3 Month Loans

A 3 month loan spreads your borrowing across three equal monthly instalments, making repayments straightforward whilst keeping total interest lower than longer loan terms. Whether you’re facing an unexpected bill, urgent car repairs, or covering the gap until your next payday, short-term borrowing over three months offers a balanced approach. You get the breathing room of instalments without stretching debt across many months.

Sunny operates as a credit broker, not a lender. This means we search multiple FCA-authorised lenders in our network to find you the best match for your circumstances. You get access to more options in one place, all whilst benefiting from our 4.5 out of 5 star Trustpilot rating and completely fee-free service. We process over 7,500 quotes daily, helping people right now find the funding they need.

See if you match

Why choose Sunny:

• Soft credit check only – won’t affect your score
• No fees from Sunny
• Compare offers before you commit
• 15-minute funding if approved

Warning: Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk

What Are 3 Month Loans?

A 3 month loan is a short-term borrowing option that you repay through three monthly instalments rather than a single lump sum. Each payment is spread equally across the three months, making budgeting simpler and repayments more manageable than traditional payday loans that require full repayment within 30 days.

These loans suit situations where you need funds quickly but can afford to repay over a slightly longer period. The three-month term strikes a balance between keeping your total interest costs down whilst giving you breathing room to handle unexpected expenses. You’re not tied into debt for six months or a year, yet you avoid the pressure of repaying everything in one go.

Typical uses for 3 month loans include covering emergency repairs, unexpected medical expenses, essential household appliances breaking down, or bridging a temporary income gap. The fixed repayment schedule helps you plan ahead, knowing exactly what you owe and when each payment leaves your account.

With Sunny, you can borrow between £100 and £2,500 over three months, with each lender offering Representative 89% APR. The rate you’re offered depends on your personal circumstances, with rates ranging from 9.3% to 1,721% APR based on credit history, income, and affordability. Because we’re a broker, we search multiple lenders to find you suitable options, increasing your chances of approval compared to applying to a single lender directly.

How 3 Month Loans Work

The application process is straightforward and designed to get you answers quickly. Here’s what happens when you apply through Sunny:

1. Apply online: Complete our simple online form in around two minutes. We’ll ask for basic details including your employment status, income, and what you need to borrow. Your application is processed immediately, and we start searching our network of FCA-authorised lenders right away.

2. Soft credit check: We use a soft search first, which lets us check your eligibility without leaving a mark on your credit file. This means other lenders won’t see it and it won’t affect your credit score. Only if you accept a loan offer will the chosen lender complete a full credit check.

3. Compare your matches: If we find suitable lenders, we’ll show you the offers available. You can compare loan amounts, monthly repayments, total costs, and terms. There’s no pressure to accept any offer, and you can take time to decide which option works best for your budget.

4. Choose and complete: Once you’ve selected a loan offer, you’ll complete the full application directly with that lender. They’ll verify your details, conduct an affordability assessment, and complete a full credit check at this stage. If approved, you’ll receive a clear agreement showing your repayment schedule.

5. Receive your funds: Most lenders can transfer approved funds within 15 minutes of final approval, with same-day transfers standard for applications completed during business hours. The money arrives directly in your UK bank account, ready to use for whatever you need.

Throughout this process, you remain in control. You’re never obligated to accept an offer, and our service is completely free to you. If you’re also considering other repayment periods, you might want to explore 6 month loans for lower monthly payments or even payday loans with more flexible terms.

How Much Do 3 Month Loans Cost?

Understanding the true cost of borrowing is essential before you commit. All lenders in our network display costs clearly, with Representative 89% APR as the standard rate. Your actual rate may differ based on your circumstances, with the range spanning from 9.3% to 1,721% APR.

Representative Example: If you borrow £1,000 over 3 months at 89% APR (fixed), you’d make 3 monthly payments of £381.58. The total amount repayable would be £1,144.74, meaning you’d pay £144.74 in interest.

For smaller amounts, the costs adjust accordingly. Borrowing £500 over three months at the same rate would mean monthly payments of around £190.79, with a total repayment of £572.37 including £72.37 interest.

Why do rates vary so much? Lenders assess your individual circumstances including credit history, income stability, existing financial commitments, and affordability. Someone with excellent credit and high income typically receives lower rates, whilst those with past credit issues or lower incomes may face higher rates to reflect increased lending risk.

