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For the money-savvy amongst us, shopping for a cheap loan makes perfect sense. However, simply searching for a ‘cheap loan’ could lead you to a dead end, as the final cost of your loan is dependent on a range of factors. In fact, if you’ve searched for a cheap loan you may have made a mistake, as really, the best loan for you may not revolve around cost.

Here you’ll find all you need to know about cheap loans at Sunny.

When someone refers to a ‘cheap loan’, they typically mean a situation where a lender charges a lower than average interest rate for credit. These are usually granted when a borrower has a good credit history.

Short term loans, compared to some other forms of credit, are not a cheap way to borrow money. However, our speedy application process, the quick funding of our lender partners, and the flexibility to repay early at any time to save on interest can make a loan a cost-effective way to solve an urgent financial need.

In this guide, we’ve looked into cheap loans and what is factored in when you’re looking for the best rate. Read on to find out more.

Eligibility for cheap money loans

When you apply for any loan, you’ll need to ensure you are eligible, by which we mean you meet that lender’s lending criteria. Here at Sunny, we have a list of requirements our customers must meet to be able to apply for loans

You must be:  

  • At least 18 years old 
  • A UK resident 
  • Receiving a regular income
  • Agree to a credit and affordability check 
  • Must not be bankrupt or otherwise insolvent 

If all these things are true of you, you can go ahead with your application for a cheap payday loan

Representative 89% APR

Representative Example: Borrowing: £1000 for 18 months, Total Repayable: £1853.43, Total Interest: £853.43, Interest Rate (Variable): 89.9%. Rates between 9.3% APR and 1721% APR – your no-obligation quote and APR will be based on your personal circumstances. Loan term lengths from 3 to 36 months. Subject to lender’s requirements and approval.

Sunny Loans is a registered trading name of Upward Finance Limited, who is an introducer appointed representative of Flux Funding Limited, who is a credit broker, not a lender. Loan repayment terms are 3-36 month loans.

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

Cheapest loans information hub

If you’re wondering how to get your hands on the cheapest loan available, we’ve answered some of the main questions around this topic. However, if you can’t find the answer you’re looking for take a look at our FAQ section here on the site.

  • Generally, the cost of the loan you take out – or your ability to get a loan at all – is dependent on your credit history. How much you need to borrow and how long you intend to borrow for will also play a role in this. For example, a lower amount with a shorter repayment period may see you pay less interest, resulting in a slightly cheaper loan. To improve your chances of obtaining a loan in the future, you should make all of your repayments on time and repay the sum you have borrowed in its entirety. 

  • It’s a good idea to shop around before choosing a loan, this can help you find a lender with the best rate for your situation. Look at their interest rates and if they charge fees to determine the overall cost of the loan.

  • If you have bad credit you may be required to pay more interest because lenders could see you as a risk. Your credit score doesn’t necessarily affect the interest rate a lender will apply to your loan, although if you have bad credit, you may not be eligible to borrow large amounts of money straight away. Whatever your situation, you can still shop around for the best deal available to you, even with a poor credit history, and find the cheapest loan for your situation. 

More information on cheap loans

With so many loans out there, it can feel like a challenge to find the cheapest one. But choosing a short-term loan is all about selecting a product that is right for you and your current situation. 

If you’re trying to find a loan that’s more affordable, then it’s definitely worth doing some research. APRs (annual percentage rates) can be a useful benchmark to understand how the overall cost varies between lenders. However, it’s important to keep in mind that APR is a representation of the cost of borrowing over a year and not for a short period – which is generally between one and six months. This means that the percentage you see isn’t necessarily the percentage you’ll pay if you borrow for a short amount of time. 

As with any loan, it’s essential you do your research before applying. It’s understandable that you want to find the cheapest loan available, but sometimes what might appear cheap at first glance can come with higher costs overall and may not offer you all the features and flexibility you desire. It’s important to look for a loan that suits your circumstances as well as your budget – as different lenders may charge the same interest rates, but will likely offer different benefits that could influence your choice. 

How a cheap loan from Sunny can help

At Sunny, we know you want the best deal, which is why our partner's lender panel offer loans that come with a number of great extras. For example, we don’t charge fees and we believe in being totally transparent with our customers. Here, we’ve broken down some of our features to help you make your decision.

Lenders can get your money to you fast - with a 24-hour turnaround once you apply. In most cases, they can have the money in your bank on the same day#.

We don’t charge fees, so there’s no need to worry about upfront application charges or admin costs.

You can usually make extra and early payments whenever you like, and save money on interest.

Think Sunny is the right loan introducer for you?

This guide hopefully features all you need to know about finding the cheapest loan. However, if you need further guidance, our customer service team is on hand to support and answer any other questions you have. If you feel confident that Sunny is the right broker for you, hit the apply now button, select how much you want to borrow and receive the emergency cash you need.

Apply now

Looking for alternative lending options?

Payday or short-term loans can be required for a real variety of reasons, so we’ve put together a number of guides on how to get this type of loan for a range of situations.

Alternative Loans