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Borrow money for short-term emergencies and repay in fixed monthly instalments. You can gain access to funds by comparing the offers from multiple lenders. Apply for a payday loan only if you are sure about the repayments.
4.8/5
Loans By MAL
Loan Amount
£1000 -
£5000
Loan Term
1 -
2 years
Representative APR
47%
Minimum Age
21 years
Minimum Income
£1300 per month
Representative Example: on an assumed loan amount of £2200 over a 24 month repayment period. Rate of interest 21.4% per annum (fixed). Representative 47% APR. Total amount payable is £3141.60 of which £941.60 is interest, 24 monthly repayments of £130.90.
4.8/5
Norwich Trust
Loan Amount
£4000 -
£20000
Loan Term
1 -
10 years
Representative APR
22.9%
Minimum Age
21 Years
Minimum Income
£2000 per month
Representative Example If you borrow £20000 over 72 months, your representative APR will be 22.90% APR. Your monthly repayments will be £488.36 and the total amount repayable will be £35,161.92.
4.8/5
My Community Finance
Loan Amount
£1500 -
£25000
Loan Term
1 -
5 years
Representative APR
18.85%
Minimum Age
21 years
Minimum Income
£18,000 per annum
Representative example: A loan of £6,000 to repay over 48 months. Representative 18.85% APR. Each month you’ll pay: £173.64. Your total repayment over 48 months will be: £8,3355.00. This includes £2,335.00 interest at 18.85% pa (fixed) and no fees.
Loan Amount
£1000 -
£5000
Loans By MAL
Loan Term
1 -
2 years
4.8/5
Representative APR
47%
Minimum Age
21 years
Representative Example: on an assumed loan amount of £2200 over a 24 month repayment period. Rate of interest 21.4% per annum (fixed). Representative 47% APR. Total amount payable is £3141.60 of which £941.60 is interest, 24 monthly repayments of £130.90.
Loan Amount
£4000 -
£20000
Norwich Trust
Loan Term
1 -
10 years
4.8/5
Representative APR
22.9%
Minimum Age
21 Years
Representative Example If you borrow £20000 over 72 months, your representative APR will be 22.90% APR. Your monthly repayments will be £488.36 and the total amount repayable will be £35,161.92.
Loan Amount
£5000 -
£100000
Evolution Money Loans
Loan Term
1 -
20 years
4.5/5
Representative APR
28.96%
Minimum Age
18 years
Representative Example: Loan Amount: £20950.00, Loan Term: 85 Months, Interest Rate: 23.00% PA Variable. Monthly Repayments: £537.44. Total Amount Repayable: £45,682.15. This example includes a Product Fee of £2,095.00 (10% of the loan amount) and a Lending Fee of £714.00
Loan Amount
£1500 -
£25000
My Community Finance
Loan Term
1 -
5 years
4.8/5
Representative APR
18.85%
Minimum Age
21 years
Representative example: A loan of £6,000 to repay over 48 months. Representative 18.85% APR. Each month you’ll pay: £173.64. Your total repayment over 48 months will be: £8,3355.00. This includes £2,335.00 interest at 18.85% pa (fixed) and no fees.
Loan Amount
£1000 -
£15000
Everyday Loans
Loan Term
1 -
5 years
4.4/5
Representative APR
99.90%
Minimum Age
21 years
Representative Example: Representative APR 99.9% (fixed). Based on a loan of £3,000 over 24 months at an interest of 71.3% p.a. (fixed). Monthly repayments of £237.75. Total amount payable £5,706. Maximum APR: 299%.
A payday loan is a short-term loan designed to help you get by until your next paycheck. These loans may be simple to get, but the interest rates are incredibly high. There may be other options for you to solve your short-term money problem, so consider them before borrowing from a payday lender.
Payday loans are designed to help you with any short-term cash flow problems until your next payday when you will repay the loan in full. However, the definition of payday loans has widened and can now relate to small loans returned in instalments over several months.