The three-month term actually works in your favour cost-wise. Because you’re borrowing for a shorter period, you pay less total interest compared to spreading the same loan over 6 or 12 months. For example, that same £1,000 borrowed over 12 months at 89% APR would cost around £843.60 in interest, significantly more than the £144.74 you’d pay over three months.

All lenders allow early repayment without penalties. If your financial situation improves and you can pay off the loan sooner, you’ll save on interest charges. This flexibility helps you minimise costs whilst maintaining manageable monthly payments during the agreed term.

Who Can Apply for 3 Month Loans?

Our partner lenders have straightforward eligibility requirements designed to protect both you and them. To apply for a 3 month loan through Sunny, you’ll need to meet these basic criteria:

• Age: You must be at least 18 years old
• Residency: You need to be a UK resident with a UK address
• Income: You must earn at least £500 per month after tax from employment, self-employment, or a combination of employment and benefits
• Bank account: You need an active UK bank account and valid debit card
• Employment: You should have stable income, whether from full-time, part-time, or self-employment
• Credit status: You must not currently be bankrupt or subject to an IVA (Individual Voluntary Arrangement)
• Address history: You’ll need to provide three years of UK address history

What about bad credit? Past financial difficulties don’t automatically disqualify you. Many lenders in our network specialise in helping customers who’ve been turned down by high-street banks. They look at your current affordability and circumstances, not just your credit score. If you’ve had credit issues previously, you might find our bad credit loans information helpful.

Lenders conduct affordability assessments to ensure you can comfortably manage repayments alongside your existing commitments. They’ll review your income, regular outgoings, and other financial obligations. This protects you from borrowing more than you can realistically repay, which is a key part of responsible lending.

We can’t guarantee approval because each lender makes independent decisions based on their criteria and your specific circumstances. However, our broker model increases your chances because we connect you with multiple lenders rather than limiting you to a single option. Even if one lender declines, another in our network might approve your application.

Why Use a Broker Like Sunny?

You might wonder whether to apply directly to a lender or use a broker like us. There are genuine advantages to the broker approach that can save you time, protect your credit score, and increase your approval chances.

Access to multiple lenders: Rather than applying to lenders individually, Sunny searches our entire network on your behalf. This gives you exposure to various lenders with different criteria, significantly improving your chances of finding a suitable match. What one lender declines, another might approve.

One application, multiple options: You fill out one form instead of repeating the same information across multiple lender websites. We handle the searching, matching, and presenting of options. This saves considerable time and effort, especially when you’re dealing with an urgent financial need.

Soft credit check first: When you apply through Sunny, we use soft searches to check eligibility. This means you can see what’s available without affecting your credit score. Only when you accept a specific loan offer does that lender complete a full credit check. This protects your credit file from multiple hard searches that could lower your score.

No fees, ever: We never charge customers for our brokerage service. Lenders pay us a commission when you successfully take out a loan, but this doesn’t increase your costs. The APR and terms you see are exactly what you’d get applying directly to that lender. Our fee-free promise is genuine and applies to everyone.

FCA protection across all lenders: Every lender in our network is authorised and regulated by the Financial Conduct Authority. This ensures strict standards for responsible lending, fair treatment, and transparent pricing. You get these protections regardless of which lender you match with.

Established track record: Over 1 million customers have used Sunny since 2022, and our 4.5 out of 5 star Trustpilot rating reflects genuine experiences. We process over 7,500 quotes every day, demonstrating active usage and customer trust. This volume of experience means we understand what works and how to help customers find suitable lending solutions.

The broker model particularly benefits people with less-than-perfect credit, lower incomes, or non-standard circumstances. Instead of being automatically rejected by a single lender’s rigid criteria, you get matched with lenders whose requirements align with your situation. For similar flexibility with different loan amounts, consider exploring our £500 loans options.

Fast Payoff: Benefits of Shorter Loan Terms

Choosing a 3 month loan over longer alternatives offers several practical and financial advantages worth considering before you apply.

Lower total interest: The shorter your loan term, the less interest you pay overall. Three months means fewer interest charges accumulating compared to spreading the same amount over six or twelve months. This makes 3 month loans more cost-effective when you can manage slightly higher monthly payments.

Faster debt freedom: Being in debt for 90 days instead of 6-12 months means quicker financial freedom. You resolve the temporary cash flow issue and move on, rather than carrying debt for extended periods. This psychological benefit shouldn’t be underestimated, especially if you find debt stressful.

