Small Loans

Looking for a small loan? Not sure which option is best for you? Take a look at our ‘small loans’ guide where we explain the different types of small loans for you.

Small Unsecured Loans

A small unsecured loan may be the right option for you as it does not require you to provide any security (such as your house) due to the loan amount being small. However in some cases it could work out as an expensive option if you plan to borrow as little as £250-£500, as the APR will usually be a lot greater for borrowing such a low amount. Taking this into account, the benefit of taking an unsecured small loan all depends on the amount you are looking to borrow.

Short term Loans

A Short term lender will allow you to borrow £50-£1000 over a very short term period; usually no longer than 1 month, in return for very high interest rates. Generally speaking, with an average APR of 2,255%, borrowing £100 for 30 days from a Short term lender will cost you around £30. This is a very expensive form of lending, and must only be used in an emergency, and you must ensure that you are financially able to repay the borrowed funds on time or you could incur serious charges.

Credit Card Loans

When taking out a loan using a credit card it is important to be very careful when choosing your card. Some credit card companies offer 0% interest on purchases as long as you repay the loan during the agreed interest-free period – make sure you do your research when shopping round different card companies. However, it is important to remember that this 0% interest rate only applies to purchases; it will not apply if you were to withdraw cash.

Overdraft Loans

Most current accounts will come with an overdraft, which means that you can overspend on your account up to a certain and agreed amount, acting as an easy small loan. This is usually interest free, if authorized by your bank.

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