If you don’t have savings to fall back on, a crucial cost could threaten your finances.
Perhaps you’ve been hit with an unexpected bill, need to replace an essential appliance, or want to get your boiler sorted in time for the colder months. Whatever it may be, an instalment loan could help you spread the expense over several months or even years.
CashLady is a reputable online credit broker working with a panel of over 30 UK-based direct lenders, all of whom are authorised and regulated by the Financial Conduct Authority (FCA).
With the option to apply for a loan between £100 and £10,000, with repayment terms ranging from 3 months up to 60 months, you could access the money you need, even if you have bad credit.
What is an instalment loan?
An instalment loan is a type of personal loan that allows you to repay your borrowing in a way that suits you.
Some borrowers may find that paying off their loan in instalments is better suited to their financial situation, as spreading the cost could be easier to manage than making one lump sum repayment.
Are instalment loans the same as payday loans?
No, instalment loans are quite different from payday loans. Payday loans are typically paid back in full within a month. With an instalment loan, you won’t be expected to pay back the money you owe in one go. Instead, you’ll make regular payments - usually each month.
Instalment loans: how many months can you spread the cost?
That depends on how much money you want to borrow.
With CashLady, you can search for an instalment loan across repayment terms between 3 and 60 months. We’ve provided a run-down of the available loan amounts and terms in the table below.
| Loan amount | Available repayment terms |
| £100 - £950 | 3, 6, or 12 months |
| £1,000 | 3, 6, 12, 18, 24, or 36 months |
| £1,050 - £2,500 | 6, 12, 18, 24, or 36 months |
| £2,550 - £7,500 | 12, 18, 24, 36, 48, or 60 months |
| £7,550 - £10,000 | 18, 24, 36, 48, or 60 months |
How much will an instalment loan cost?
The overall cost of an instalment loan will depend on:
- How much money you apply to borrow;
- The repayment term you choose;
- The interest rate you’re offered;
- The loan’s Annual Percentage Rate (APR); and
- Any applicable standard fees.
The longer the term, the more you’ll pay in interest, although you will have more time to cover the cost, and your monthly repayments will be lower. A shorter term will make your monthly repayments more expensive and give you less time to pay back the money you owe, but you will pay less interest overall.
The interest rate you’re offered will be decided by several factors, including your credit score and affordability.
Bad credit instalment loans
While a person with a lower credit score could struggle to get approved for a loan, there are many direct lenders, including several on the CashLady panel, who are willing to consider applications for bad credit instalment loans.
You should be aware that a bad credit instalment loan could come with a higher interest rate. If you have bad credit, you might also encounter borrowing restrictions; for example, you may not be approved to borrow the amount of money that you need and could be offered a lower amount instead.
Choosing the best lender for an instalment loan
Everyone’s financial needs and situations are different, and the lender that’s suited to one person won’t necessarily be a good fit for another.
When searching for an instalment loan direct lender, you may wish to check whether they offer your preferred loan amount and term. You might also browse through their customer reviews on Trustpilot or Feefo to give you an idea of the service they typically provide.
You should make sure that the lender you choose is authorised and regulated by the FCA. You can check the register here.
Finding the right lender for you can be a guessing game. It’s also worth bearing in mind that when you apply for a loan directly with a lender, a creditworthiness assessment will be carried out. This could include a hard search, which will remain on your credit file for up to 12 months, and multiple hard searches within a short period of time will cause your credit score to decline.
A credit broker, like CashLady, could help to narrow down your loan search by matching you with the lender more likely to consider your application. This could save you time, as well as potentially protect your credit score from multiple hard searches.
Who can apply for an instalment loan?
CashLady is a credit broker, not a lender.
You can search for an instalment loan with CashLady if you:
- Are over the age of 18;
- Are a UK resident;
- Have a UK bank account and valid debit card; and
- Have a regular source of income paid into your bank account.
Search for an instalment loan with CashLady
If you meet our eligibility requirements and you’d like to search for an instalment loan, you can expect the CashLady journey to look like this:
1. How much money would you like to borrow, and for how long? Let us know and complete our online form. This should take around 5 minutes.
2. In just 60 seconds, we’ll complete a soft search with no impact on your credit score and scan our panel of lenders for a suitable instalment loan for you.
3. If we’re able to match you with a lender, you’ll be redirected to their website. If the instalment loan we’ve found for you is affordable and suits your financial situation, you can make a full application with the lender.
4. The lender will carry out a creditworthiness assessment, which will include a hard search or Open Banking. As discussed, a hard search will remain on your credit file for up to 12 months, and multiple hard searches will damage your credit score.
5. If you pass the lender’s creditworthiness assessment and are happy to confirm the loan, the lender will let you know when your money will be sent. Some of the lenders on the CashLady panel can send your money on the same day as your application is approved.*
How to repay an instalment loan
As the name suggests, an instalment loan is repaid in instalments – usually on a monthly basis – until your chosen term comes to an end. Your repayments will include interest.
It’s important to make sure that you can afford to make your monthly repayments alongside any essential outgoings, such as your rent or mortgage, bills, and food.
You should go through your monthly outgoings in thorough detail before you search for a loan to make sure this borrowing option is suitable for your financial situation. If you’re not sure where to start, you might find the free MoneyHelper Budget Planner useful.
What happens if I miss an instalment when repaying my loan?
Missing or making a late repayment will harm your credit score. Some lenders may also charge you a fee.
If you’re struggling to manage your instalment loan repayments, the best thing to do is contact your lender sooner rather than later. This may feel daunting, but please know that your lender has your best interests at heart and will want to work with you to help put a plan in place moving forwards.
What to do if you’re struggling with debt
Help is available to people who are worried about money and debt. The organisations listed below can provide free and impartial advice.
Feeling overwhelmed by money troubles can make it difficult to know where to start in getting back on track. CashLady and charity StepChange are proud to have collaborated on the Money Health Check. The quiz is free to take, and the answers you provide about your financial situation will generate advice on what you can do next.
* Payout timescales vary between lenders. The time it takes for the money to appear in your account will depend on your bank’s policies and procedures.