Simpler budgeting: Three equal monthly payments are easy to track and plan for. You know exactly when you’ll be debt-free, and the fixed schedule integrates naturally into your monthly budget. There’s no complex repayment structure or long-term commitment to manage.

Less risk from changing circumstances: Life changes quickly. The shorter your loan term, the less exposure you have to potential income changes, unexpected expenses, or other financial disruptions. If something goes wrong in month four, you’ve already cleared a 3 month loan but would still be repaying a longer one.

Build credit faster: Successfully repaying a loan improves your credit history. With a 3 month loan, you demonstrate responsible borrowing and complete repayment in a quarter, potentially boosting your credit score sooner than longer terms would.

Suitable for temporary needs: Three months perfectly matches temporary financial gaps. If you’re waiting for a tax refund, expecting a bonus, or covering costs until income stabilises, three monthly payments bridge that gap without unnecessary long-term commitment.

That said, 3 month loans aren’t right for everyone. The higher monthly payments compared to longer terms might strain tight budgets. If you need lower monthly commitments, a 12 month loan spreads costs more affordably, though you’ll pay more total interest. The key is choosing the term that balances monthly affordability with total cost based on your specific circumstances.

What to Consider Before Applying

Responsible borrowing means making informed decisions that genuinely work for your financial situation. Before applying for a 3 month loan, think through these important considerations:

Can you afford the monthly payments? Work out your monthly income and regular expenses. The loan repayments need to fit comfortably within what’s left over. Don’t forget about irregular costs like annual insurance or car tax that might fall during the three-month period. If the payments would stretch you too thin, either borrow less or consider a longer term.

Do you only need to borrow what’s necessary? It’s tempting to borrow more than you strictly need when it’s available, but every extra pound borrowed costs you interest. Calculate your actual requirement and stick to that amount. Borrowing £1,000 when you only need £700 wastes money on unnecessary interest charges.

Have you explored alternatives? Before committing to any loan, consider whether other options might work better. Could you borrow from family or friends interest-free? Can you negotiate payment plans with creditors? Might a credit union offer better rates? Do you have savings you could use temporarily? Loans should be a last resort, not the first option.

What happens if your circumstances change? Think about job security, upcoming expenses, or potential income changes during the three-month period. If there’s significant uncertainty, you might want to wait or borrow less to reduce risk. Remember that missed payments damage your credit score and can lead to additional charges.

Do you understand the total cost? Make sure you’re clear about the APR, total amount repayable, and interest charges. Don’t just focus on whether you can afford the monthly payment. Understanding the full cost helps you make an informed decision and compare different loan options effectively.

If you’re already struggling with existing debt, taking out another loan isn’t the answer. Free debt advice is available from organisations like StepChange and Citizens Advice. They can help you explore debt management options, negotiate with creditors, and create sustainable repayment plans.

For emergency situations where you need funds immediately, our emergency loans page provides specific guidance on urgent borrowing. Remember that short-term loans are designed for temporary financial gaps, not ongoing money problems.

How Sunny Protects You

Your safety and security matter to us. We’ve built protections into every stage of our service to ensure you’re treated fairly and your information stays secure.

FCA authorisation: Sunny operates as an Appointed Representative of Flux Funding Limited (FRN 806333), which is authorised and regulated by the Financial Conduct Authority. This means we follow strict regulatory standards covering how we treat customers, advertise our services, and conduct business. All lenders in our network are similarly FCA-authorised, ensuring consistent protections across the board.

Data protection: Your personal and financial information is encrypted and stored securely. We only share your details with lenders you choose to apply to, and only after you’ve given permission. We never sell your data to third parties or use it for purposes beyond matching you with suitable lenders.

Secure application: Our application process uses bank-level encryption to protect your information during transmission. You can safely provide sensitive details knowing they’re shielded from unauthorised access. We regularly update our security measures to maintain the highest standards.

No credit score impact from checking: The soft credit search we use to check eligibility leaves no mark on your credit file visible to other lenders. Only you can see this search when you view your own credit report. This lets you explore options freely without worrying about damaging your credit score.

Right to withdraw: UK consumer credit regulations give you the right to withdraw from a credit agreement within 14 days of signing, though you’ll need to repay any funds already transferred plus interest accrued. This cooling-off period provides a safety net if you change your mind.

