A Small loan is a form of loan in which you can borrow a low value of money. Small loans can help you out in some tricky financial situation where you need an extra amount of money. The need for money in this situation isn’t high so going for any form of secured loans would not be feasible.
These loans can be used for the extra financial expense of the month like car repairs, ceiling fixes or any other form of household bills or repairs. Though the amount needed for these expenses is low, you can make use of the money from your weekly budget or savings. However, if you don’t have that amount of cash in hand for taking care of that expense, you can always opt for small loans.
As the amount that you can borrow is low these loans are also known as short term loans or little loans.
How Much Can I Borrow With Small Loans?
As you know that the amount that you can borrow from small loans is of low value. So to answer your question “How Much Can I Borrow With Small Loans”, the simple answer is up to £3,000. There are lenders who provide more than that, however, this depends completely on how good of a credit score you have.
The lowest amount that the lenders can provide is £100. So there is no need to take out a large amount loan now if your need is for a minor expense.
Who Can Borrow a Small Loan?
There are certain eligibility criteria that you need to fit in before applying for little loans. The criterion is as follows:
- The person applying for a small loan should be 18 years and above in age
- They must have a private UK bank account
- They must be a UK resident as well
- Must be a phone owner so the lenders could contact you
When it comes to borrowing people who have a terrible credit history could also apply for small loans. Although the interest rates that they need to repay with will be high than normal. So with a small loan, everyone with a good or bad credit history can borrow.
Pros and Cons of Small Loans
- You can borrow for a small amount
- The application process hardly takes minutes, it’s easy to apply
- People with poor credit and who do not have a guarantor can also apply for this little loans
- It has a high APR, in most cases, they tend to go over 300%
- The repayment of these loans has to be done in a few months (1 – 12 months). So you should apply for small loans only if you can afford to repay in time
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