Payday loans information hub

Many people have differing ideas of what a payday loan is. Here, we’ve answered some of the most common questions around this money product to help you better understand what they are and when you might need one.

  • When you apply for a loan with Sunny, you’ll receive an instant decision. This confirms your likelihood of being accepted for the loan or not – and we also use soft search***, which means we check your credit report without leaving a mark. If you are approved for your loan, you will receive confirmation of the amount and when this will be paid into your bank account. We strive to transfer all loans that have been accepted within just 15 minutes. You’ll also be sent details on how to create and access your Sunny loans account where you can monitor payments and ensure you’re on top of things moving forward.

  • Many people in the UK – 35% of households according to the Money charity – don’t have enough savings to cover an unexpected cost. This is where a payday loan can come in. These loans can be used to bridge the gap between an unexpected expense and payday. They are usually for small amounts and come with high-interest charges, so you would only take one on in an emergency and if you are confident you will be able to repay shortly after. 

  • Payday loans are suitable for people from all kinds of credit backgrounds. Even if you have a lower credit score, you may still be eligible to borrow with a payday loan. However, if you have poor credit history, you may find that you cannot borrow as much as you perhaps would like, and may face higher interest rates because of this.

  • Yes. As part of our commitment to responsible lending, we carry out credit and affordability checks on all applications submitted to us. This assists with fraud prevention and also ensures we only approve applications from people who we believe will be able to repay what they borrow. You can learn more about credit checks and how we use the information provided to us by Credit Reference Agencies (CRAs) by visiting the “Your Privacy” section of our website.

  • Yes, Sunny is a direct lender, not a broker. This means that when you apply for a payday loan you apply directly to us, then we transfer you the money if you are approved. Although Sunny is a direct lender, we don’t consider ourselves to be a payday loan company. Rather, we offer short-term loan options that provide more benefits than a standard payday loan. 

  • In the past, the interest and fees on payday loans were unregulated and some companies placed very high interest rates on these products. This lead to people finding themselves owing a lot more than they initially budgeted for. Here at Sunny, we strive to offer “life support” to those who need it. This is why we’ve never charged fees on our payday loans,and encourage you to repay early to save money on interest. 

  • Applying for a Sunny loan is very straightforward via our simple online application, which delivers a decision in minutes. If your loan is approved, the money you borrow will be sent to your bank in as little as 15 minutes that same day. However, we also give you five days to change your mind and repay the amount borrowed with no interest and no questions asked, just to give you further peace of mind*. 

More information on payday loans

Payday loans can also go by the name of ‘payday advance’ or ‘cash advance’ loans. They are usually taken out to cover emergency expenses and unexpected payments. An unforeseen car repair or a boiler breakdown may be a costly but crucial job. They are generally best suited to a situation where you need money straight away and you are confident you will be able to pay it back on payday. However, it’s advised to only take out a payday loan when completely necessary. It’s also important you try to avoid taking them out on a regular basis, as they are not designed as a solution for a long-term borrowing need.

At Sunny, we consider payday loans essential life support to people faced with unplanned or emergency expenses. To minimise the burden at often difficult times, we don’t charge fees and also offer the option to return the loan, interest-free, if for any reason you change your mind, or find you don’t need the loan after all, within five days*.

If you are considering a payday loan, we recommend waiting to apply until you know the exact amount you want and have compared various lenders, to be sure you’re getting the best deal.

Payday loan example

Here, we’ve broken down an example of a payday loan and what you’ll pay in total, with interest, depending on your loan amount and the repayment period you’ve agreed to. Most people aim to repay a payday loan as quickly as they can, to minimise the impact of the higher interest rates they may come with.

Try out the calculator below to see what could work for you.

Monthly rate
Based on a
30 day month
Loan term
The loan term is fixed but you can repay early at any time
The loan term is fixed but you can repay early at any time
Representative example
£ for months
%pa (fixed)

How a Sunny loan can help

Sunny is different from some other loan companies because we have no extra fees. This means we have no charges for late payments and no administration fees. All you are expected to pay back is the original loan amount, plus interest.

We believe in being honest, transparent and fair throughout the whole loan process and we aim to act as a lifeline for our borrowers. This means that if someone is having trouble making their repayments, we will work with them to help them get back on track.

  • If your payday loan is approved, the money will arrive in your bank account in as little as 15 minutes.

  • If you change your mind, you can call to cancel your loan within five days of taking it out and repay only the amount borrowed with no fees or interest*.

  • Once you take on a loan with Sunny, you have total control. We give you access to an online portal that allows you to manage your payments.

What Sunny customers are saying

When it comes to our customers, they come first. We believe in offering “life support” for those moments when you need emergency cash, and always at a fair rate. If you’re looking for a responsible lender, read our reviews and check out our Trustpilot score** below to discover why Sunny could be the right lender for you.

Looking for alternative lending options?

Browse our range of loan guides below. Each one is designed to help you find the right solution for your needs and financial situation. Should you need further guidance, you can also see our frequently asked questions section.

Terms & Conditions

***Soft search is currently only available to new customers. Our eligibility check will assess whether you meet our lending criteria. Even if you are eligible, we may still require proof of ID and/or proof of income before we approve the loan.