Borrow £2500 And Pay It Back Within A Year

Want a borrow more with lower repayments that are spread over a more extended period? Then 12-month loans are ideal. Unsecured, no fees and no guarantor

Loans that are over one year are perfect for some, but not for others. There are advantages and disadvantages to these types of packages.  In real cash terms, the 12-month loan is more expensive than the payday loan. In APR terms, the 12-month loan is much less than the 1-month loan.

Confused? Don’t worry; we will try to explain it.

Before the Cheque Centre came on the scene, if you wanted a loan over a year, you would have to go to your local high street bank physically. Banks were primarily risk-averse and wouldn’t want to take a chance on those borrowers who didn’t have A* Credit status. In our view, that was over a kill on a loan of just £1000. More importantly, you would struggle to get a loan from a bank if you weren’t a customer of theirs.

That started to change in 1996, and smaller independent lenders began answering the call. Products appeared that would give the banks a run for their money. One of those products was the short term independent loan.

Short term loans are anything up to 12 months in duration. Often for loans of less than £1500, maybe up to £2000 with some lenders.

The benefits of non-bank lenders offering to lend directly was that they were quick and discreet. Loans could be arranged in less than 30 minutes and paid out either in cash or straight to a borrower’s bank account.

In the 25 years since these types of loans first appeared, not much has changed from the customer’s perspective. The application process is the same (short form), the verification process is the same (no paperwork), and the pay-outs are just about the same – although borrowers would now struggle to get paid their loans in cash.