12 Month Loans from £50 to £5000^†

If you need to borrow money but need to repay the full loan amount over a longer period of time, a 12 month loan could be the best option for you. If you’re looking for an even longer period, take a look at our 24 month loans .

Life is unpredictable, we all learnt that from the pandemic, but financial surprises can increase stress and worry. During uncertain times, financial assistance may be necessary - but remember, it isn’t forever. And seeking finance doesn’t have to be daunting, as long as you source it from the right place. If you need cash quickly, why not consider applying for a 12 month loan? After your application is approved, you could see the cash in your bank account in as little as 10 minutes².

Sounds like it might be a good fit? Keep reading to find out more about 12 month loans.

• What is a 12 month loan?
• What can a 12 month loan be used for?
• Can I use a 12 month loan to consolidate my debts?
• Am I eligible for a 12 month loan?
• Can I get a 12 month loan if I have bad credit?
• Can I get a 12 month loan with no credit check?
• Do I need a guarantor with a 12 month loan?
• How much can I borrow over 12 months?
• What 12 month loan interest rates should I expect?
• How long does it take to receive my 12 month loan?
• How do I get a 12 month loan from a direct lender?
• In the future, can I top up my 12 month loan?
• Where do I go for help if I’m in financial difficulty?

What is a 12 month loan?

A 12 month loan, categorised as an instalment loan, is a short term loan solution that is usually repaid within 1 year over twelve monthly instalments. Something to be aware of is that the longer the term of your loan, the more interest you’ll pay - so make sure you factor this in when considering the length of your loan. With 12 month loans, repayments are kept low, providing greater flexibility within your budget.

What can a 12 month loan be used for?

A 12 month loan can be used for so many things! You can use your 12 month loan to pay for whatever you want. Short-term loans like these are more flexible than traditional loans, which means lenders aren’t fussed about how you spend your money. It really is down to you how you decide to spend your 12 month loan.

So whether you’ve got some home improvements planned, you’re repairing your car, or you’re consolidating your debt - a twelve month loan can help you get there.

Common uses for 12 month loans:

• Holidays
• Major life events (weddings, anniversary parties etc.)
• Home renovations & repairs
• Medical & cosmetic surgery

The important thing to remember is to never borrow money that you can’t afford to repay. As tempting as funding may be, if you have any doubt about your ability to make repayments, it isn’t worth the risk.

Can I use a 12 month loan to consolidate my debts?

If you want to use your 12 month loan to consolidate debts, this is definitely an option. However, it’s not always wise or recommended. When consolidating debts, you won’t pay less, but your debt will be all in one place, which can make it easier for you to manage.

Find out more on how debt consolidation loans work.

Am I eligible for a 12 month loan?

For 1 year loans, the criteria for lending won’t be as strict as longer term loans. Every lender’s criteria differ, but if you meet the below direct lender criteria, then you could be eligible to qualify for a 12 month payday loan:

• You’re over 18
• You’re a UK resident with a permanent address
• You’re employed and have a regular income
• Have a UK bank account with a debit card
• Your wages are paid into your UK bank account
• You are NOT currently bankrupt

Can I get a 12 month loan if I have bad credit?

Yes. We work with a range of bad credit lenders who can offer loans over 12 months for bad credit. So, don’t let your poor credit history put you off applying. With 12 month loans, bad credit isn’t always a barrier. All the lender wants to see is that you have a steady income and can realistically afford to pay the loan back in the required period.

It goes without saying that lenders will prefer to see a good credit score when making their decision to lend, but in recent years, lenders have started to look at the bigger picture of borrowing. It’s now far more accepted and understood that a credit score is not enough to determine affordability.

With that being said, we wouldn’t be doing our job if we didn’t warn against borrowing money if there’s any doubt you’ll make the repayments. Responsible borrowing is imperative, especially when it comes to 12 month loans for bad credit.

Can I get a 12 month loan with no credit check?

No, 12 month loans with no credit checks don’t exist. Every lender will check all applicant credit scores — it’s just part of the process. Their investment needs to be protected, which means they’ll check your financial circumstances and your credit history. If they’re willing to lend to you after running a credit check, you should receive an instant decision.

Please approach any lender offering 12 month loans with no credit checks with caution. Trustworthy lenders will insist on running credit checks to ensure they are lending responsibly, and not borrowing to anyone who can’t afford repayments.

Do I need a guarantor with a 12 month loan?

Usually, you won’t need to provide a guarantor for a 12 month loan. As a relatively low risk funding product, 12 month payday loans with no guarantors are quite common. If, however, the lender has concerns about your credit history, they might require a guarantor. In which case, you might be better suited to apply for a guarantor loan.

What is a guarantor?

A guarantor is someone who is able to help you obtain credit, like loans and mortgages. Almost anyone can agree to be your loan guarantor, so long as they meet the lender’s requirements. They agree to repay your 12 month loan in the event you are unable to.

How much can I borrow over 12 months?

We offer loans from £50 to £5000. We’ve found this tends to be the most appropriate amount of funding that people can comfortably afford to borrow over the 1 year period. When you apply, we’ll ask you how much you’re looking to borrow, but the amount you receive will be based on what you can afford and your financial circumstances. Once you’ve received your cash, you’ll repay the lender in monthly instalments.

What 12 month loan interest rates should I expect?

The amount of interest you’ll pay on your 12 month loan will depend on the APR you’re offered by the lender. APR is based on personal circumstances, as well as the amount you want to borrow over the twelve month period.

With 12 month loans, interest rates tend to be higher than loans offered for a longer period of 24 months.

When you apply through ThisLender, you will receive a free quote that will help you better understand how much you can expect to pay. Alternatively, take a look at our representative example in the sidebar.

How long does it take to receive my 12 month loan?

The time it takes to receive a 12 month loan can vary depending on the lender you’re matched with. When you apply for a 1 year loan through ThisLender, if approved, you can expect to receive the funds in as little as 10 minutes².

How do I get a 12 month loan from a direct lender?

You can apply for a 12 month loan from a direct lender through their website; it’s a straightforward process. However, 12 month loans from direct lenders only aren’t always the best choice. You might not receive the best rate or deal for your financial situation.

Alternatively, you can use a credit broker like us. At ThisLender, we’ve helped thousands of consumers secure the instant funding they need. We’re determined to ensure more people get access to transparent, trustworthy finance, so we only work with UK lenders who are authorised and regulated by the Financial Conduct Authority (FCA).

Fill in our short form and tell us how much you want to borrow and for how long, and we’ll get to work finding the perfect lender for you.

Our services are 100% free for you to use and they save you time otherwise spent trawling direct lender websites.

In the future, can I top up my 12 month loan?

Yes, often you are able to top up your 12 month loan. However, this will depend on your eligibility and the lender’s requirements. We’re on hand to help you with this, so please get in touch if it’s something you’re interested in doing.

Where do I go for help if I’m in financial difficulty?

If you are having financial difficulties or need to speak to someone regarding your financial situation before applying for a loan you can get free and confidential advice from MoneyHelper (formerly The Money Advice Service), National Debtline or debt charity StepChange.