These loans typically have extremely high interest rates. Even though they are regulated and interest and fees are limited, payday loans are nevertheless significantly more expensive than other types of borrowing. If you need to borrow money, there are probably better solutions available.
If your payday loan application is approved, the money is deposited straight into your bank account, and you pay it in full at the end of the month, including interest and charges. However, you can now borrow for longer periods of time – typically three months (though lengthier loans are available) – and repay in instalments.
All of these loans have one thing in common: they are high-cost, short-term, and sometimes for little amounts. A payday loan is pricey and may exacerbate your problem if you are unable to repay it on time.
Payday loans are mostly used to bridge the gap between short-term expenses. Generally, these loans help you make ends meet when you have a cash crunch. Whether you want to repay your credit card debt, or you want to get help with your monthly expenses, you can use the money for your financial needs.
A lot of lenders offer these payday loans online or even in their offline stores. One of the most important factors that you need to consider while applying for it is to check if the lender you have chosen to borrow from is authorised by the Financial Conduct Authority (FCA). Dealing with lenders who are not authorised by the FCA may prove to be financially risky for you.
Step-by-Step Guide to Applying for a Payday Loan
You can apply for a payday loan easily online in a few easy steps.
If you do not want to apply for a payday loan, you can apply for short-term loans with LoanTube. Compare multiple quotes from different FCA registered lenders with a single application form. Get real APRs from the lenders to know the actual cost of borrowing and repay the loan in instalments as per your financial horizon.
Required Documents for Payday Loan Applications
Different lenders may ask for a different set of documents when you apply for a payday loan. However, most lenders will ask you to submit documents to prove your identity, age, employment, residential status, source of income, bank statements, and other a few other financial statements to review your loan application.
Eligibility Criteria for Borrowing Payday Loans
To borrow a payday loan in the UK, you must be 18 years of age or above. Some lenders may need the applicant to be 21 years or above. Check the eligibility criteria of the lender before applying to increase the chance of your loan approval. The lender needs to be assured that you are employed as employment shows that you have a regular stream of income, which will be helpful in repaying the loan.
You may also require a guarantor, someone, who can attest to your repayment and will do so if you fail to pay. This is usually required for people with low or no credit history.
A payday loan’s average annual percentage rate (APR) can reach 1,500%, which is much higher than many other types of borrowing. Because the APR tells you how much it costs to borrow over a year, and payday loan terms are frequently smaller than a year, getting a payday loan may not cost as much as the APR suggests.
Remember that interest is computed as a percentage of the loan amount that you borrow and is typically levied daily for payday loans. As a result, the higher your loan amount and the longer you have it, the more interest you will pay.
If you are having difficulty keeping up with your loan payments, you are considered to be in debt. If you have previously missed a payment, and you do not believe you will be able to repay the loan within the agreed-upon term, consider contacting your lender. If you are experiencing financial troubles, you should contact your lender immediately and explain your circumstances.
Borrowing Responsibly with Payday Loans
Payday lenders may allow you to ‘roll over’ your outstanding loan for another month. However, while this provides you more time to pay, it will result in more fees and charges. Lenders are only permitted to provide this choice twice to a borrower. Hence, if you agree to extend your loan, the lender must share a document warning you about the risks of borrowing more and directing you to a debt relief centre.
If you believe a payday lender has treated you unfairly, you can file a complaint with the lender. If the problem isn’t rectified, you can escalate it and file a complaint with the Financial Ombudsman Service.
Exploring Alternative Borrowing Options
There are less riskier alternatives to payday loans that are less likely to trap you in debt. Consider exploring elsewhere if you are currently in debt, aren’t sure you can repay a payday loan, or simply want to find another means to get money.
Mentioned below are a few alternatives to payday loans that are worth considering:
Personal Loan
A personal loan allows you to borrow a large sum of money for a specific period of time, returning a fixed amount each month. It can be a less expensive kind of borrowing, with interest rates that are normally substantially lower than those of an overdraft. However, in order to be approved for an unsecured loan, you must typically have a good credit history.
LoanTube has partnered with a lot of FCA authorised lenders in the UK who offer personal loans. Compare real APRs from various lenders and choose the right lender as per your financial needs with a single application form.