Responsible lending standards: Lenders in our network must follow FCA responsible lending requirements. This includes conducting affordability assessments, providing clear information about costs, and refusing applications where lending could cause financial harm. These standards protect you from unaffordable borrowing.

Complaints process: If something goes wrong or you’re unhappy with our service, we have a formal complaints procedure. We take complaints seriously and work to resolve issues quickly. If we can’t resolve your complaint, you can escalate to the Financial Ombudsman Service for independent review.

The Application Process

Knowing what to expect makes applying less stressful. Here’s a detailed walkthrough of what happens when you apply for a 3 month loan through Sunny.

What information you’ll need: Have these details ready before starting your application to make the process smooth: full name and date of birth, current address and three years of address history, employment status and monthly income, UK bank account details and debit card, approximate monthly expenses and existing credit commitments. You won’t need to provide documents initially, though lenders may request bank statements or proof of income later in the process.

Application time: The initial form takes around two minutes to complete. Most questions have dropdown menus or simple text boxes. Once submitted, we search our lender network immediately, typically taking less than 60 seconds to identify potential matches.

Initial decision: You’ll see an instant initial decision showing whether we’ve found suitable lenders. If we have matches, you’ll see the loan offers available including amounts, terms, monthly payments, and total costs. If we can’t find suitable matches, we’ll explain why and suggest alternative steps you might take.

Choosing your offer: Take time to compare the options presented. Look at monthly affordability, total cost, lender reputation, and specific terms. There’s no time limit on this decision. You can come back later to review your matches if you’re not ready to proceed immediately.

Completing with your chosen lender: When you select an offer, you’ll move to that lender’s application system to complete the full process. They’ll verify your details, conduct a thorough affordability assessment, and complete a full credit check at this stage. This credit check will appear on your credit file and may affect your score.

Final approval: The lender reviews your complete application and makes their final decision. Approval isn’t guaranteed even at this stage because they conduct detailed affordability checks. If approved, you’ll receive a clear loan agreement showing exactly what you’re committing to.

Funding timeframe: Most lenders can transfer funds within 15 minutes of approval during business hours. Same-day funding is standard for applications approved before late afternoon. Applications submitted evenings or weekends are typically processed the next working day, with funds transferred once approved.

Setting up repayments: Your lender will arrange automatic repayments from your bank account on agreed dates. You’ll choose payment dates during the application, ideally aligning with when you receive income. The lender sets up a Continuous Payment Authority so payments are collected automatically without you needing to take action.

Throughout this process, you can contact us or your chosen lender with questions. We’re here to help you understand each step and ensure you’re comfortable proceeding. For those seeking even faster access to funds, our instant loans page explains rapid approval options.

Related Loan Options

3 month loans work for most situations, but your needs might be different. Want to clear debt even faster? Payday loans offer flexible repayment alternatives with terms up to 36 months. Need lower monthly payments? 6 month loans balance affordability with reasonable total cost. Facing an urgent crisis right now? Emergency loans target time-sensitive situations with rapid approval. Only need to borrow a small amount? Small loans from £100 prevent over-borrowing for minor expenses. Whichever you choose, you get soft credit checks, no fees, and multiple lenders compared.

Payday Loans

6 Month Loans

Emergency Loans

Small Loans

Find your match today

Why you can count on Sunny:

• Over 1 million customers since 2022
• 4.5 out of 5 stars on Trustpilot (7,385 reviews)
• 7,500+ daily quotes processed
• FCA-authorised broker and lenders
• Never any fees from Sunny
• Soft credit check won’t affect your score

Warning: Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk

Representative Example: Borrowing £1,000 over 18 months at 89% APR (fixed) means 18 monthly payments of £102.42. Total amount repayable: £1,843.60. Total interest: £843.60. Interest rate: 89% per annum (fixed).

Important Information: Sunny (Upward Finance Limited, Company No. 11365247) is an Appointed Representative of Flux Funding Limited (FRN 806333), which is authorised and regulated by the Financial Conduct Authority. Registered office: 7 Bell Yard, London, WC2A 2JR. We are a credit broker, not a lender. We introduce customers to FCA-authorised lenders and do not make lending decisions. We never charge customers any fees for our service.

If you’re struggling with debt, free help is available from StepChange, Citizens Advice, and MoneyHelper. Don’t face financial difficulties alone.