The 12 Month Payday Loan has quickly grown in popularity amongst borrowers in the UK. Unlike traditional short-term payday loans, 12 month payday loans allow a person to extend the repayment period beyond the person’s next salary payment. Instead, the borrower can make regularly scheduled payments towards the interest and principle across an entire 12 month period. This shift is encouraged by the Financial Conduct Authority (FCA) as it provides a way to make short-term payday loans more manageable for a variety of borrowers.
Emergence Of 12 Month Payday Loans
12 Month Payday Loans are a form of instalment loans. Instalment loans are designed to be repaid over a longer period of time, with the total owed being split into monthly payments. The available terms may vary from lender to lender, and may be contingent on the precise amount being borrowed. While the longer repayment period may ease immediate financial difficulties, repaying over a longer term can result in a higher amount of interest being paid overall in comparison to some options with shorter terms.
The increasing popularity of instalment loans is partially due to the extended repayment time period being offered. This allows borrowers who would not be able to repay the full amount on their next salary payment to spread the payments out, making each monthly payment more manageable than a single, lump sum payment. Additionally, many loans allow for early repayment, so, should the borrower be able to make larger payments, the borrower can repay the loan more quickly while also lowering the amount of total interest being paid.
There are a number of direct payday loan lenders that offer 12 month payday loans. Often, the 12 month payday loan plans are proving to be more popular than some of the more traditional payday loan offerings, which can create greater levels of competition within the field. Here are a few of the Lenders List partners who offer instalment loans up to 12 months –
Popular 12 Month Payday Loan Lenders
- Satsuma Loans – Offers loans from 13 weeks to 52 weeks. New customers can apply for loans in amounts up to £1000. For more details about this lender, please go our Satsuma Individual page
- Peachy Loans – Offers loans repayable over 12 months with new customers being eligible to apply to loans up to £700. For more details about this lender, please visit our Peachy Loans Individual Page
- Different Money – Offers loans in amounts up to £2500 that can be repaid over a period of up to 12 months. For those interested in borrowing smaller amounts, the 12 month option may not be available. For more details regarding this lend, please see our Different Money individual Page
Bad Credit 12 Month Payday Loans
Certain lenders are open to providing 12 month payday loans to individuals who may have struggled with their credit rating. While credit checks are often a common practice within the lending community, not all lenders use the same minimum qualifications in order to determine if a loan will be granted.
Most loan applications are considered on a case by case basis, so those with low credit scores may not be automatically rejected by the application system. Other information regarding your income and current employment, as well as the outcome of various affordability calculations, may also be used in the determination. It is important to understand that those individuals with lower credit scores, if they are approved for a loan, are often charged higher interest rates than individuals who have better qualifications. This can make a loan more costly for a person with bad credit, especially over longer repayment terms,