Faster Payments. It means that the money is usually available almost immediately.

Be aware, however, that on occasions, the process may take longer depending on when you apply, the lender and your bank.

Ultimately, yes, but there are things you ought to be aware of (read on) — and for the record, short-term loans with no credit check do not exist.

All UK direct lenders are required to make reasonable creditworthiness checks as part of responsible lending practices, and for most, that means a full credit check with a credit reference agency when you apply — even if you're not approved.

However, at Instant Lolly, we check if you’re likely to be accepted before you apply.

A soft search of your credit file provides our lenders with enough information to make a provisional lending decision without leaving a mark on your credit file. So, unless you accept an offer, no credit check will be made and your application won't affect your credit score.

Short-term loans and payday loans are different products but they are very similar.

Payday loans are repaid on your next payday and have a maximum duration of 30 days or so, whereas, short-term loans offer longer terms of up to 12 months or more and are repaid in multiple instalments.

These days, people often use the two terms interchangeably; because, aside from the length of the loan, they offer exactly the same features and benefits.

At Instant Lolly, we've made it simple. You don't have to worry about what type of loan to choose — just tell us how much you would like to borrow and for how long, and leave the rest to us.