No matter how hard you try to plan for the future, unexpected bills can have a massive impact on your finances. That’s where small loans can help. These loans provide you with just enough funds to cover your urgent expenses and ensure you don’t fall behind on bills.
While small loans can give you quick access to funds, you need to understand the advantages and disadvantages before applying for one. Here at Tendo, we are a transparent broker rather than a direct lender. We are committed to helping our customers understand the benefits and financial implications of loans. This guide is designed to help you decide whether small loans are for you and how to apply for one if you decide to.
What are small loans?
Small cash loans are a type of short-term loan that gives you quick access to funds. As the name suggests, small loans can provide you with a small amount of money in a short amount of time.
The key characteristics of small loans include:
- Short term repayments: you can borrow a loan between 3 to 36 months with our lenders
- Higher interest rates: short-term loans tend to have higher interest rates than traditional loans
- Online application: apply for a small loan using our simple online form
While small cash loans can help you cover urgent expenses, you need to borrow responsibly and ensure you can meet the repayment terms.
How do small loans work?
It couldn’t be easier to apply for a small loan. You can complete our online form, and we will use it to match you with our panel of over 50 lenders. Once you have approved the quote, you will be asked to e-Sign the agreement and the funds will be quickly paid into your account.
You must meet the lending eligibility before being approved for a small cash loan in the UK. Our lenders require you to be at least 18 years of age. You must live in the UK, have a regular income from work and have a UK bank account. Our lenders also require you to have a valid email address and phone number so that we can stay in touch with you.
Can I get a small loan today?
The lending process is quick and easy. Once you have completed and submitted your application, our lenders will review your information. After you receive a match, we will swiftly give you the quote to review and make a decision as to whether you wish to progress with it. The lender may require some additional information from you to support your application.
If you’re happy with the terms of the agreement (such as the interest rate and repayment schedule) you can accept the quote. It’s crucial that you read over the terms and conditions before accepting the quote to ensure you fully understand the associated costs with your small loan.
Small loans with bad credit eligibility
Many of our lenders accept applications from individuals who have a bad credit score. There’s no obligation to accept the quote you’re given. However, if you do accept the small loan quote, you will receive the money quickly into your account once the lender has conducted their credit and affordability checks.
Benefits of small loans
Small loans have many benefits, as detailed below:
- Typically quicker access to funds: after applying, you could be approved for a loan within a matter of minutes
- Online application: apply for a loan quickly through our online application form
- Flexibility: you could borrow between £100 to £5,000 with Tendo’s lenders
What are the disadvantages of small loans?
- Depending on how much you are looking to borrow a small loan may not be sufficient to cover your credit need
- Due to their short repayment terms, you need to be sure you can repay the loan in the given repayment schedule. This could be difficult for some people to manage.
- Smaller and short term loans tend to also have higher interest rates than traditional loans, which could make them more expensive than you originally thought.
What types of small loans are available?
Some of the different types of small loans in the UK include:
- Instalment loans – designed to be paid back in pre-arranged instalments
- Payday loans – these loans help cover your expenses until you are next paid
At Tendo, we are committed to helping you find the best loan. We work with a panel of over 50 lenders who may be able to offer you a small loan in the UK.
Why Choose Tendo for a small loan if you have a bad credit history?
We offer a reliable service that’s available 24/7 and which is designed to find the right loan for your unique circumstances. From the moment you apply for a small loan to receiving and accepting quotes from lenders, we can help you every step of the way. We can help you find lenders and get accepted for small cash loans, even if you have a bad credit history.
There’s no fee to use our service and you are under no obligation to accept the quotes you are given.
What to do if you’re struggling with debt
While small loans in the UK can be a fast way to access funds, it’s important you understand the implications. If you need financial advice or assistance, it’s advisable to seek help from any of the following services:
If you feel you are struggling, or may struggle with your loan repayments, we would recommend you always speak with your lender at the earliest opportunity