Credit Card
Credit cards, when used carefully, can be a less expensive option to borrow money than a payday loan. If you are able to get a 0% interest credit card, you will not be charged any additional fees as long as you pay back it in full before the introductory period expires.
Even cards that do not offer a 0% interest period will not charge interest if you pay off your credit card in full each month. Even if you don’t pay off your balance every month and are charged interest, the rates should be lower than a payday loan.
However, only charge what you can afford to repay on your credit card. If you don’t pay off your credit cards on time, interest costs can add up over time, leaving you in debt.
Guarantor Loans
You can find a cousin or acquaintance to act as a guarantor on a loan, increasing your chances of approval even if you have a low credit score. If you are unable to repay the debt, the guarantor is obligated to do so. Guarantor loans are generally cheaper than unsecured loans as you will be using a co-signor for your loan.
Avoiding the Debt Cycle with Payday Loans
If you are experiencing financial issues, The first step is to contact your lender. It may place you on a repayment plan that reduces your monthly payments to an amount you can afford, but this often means that you pay more in interest over time. Payday lenders may offer you the option of deferring or rolling over your payment due to the following month.
Using a rollover offers you an extra month to make your payment, but you may end up paying more interest – but by law, you should never spend more in fees and interest than you borrowed.
Returning to basic budgeting principles is one of the most effective methods to lessen your reliance on credit. Determine your priority and non-priority debts and begin paying them off in order. Stop incurring new loans and begin reducing your current debts so you can stay on track with your finances.
A payday loan will usually not harm your credit score as long as you repay it in full and on time. When you apply for any loan, your credit history is reviewed. This leaves a mark on your record, but it merely indicates that you applied for credit.
Credit Checks for Payday Loans
When you apply for a payday loan, generally, the lender will run a credit check on you, which will take off a few points from your score if it is a hard credit check. There are lenders who may run a soft check to assess your eligibility. A soft credit check doesn’t impact your score and doesn’t leave a footprint on your credit report. You may ask the lender for a soft check if you are not sure your payday loan application will be approved by them.
Impact of Credit Scores on Loan Approval
If you have a good credit score, you will get a lower interest rate and the chances of your loan application being approved by the lender also increase. However, with a low credit score or no credit history, your payday loan application may be turned down by the lender. In some cases, the lender may approve the loan application but offer you a high interest rate.
No Credit Check Payday Loans
You may find offers of payday loans with no credit checks, however, there are no such loans. As per the Financial Conduct Authority (FCA), every lender is liable to conduct a credit check on the applicant before arriving at any decision. If someone offers you a no credit check payday loan, be aware as they may be fraudsters.
There are various benefits of using a payday loan, however, these loans come with some risks as well. Knowing both the risks and benefits of a payday loan will help you decide better.
Advantages of Payday Loans
Even if you have a poor credit history, you may be approved if the lender believes you can afford the repayments. This loan can be an option if you need an urgent loan (including one for persons with terrible credit), you might get the money in your bank the same day.
Another advantage of a payday loan is that you can roll the loan over up to twice before repaying it, but you will pay additional interest if you do. They are convenient because you may apply online and receive same-day loans, even on weekends.
Risks and Potential Pitfalls of Payday Loans
One of the risks of borrowing a payday loan is becoming locked in a debt cycle, such as borrowing money because you are short on finances, and then running out of cash again because you are paying back a loan plus a lot of interest. Customers who find themselves swimming against a financial current and fighting to pay off the rapidly expanding debt quickly become burdened by the loans.
A payday loan is an unsecured high cost short-term loan that you can borrow for a short period.
The loan is given in instalments. You have to pay the loan back with interest to the lender within the agreed time.
Most of the lenders will require you to be above 18 years of age, a resident of UK, and you must have a source of income to prove that you can repay the loan as agreed with the lender. However, the eligibility criteria for borrowing a payday loan may vary from lender to lender.
As these short-term loans, the amount may range from £100 to £1000. However, the amount you can borrow also depends on the lender. Check how much are they offering, and apply for an amount that you need.
