12 Month Loans 

Warning: Late repayment can cause you serious money problems

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Representative APR

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Author: Internal 

For many consumers choosing a suitable short term borrowing product can be difficult. In the market for borrowing a small amount of money there is now plenty of choice available. Over the years the product being offered by lenders has changed quite a lot and as a result consumers using the market now can expect to find a good selection and feeling of choice from the lenders available. As has always been the case one of the most important considerations when looking to get a loan is the amount which needs to be repaid and also when. Over the years it has become clear to lenders that consumers using a short term lending product need to have a choice of repayment terms and therefore amounts. The past offerings focused on customers repaying the amount which they had borrowed as a lump sum but now that simply isn’t the case. In fact 12 Month Loans will be paid over 12 equal instalments.

When borrowing 12 Month Loans from an online lender it is important to understand that the overall cost is likely to be higher than a shorter term at the same interest rate. This is logical as you have the funds for longer. However it is possible that the new Financial Conduct Authority rate cap may mean that the interest rate has to be lower than the 0.8% per day otherwise a 12 months loan would exceed the other cap of not costing more than 100% of the loan amount.