Personal installment loans

What is a personal instalment loan?

It is a type of borrowing where you receive a lump sum of money and repay it over a set period through regular, fixed payments, known as instalments.

The amount you can borrow typically ranges from a few hundred to several thousand pounds, depending on the lender and your creditworthiness. Repayment terms can vary, generally ranging from one to several years. You make regular, fixed payments (usually monthly) until the loan is fully repaid.

The interest rate can be fixed or variable. Fixed rates remain constant throughout the loan term, providing predictable payments. Variable rates can change, which means your payments might fluctuate. These loans are often used for a variety of purposes, such as consolidating debt, financing large purchases, covering unexpected expenses, or funding home improvements.

Lenders typically conduct a credit check to assess your creditworthiness. A good credit score can help you secure a loan with a lower interest rate. Personal instalment loans can be unsecured or secured. Unsecured loans do not require collateral, whereas secured loans require an asset (like a car or savings) as collateral.

Be aware of any additional fees, such as origination fees, prepayment penalties, or late payment fees, which can increase the overall cost of the loan. Personal instalment loans offer the advantage of predictable payments and the ability to spread the cost of borrowing over time, making them a popular choice for managing larger expenses.

As an alternative, you can also take out a personal loan. Your possible expenses:

Personal loan calculations for 1 year (example)

Is it hard to get a personal installment loan?

The ease or difficulty of obtaining a personal instalment loan in the UK depends on several factors, including your financial situation, credit history, and the specific lender's criteria.

A higher credit score can make it easier to get approved for a loan and secure a lower interest rate. With a lower credit score, you might face higher interest rates or find it more challenging to get approved. Lenders prefer borrowers with a steady income and stable employment history. Your income should be sufficient to cover the loan repayments comfortably, alongside your other financial obligations.

A lower debt-to-income ratio indicates that you have a manageable level of debt relative to your income, which is favorable for loan approval. A high debt-to-income ratio might make lenders hesitant to approve a new loan. Different lenders have varying criteria for loan approval. Some may be more lenient, especially those specializing in loans for individuals with poor credit.

Applying for a loan amount that aligns with your financial situation and repayment capacity increases your chances of approval. Choosing a loan term that fits your budget and repayment ability is also important. Providing all required documents, such as proof of income, identification, and bank statements, can streamline the approval process.

If traditional banks are hesitant, consider looking at credit unions, online lenders, or peer-to-peer lending platforms. They might offer more flexible criteria. If you have concerns about your eligibility, it may be helpful to check your credit report, address any issues, and explore different lenders to find the best fit for your situation.

See the similar FAQ about UK banks: 

• Bank of Ireland lending criteria
• HSBC bank transfer time within the UK
• HSBC graduate loans
• HSBC in America
• HSBC loan early repayment: how to manage

Details of companies offering the financial services:

AIB Group (UK)

Head office’s address: 1 Undershaft, London EC3A 8AB

Phone: +44 (020) 764-733-00

Web-site: https://aibgb.co.uk

Swift code: AIBKGB2LXXX

Reference number: 122088

ABN: NI018800

BSB: AIB

Cash Compare

Head office’s address: London

Web-site: https://www.cashcompare.co.uk/

Cashfloat

Head office’s address: Office 8. 2A Highfield Avenue London, NW11 9ET

Contact center: 020-3757-1933

Web-site: https://www.cashfloat.co.uk/

Evolution Money

Head office’s address: 9 Portland Street, Manchester

Contact center: 0161-814-9158

Web-site: https://enquiry.clarity-uk.com/

Fast Loan UK

Head office’s address: Shire Park, 2 Falcon Gate, Welwyn Garden City AL7 1TW

Web-site: https://www.fastloanuk.co.uk/

Got Capital

Head office’s address: 131 Finsbury Pavement, London

Contact center: +44(0)203 7500096

Web-site: https://gotcapital.co.uk/

Halifax

Head office’s address: The Mound, Edinburgh EH1 1YZ

Contact center: 0345-720-3040

Phone: +44 (011) 3242 19 84

Web-site: http://www.halifax.co.uk/

Stock code: HALP

HSBC Bank

Head office’s address: Unit 8, Canada Square, Retail, London E14 5AH

Phone: +44 345 740 4404

Web-site: https://www.hsbc.co.uk/

Swift code: HBUKGB4B

Reference number: 114216

Stock code: HSBA

ABN: 00014259

BSB: HBUK

Lending Stream

Head office’s address: Lending Stream, PO Box 10756, LEICESTER, LE3 4GX

Web-site: https://www.lendingstream.co.uk

Nationwide

Head office’s address: Nationwide House Pipers Way

Contact center: 0800-30-20-15

Phone: +44 (034) 5730 20 15

Web-site: http://www.nationwide.co.uk

Swift code: NBSMGB22

Reference number: 106078

Stock code: NBS

ABN: 355B

BSB: NBSM

Payday UK

Head office’s address: Payday Loans Limited, The Charter Building, Charter Place

Contact center: 0800-302-9409

Web-site: https://www.paydayuk.co.uk/

Salad Money

Head office’s address: 49 Greek St, London W1D 4EG

Contact center: +44-20-3092-0896

Web-site: https://www.saladmoney.co.uk

Santander

Head office’s address: 2 Triton Square, Regent's Place, London, NW1 3AN

Contact center: 0800-389-7000

Web-site: http://www.santander.co.uk/

Swift code: ABBYGB3E

Reference number: 106054

ABN: 02294747

BSB: ABBY

Sunny

Head office’s address: London

Web-site: https://sunny.co.uk/

Tesco Bank

Head office’s address: 2 S Gyle Cres, Edinburgh EH12 9FQ

Contact center: 0800-591-688

Phone: +44 131 203 5000

Web-site: http://www.tescobank.com

Swift code: TPFGGB2L

Reference number: 186022

Stock code: TSCO

ABN: SC173199

BSB: TPFG

TSB

Head office’s address: Henry Duncan House, 120 George Street, Edinburgh EH2 4LH

Phone: +44 (034) 5975 87 58

Web-site: http://www.tsb.co.uk

Swift code: TSBSGB2A

Reference number: 119278

Stock code: 94AQ

ABN: SC095237

BSB: TSBS

Zopa

Head office’s address: London

Web-site: https://www.zopa.com/