The maximum repayment period for a payday loan is generally 24 months.
You can apply for a payday loan online or offline as well.
The time it takes to get approved for a payday loan depends on the internal process of the lender. Some lenders may approve the loan application on the same day while some of the lenders may take up to a few days for approval.
Yes. You may get a payday loan even with a bad credit score. But the rate of interest will be high as you will be considered a risky borrower who has a high chance of defaulting on the loan due to the credit history you have.
Yes. Some lenders offer payday loans for self-employed people. If you have a source of income and you can easily repay the loan you are planning to borrow, then you can apply for a payday loan.
You will be asked to submit proof of residence, age, identity, employment and income proof while applying for a payday loan. However, some lenders may ask you for some additional documents to review your loan application.
No more than £24 in fees and charges will be added to each £100 borrowed for a 30-day loan. The highest default fees that can be assessed against you if you don’t make your payments on time are £15 plus interest.
A total cap ensures that you will never have to repay more than double what you borrowed.
The majority of payday lenders now permit customers to spread out the repayments over a few months, although the average length of these loans is still much less than a year. A 30-day loan in terms of an annual rate when expressed as an APR can go more than 1,000%.
Yes. You are allowed to extend or roll over your balance payment in a payday loan.
Yes. Some of the lenders allow you to repay the payday loan early, however, they will charge an early repayment fee for that.
You may be asked to pay a broker’s fee, a loan origination fee, an early repayment fee, and fees for not paying the loan on time.
You will be charged a late payment fee if you cannot repay the loan on time. Also, your credit score will be impacted by it.
Yes. If you do not repay the loan, your credit score will be badly impacted.
Yes, you can borrow personal loans, overdrafts, use a credit card, or guarantor loans instead of borrowing a payday loan.
By repaying the loan on time, you can avoid getting trapped in a payday loan cycle.
You have the first 14 days to change your mind about the agreement at any time.
Only the interest on the credit you used must be paid. Any additional fees must be reimbursed to you.
Yes. You can apply for multiple payday loans at the same time, however, it will impact your credit score.
Yes. You can borrow a payday loan online.
If you deal with FCA authorised lenders who have a secured website then you can consider it safe to borrow a payday loan online.
Yes. Payday loans are heavily regulated in the UK by the Financial Conduct Authority (FCA).
You may reach out to the Financial Ombudsman Service to complaint about a payday lender.
Yes, you can cancel the payday loan application within the first 14 days of your loan approval.
Payday loans are short-term loans, so you can use the money for any purpose that you may want. However, as the amount you will get is low, only short-ticket items can be attended to when it comes to payday loans.
Consider the amount that you can repay once you take out the loan. Also, check the interest rate and APR the lender is offering you.
You can find reputable payday lenders online – check if they are authorised by the FCA.
You choose the terms, we do the math.
Check your affordibility with our Personal Loan calculator and make an informed financial decision.
Calculate monthly payments
Representative Example
Loan Amount
£1,000
Loan Term
18 Months
Total repayment
Monthly repayment
RAPR
79.5%
Interest
59.97% p.a (fixed)
*The rate you get will depend on your individual, financial circumstances. Late repayment can cause you serious money problems. For more information, go to moneyhelper.org.uk.
The rate you are offered will depend on your individual circumstances.
Representative APR Example: On an assumed loan amount of £1,000 over 18 months. Rate of interest 59.97% per annum (fixed). Representative 79.5% APR. Total amount payable £1,554.10 of which £554.10 is interest. 17 equal monthly repayments of £86.09, and the final month’s payment of £90.57.
Some of the offered loans might be classed as High Cost Short Term Loans. APR rate starts from 18.22%. The maximum APR rate is 1721%, but you will get a personalised rate tailored to you. The minimum repayment term is 3 months, the maximum repayment term is 7 years. The minimum loan amount is £250 and the maximum loan amount is £35000.
Warning: Late repayment can cause you serious money problems. For more information, go to moneyhelper.org.uk
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