What is a Small Loan?
A small loan is an unsecured loan that is borrowed for a period of a year or less. The credit product doesn’t require any collateral to be pledged against the loan. Also, a borrower doesn’t necessarily have to provide a co-signor or guarantor to avail a loan.Because this personal loan is not linked to any valuable assets, people tend to borrow it – as there is no risk involved for collateral damage. It can be used to cover an emergency expense. Please note repayment of these loans are mandatory else your credit profile may have a negative impact.
Types of Small Loans in the UK
1. Payday Loans
These loans are quite popular as it allows a borrower to borrow a small amount of money for a short period of time. Small payday loans in the UK are usually paid back over a period of a year or less in easy monthly instalments.
2. Business Loans
You can also take out small business loans to cover the emergency expenses that your business may face. These loans are easier to manage and may prove to be beneficial during uncertain times.
3. No Guarantor Loans
These are loans have the same features as any other small payday loans in the UK. The borrower doesn’t have to present any guarantor to co-sign the loan.
How to Avail a Small Loan Online?
With one quick and easy online application form, you can avail a small cash loan at Loan Broker. The whole process is online and hence, doesn’t take much time.
1. Application Form
Fill in the application form with all the necessary information such as – name, loan amount, repayment tenure, bank account number and other details, current employment details, date of birth, email address, and a contact number.
2. Get the Decision
Once you submit the application form online, our lenders will verify the information provided by you. The lenders will conduct a credit check to assess your loan eligibility. Based on that, they will decide to lend the money.
3. Receive Loan
If the lender approves your loan application, the loan amount you had applied for will be disbursed to your bank account by the lender. It may take up to a few minutes. However, the disbursal time depends on the lender and your bank.
Things to Keep in Mind While Availing Small Loans
There are a few important things that you must consider while availing small loans in the UK.
1. How much you need
Always borrow the amount that you actually need. Do not borrow an amount that you cannot repay.
It is wise to apply and avail a loan after you evaluate your repayment affordability. Calculate your income and your expenses in order to determine your creditworthiness.
3. Repay on time
This is the major segment of the loan borrowing process. Ensure timely repayment. If you fail to make repayments on time, it may ruin your credit score.
FAQs on Small Loans
What type of loans do you offer?
Loan Broker offers a wide range of unsecured loans to the borrowers – Loans for small business, home improvement loans, debt consolidation loans, instalment loans, loans for self-employed. We deal s in unsecured loans of upto £35000*
Will my credit score be affected, if I apply?
Our lenders conduct a soft credit check to offer you various loan deals – and that doesn’t affect your credit score. If you choose a deal offered by one of our lenders, then a hard credit check will be performed on your credit report as per the FCA. That may impact your credit score. But if you repay the small business loan or any other loan that you have taken – on time, your credit score may improve.
How will I receive my funds?
The small cash loan you apply for on Loan Broker will be disbursed to your bank account by the lender. Therefore, make sure the information that you provide is correct so that you do not face any inconvenience.
Can I pay off my payday loan early?
If you want to settle your small loans early, contact the lender. And please go through the Terms & Conditions of the lender to know whether there will be an early repayment charge or not.
How do repayments work?
The loans that we offer carry a fixed rate of interest and hence, you have to make monthly repayments. If you do not make the repayments of the small cash loans in the UK on time, your credit score may be severely damaged – restricting you to borrow money in the future.
Small Loans/Quick Loans – Applying with Loan Broker in the UK
Small loans are designed considering the gravity of the urgency a borrower faces. Therefore, the borrower gets quick cash during emergencies while applying online for the loan. Loan Broker is an FCA registered credit broker that doesn’t charge any upfront fees. The lenders that we deal with are also registered by the FCA and hence, they lend responsibly.
Our easy and flexible loan application form is designed to function on desktops, laptops, tablets and mobile devices for the convenience of our borrowers. All the borrowers and their application forms are treated on an individual basis. Also, even if you have a bad credit score, you may avail any unsecured loans as the lenders we deal with do not consider the credit score as the only deciding parameter for approving a loan.