12 month loans are used by people who want a little more time to repay their loan. In the past payday loans were repaid on the borrowers next payday or within 30 days of having applied for the loan.
Times have changed and now UK direct lenders offer short term loans over a longer period. It is possible to take out a loan of this kind over a repayment period of up to 60 months if you chose.
A 12 month loan could help you spread the cost of the loan over 12 instalments giving you the breathing space to sort out your finances for the better. Although a 12 month loan may be more expensive than a loan repaid over a shorter time frame you have to consider the benefits of smaller monthly repayments. Some direct lenders may offer you the opportunity to repay the entire loan early with no penalties or some may charge a fee. It is important to check with each lender individually.
Applying for a £1,000 loan online is a straightforward process. It only takes a few minutes and the whole process can be carried out online.
12 month loans are normally for relatively larger loans of £100 loans or £500 loans. Cars can be expensive to repair nowadays and fixing them can cost a bit of money and we may not want to have to eat into our savings to get the car back on the road. So, sometimes for the sake of the household financial cash flow taking out a small loan might work out better in the long run.
The Financial Conduct Authority expects that any direct lender in the UK offering credit with interest over 12 months must perform a credit check on all applications.
If you are being promised a 12 month loan with no credit check you may want to question the lender how that is possible. When you submit your 12 month loan application the direct lender will carry out a soft credit check based on your details to see if they are able to offer you a loan. It is only when you accept a 12 month loan offer will a lender then carry out a hard credit check
When you are faced with having to pay a big bill you have several options. These options are as follows:
Savings: If you have savings you might want to pay that big bill from your savings. Not a bad idea if your savings are enough that you won’t feel the dent of taking the money out of your savings account.
Sell Something: If you have stuff laying around the house which you no longer need or use then you could consider selling them on eBay or at a car boot sale.
Friends or Family: Ask friends or family for a small loan. We have written an interesting article about how to go about approaching friends and family for a loan.
If none of the options above are available to you then you could consider a 12 month loan to address your financial issues.
Having a bad credit score will not necessarily mean that you will be denied a loan. People with all manner of credit scores apply for short term loans each day through our service. Bear in mind that payday loans were created to help people who could not get credit from the banks due to their credit situation. Hence if you do have bad credit it may be more likely you will be approved for a 12 month loan by one of the direct lenders to which we connect your application to rather than from the high street banks.
Yes of course you can apply for a 12 month loan with no guarantor. These types of loans do not require a guarantor, nor do they require any security to be put up against the loan. Direct lenders to which we connect your loan application offer on the main unsecured loans meaning that they will consider your loan offer on the basis of your current credit score, income and personal circumstances.
£200 borrowed for 35 days
Annual interest rate of 292% (Fixed)
Total amount payable is £256
1212% APR Representative
As the name suggests the 12 month loan is repaid over the course of 12 monthly loan instalments. When you receive your loan offer from the direct lender, they will detail exactly which date the loan instalment will be withdrawn from your bank account and how much will be withdrawn. Some direct lenders offer the option to pay more frequently rather than once a month. There may be some direct lenders who will allow you to repay the loan early, although check their terms and conditions to see if there are any fees doing so.
From the point at which you accept the loan offer from the direct lender you might find the money in your account as fast as 15 minutes. Although it is quite common that the funds may take a few hours to arrive. The worst-case scenario is that the loan will take up to 24 hours to make its way into your bank account. Deposit speeds depend on multiple factors, such as your bank, the time of day, if it is a weekend and of course the direct lender themselves. If have any queries about the loan deposit speed, we recommend speaking with the direct lender.
What do I need to apply?
Applying for a loan is straightforward and is all online.
Before you start your application have this ready:
Simply chose how much you wish to borrow and over how many months you wish to repay the loan
Fill in our simple application form which takes only a few minutes and then apply for your loan
We send your application to our panel of lenders, once approved you will receive the funds directly to your bank account
The Cashute website supports the same level of encryption as you might find on the major on-line banks and retailers. It is important that today all online communications are encrypted end to end. This means any data transmitted between your device to our web servers are encrypted so that no one can read the traffic. Not only that but no one at Cashute can see your sensitive data when you fill in the loan application form.
Cashute does not store any of your sensitive data on any of our systems. Therefore, you can rest assured that in unlikely event that Cashute website becomes compromised or our internal systems are hacked your data is not in a position to be stolen. We take your security seriously.
Every direct lender has their own requirements and criteria in regards as to whom they are prepared to lend to. Some direct lenders are geared up to offer small loans to people with bad credit whereas others specialise in granting 12 month loans to people with good credit. Although all lenders differ in their requirements, they all have the same base requirements such as:
Over 18 years old
Be legally resident in the UK
Hold a current bank account
Be in employment
And / or
Show proof of an income
The service which we provide is free to use and you are under no obligation to accept any loan offer unless you want to.
If you are wondering what you can use your 12 month loan for the answer is pretty much anything you like. You can use it to pay the garage bill, replace the faulty fridge, home improvements basically you decide how best to use the 12 month loan. Although these types of loans were designed to help people out a of sticky financial situations as opposed to be used for luxuries like holidays or a night out on the town. Short term loans should not be used to address longer term debts.
It is completely free to use our service. Cashute do not charge you anything to apply for a loan we make our money by receiving a small (v-small) commission from the direct lenders. We want to help borrowers with as much information as possible regarding these types of loans with our informative articles on or blog. When you apply for a loan via Cashute you can rest assured that we do not carry out any credit checks or searches. Our function is to help connect your application with multiple direct lenders with on simple form.
Short term loans like these 12 month loans have a reputation of being expensive. This used to be the case before the Financial Conduct Authority stepped in to enforce stricter rules and regulations on the entire payday loan industry. The FCA now state that no direct payday lender can charge more than 0.8% interest per day and a borrower will never have to repay more than double the original loan amount. Before taking out any credit make sure to check the FCA register to see that the firm is authorised to provide credit.
To apply for an instant loan is quite easy, gather your bank details together and provided you meet the basic criteria below you can start the application process:
An instant payday loan is normally paid back after your next payday cheque arrives in your bank account – normally 30 days from the date that you borrowed the money.
When you have completed all the details on the application form click on the “Apply” button and wait a few minutes and you will get a response from one of our direct lenders once we have found a suitable match for you, they will send you a loan proposal which at that point you can decide if you wish to proceed with the instant payday loan offer, if you do accept then just apply and the money will be sent your bank account within hours, always remember that you can apply with no obligation even if you have bad credit as many direct lenders support payday loans bad credit.
Our direct lenders are fully aware that their customers are applying for payday loans due to a financial emergency based on that they expect to receive their funds quickly therefore when you apply for a payday loan online our lenders will do their utmost to make that happen.
If you find yourself in difficulties and are unable to make your repayments, we strongly advise that you contact your creditor immediately, we also recommend that you speak to the companies listed below.