Instant Loans

Who can relate to any of the following situations…?

1. It’s a Saturday morning, and you have a whole week’s worth of clothes to wash. Suddenly, your washing machine decides to spit water all over the kitchen floor and refuses to start.


2. Your trusty old car chooses the day you’re already running late to work to finally give up the ghost. The garage quotes you £500 upfront for repairs.


3. You’re finally feeling in control of your finances… and then an unexpected bill drops through your letterbox.

Many of us have experienced a similar scenario at some point in our lives, and when faced with a financial emergency, you might wonder whether you could get an instant loan.*
What are instant loans, and do they exist?
The Little Loans guide answers some key questions and explains how we could help you search for a suitable loan to cover an unexpected expense.

What is an instant loan?

An instant loan could be described as a sum of money borrowed from a lender, which is paid into your bank account on the same day as your application is approved.
In reality, instant loans do not exist. This is because a loan application process cannot and should be not rushed or ‘fast tracked.’
Applying for a loan is serious, and you should take your time in researching your options and filling out the paperwork. The process of applying for a loan could take anywhere between half an hour and a couple of hours. Some lenders could even ask that you complete your application at a local branch.

While some lenders could send your money on the same day as your application is accepted, there’s no guarantee that you’ll receive the money that day. Payout timescales vary between lenders, and in addition to this, the time it takes for the money to appear in your account will depend on your bank’s policies and procedures.

Five reasons to choose Little Loans to help you search for an instant loan

While it’s important to remember that instant loans don’t exists, Little Loans could help you search for a loan to suit your needs.

1. Little Loans is a credit broker. We’re proud to work with a large panel of lenders who offer short-term loans from £100 to £10,000.


2. We don’t charge any fees for our service; it’s free to use Little Loans to search for a quick loan.


3. You can check your eligibility for a quick loan in just 60 seconds, with no impact to your credit score.**


4. Our online application form takes less than five minutes to fill in and can be completed 24 hours a day, 7 days a week.


5. If your application for a quick loan is approved, some of the lenders on our panel can send your money the same day.***

**If you’re matched with a loan and choose to make a full application directly with the lender, they will carry out a creditworthiness assessment, which will include either a hard search or Open Banking. A hard search will remain visible on your credit file for up to 12 months, and multiple hard searches within a short period of time will have a negative effect on your credit score.

*** The time it takes for the money to appear in your account will depend on your bank’s policies and procedures.

When might you consider an instant loan?

An instant loan might be something you think about if you find yourself faced with an  unexpected financial emergency. Applying for a loan isn’t a decision that should be made lightly, however, and it’s important to take your time when weighing up your options.
Do you have any savings that could bridge the gap instead?
Could a family member or friend help you out?

Remember, a short-term loan should never be seen as a long-term financial solution.

What’s the maximum amount of money that I can borrow with an instant loan?

With Little Loans, you can search for a loan up to the value of £10,000.
Before you search for an instant loan, you should work out the exact amount of money that you need, and you should never apply for more than you can afford to repay.

What are the repayment terms for an instant loan?

The lenders on our panel offer loans with repayment terms between 3 and 60 months, depending on the amount of money you apply to borrow.

How much will an instant loan cost?

The cost of an instant loan will vary based on a variety of factors.
The interest rate you’re offered will depend on your financial circumstances; credit history; the amount borrowed; and your chosen repayment term.

A shorter repayment term will mean you will be charged less interest than a longer term loan, although your monthly repayments will be higher and you’ll have less time to repay the money you owe.

When researching instant loans, you should pay attention to the Annual Percentage Rate (APR). The APR is the annual cost of borrowing and includes interest and any standard fees. The lower the APR, the less the loan will cost you to borrow.

Are instant loans the same as payday loans?

Remember, instant loans do not exist in any form.

An instant loan could be described as either a payday loan or a short-term loan, although they are very different.
A payday loan will usually need to repaid in full within a month, whereas a short-term loan will usually come with a variety of repayment terms to choose from. This could range from a number of months to several years, depending on the amount of money you apply to borrow.

Can I get an instant loan?

You can search for an instant loan with Little Loans if you:

• Are a UK resident;
• Are over 18 years of age;
• Have a regular income paid into your bank account; and
• Have a bank account with a valid debit card.

Can I get an instant loan with bad credit?

You may be eligible for a loan, even with bad credit, although if successful, you might not be approved to borrow as much money as you need, and you could be offered a higher interest rate.
A number of lenders on the Little Loans panel specialise in loans for people with bad credit.

Can I get fast approval on an instant loan?

The Little Loans online form should take around five minutes to complete, and we can check your eligibility for a loan in just 60 seconds.
Although our lenders aim to provide a timely response to your application, they will need to complete a full creditworthiness assessment as part of the process.

While it’s possible to get a decision on the same day you make an application, this will depend on the time you apply. For example, if you apply in the middle of the night, your application might not be processed until standard working hours.

Several of the lenders on the Little Loans panel are able to send your money on the same day as your application is approved, although you should bear in mind that every lender will have their own processing and payout timeframes. Please see the section below for more information on same-day payouts.

If I’m approved for an instant loan how soon could I get the money?

Your money could be sent on the same day as your application is approved, although the time it takes for the funds to show as available in your account will depend on your bank’s policies and procedures.

I can’t afford to repay my loan; what can I do?

Before you complete the application, you should consider whether taking out a loan is the right option for you. You’ll need to be confident that you can afford to make your monthly repayments; a late or missed repayment will damage your credit score, and you could be charged additional fees.
If you’ve taken out a loan that you can no longer afford to repay, you should contact your lender as soon as you can.

There are several organisations which can offer free financial advice, including StepChange, MoneyHelper, Citizens Advice, and National Debtline.

*It’s crucial to remember that no loan can be considered ‘instant.’ The entire application process could take anywhere between 30 minutes to a few hours, and every lender will have their own payout timeframes. Even if your money is paid out the same day as your application is approved, the time it takes for the money to become available in your account will depend on your bank’s policies and procedures.