12 Month Loans

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 12 Month Loans?

A 12 month loan – aka a 1 year loan – is a short-term loan you repay in fixed monthly instalments over one year. Unlike traditional payday loans that demand full repayment in 30 days, spreading your repayments over 12 months creates smaller, more manageable monthly payments that work with your budget. You borrow a fixed amount upfront and repay it gradually throughout the year, making it easier to handle unexpected costs without straining your finances.

With Sunny, you can access 12 month loans from £100 to £2,500 through our network of FCA-authorised lenders. Whether you need £200 to repair a washing machine or £1,500 for urgent car repairs, a 1 year loan gives you breathing room to cover the cost whilst keeping your monthly commitments affordable. The key advantage is balancing reasonable total interest with monthly payments you can actually afford, unlike shorter 3 month terms that demand higher payments or longer 24 month terms that cost more overall.

Many people use 12 month loans for bad credit situations where traditional banks have turned them down. Because Sunny works with lenders who consider your current circumstances rather than just your credit history, past financial difficulties don’t automatically disqualify you. If you need funds quickly for emergency expenses, home repairs, or unexpected bills, a emergency loan with a 12 month term could provide the solution you need.

How 12 Month Loans Work

Getting a 12 month loan through Sunny is straightforward and designed to be stress-free. Here’s exactly what happens:

1. Apply online in minutes
Complete our simple online form with basic details about yourself and how much you’d like to borrow. This takes around 2-3 minutes, and we only ask for information lenders genuinely need to assess affordability. We use a soft credit search at this stage, which means checking your eligibility won’t affect your credit score or leave any visible mark for other lenders to see.

2. Sunny searches multiple lenders instantly
As a credit broker, we search our entire network of FCA-authorised lenders on your behalf. Rather than applying to each lender separately and risking multiple credit checks, you apply once and we do the searching. This gives you access to more options and increases your chances of approval, especially if you’re worried about bad credit loans acceptance.

3. Compare your personalised offers
If lenders want to offer you a 12 month loan, you’ll see your matches within minutes. Each offer shows the loan amount, monthly repayment, total amount repayable, and representative APR. You’re in complete control to compare, consider, and choose the option that works best for your situation. There’s no obligation to accept any offer, and you can walk away at any point.

4. Complete your application with your chosen lender
When you select an offer, you’ll complete the full application directly with that lender. At this stage, they’ll conduct a hard credit search and complete their affordability checks. If approved, you’ll receive a loan agreement outlining all terms, conditions, and repayment details. Read everything carefully before signing.

5. Receive your funds quickly
Once you’ve signed your loan agreement, most lenders transfer funds the same day or within one working day. Some can deliver money to your account in as little as 15 minutes, depending on your bank’s processing times. This speed makes 12 month loans particularly useful for genuine emergencies that can’t wait.

How Much Do 12 Month Loans Cost?

Understanding the true cost of a 12 month loan helps you make an informed decision. At Sunny, we work with lenders who charge a representative 89% APR, though your personal rate may differ based on your circumstances and the lender you’re matched with. APR stands for Annual Percentage Rate, showing the total cost of borrowing including interest and any fees, calculated over one year. This standardised measure helps you compare different loan offers fairly.

Representative example for a 12 month loan:
If you borrow £1,000 over 12 months at 89% APR (fixed), you’ll make 12 monthly payments of £119.50. The total amount you’ll repay is £1,434, which includes £434 in interest. This breaks down to roughly £36 in interest each month on top of repaying the borrowed amount.

For comparison, borrowing the same £1,000 over 18 months reduces your monthly payment to around £102.42, but you’ll pay more interest overall (£843.60 total interest). Borrowing over just 6 months increases your monthly payment significantly to around £205, but you’ll pay less total interest. The 12 month term strikes a balance between affordable monthly payments and reasonable total cost, which is why it’s one of the most popular repayment periods.

The APR you’re offered can range from 9.3% to 1,721% depending on several factors including your credit history, income, existing financial commitments, and the amount you want to borrow. Lenders who specialise in 12 month loans for bad credit may charge higher rates to offset the additional risk, but responsible lenders always ensure repayments remain affordable based on thorough affordability assessments.

One advantage of 6 month loans is lower total interest if you can afford higher monthly payments, whilst spreading costs over longer periods may suit those who need the absolute lowest monthly commitment. The right choice depends entirely on your personal budget and circumstances.

Who Can Apply for 12 Month Loans?

To apply for a 12 month loan through Sunny, you’ll need to meet these basic eligibility requirements:

• Age: You must be at least 18 years old
• Residency: You need to be a UK resident with a permanent UK address
• Income: You must have a minimum net monthly income of £500 from employment, benefits, or self-employment
• Bank account: You need an active UK bank account in your name where funds can be paid
• Credit status: You cannot currently be in bankruptcy or an active insolvency arrangement
• Address history: Lenders typically need your address history for the past 3 years to verify identity

These requirements exist to ensure responsible lending and confirm that any 12 month loan offered to you will be affordable based on your current financial situation. Lenders assess whether you can comfortably afford the monthly repayments alongside your existing bills, rent or mortgage, and other financial commitments.

What about bad credit? Past credit issues don’t automatically prevent you from being considered. Lenders in Sunny’s network who offer 12 month payday loans and similar products look at your current circumstances, not just your credit history. If you have County Court Judgements, defaults, or missed payments in your past, you may still be matched with a lender willing to work with you. Bad credit doesn’t tell your whole story, and many of our 1 million+ customers have successfully found suitable loans despite previous financial difficulties.

However, lenders cannot help if you’re currently bankrupt, in an Individual Voluntary Arrangement, or have a Debt Relief Order. In these situations, taking on new borrowing would be irresponsible and potentially worsen your position. If you’re struggling with existing debt, free confidential advice is available from StepChange and Citizens Advice.

Why Use a Broker Like Sunny for 1 Year Loans?

Using a credit broker rather than applying directly to a single lender offers several important advantages, especially when looking for a 12 month loan that fits your specific circumstances:

Access to multiple lenders through one application
Sunny works with a network of FCA-authorised lenders, each with different lending criteria, rates, and specialties. Instead of researching dozens of lenders yourself and submitting multiple applications, you apply once and we search the entire panel on your behalf. This dramatically increases your chances of finding a suitable offer, particularly if you have a complicated credit history or have been declined elsewhere.

Soft credit check protects your credit score
When you apply through Sunny, the initial eligibility check uses a soft search that won’t affect your credit score. This invisible check lets us show you which lenders are likely to approve you before any hard credit search takes place. Only when you choose to proceed with a specific lender does a full credit check occur. This prevents the damage of multiple hard searches that can harm your credit score and make future borrowing more difficult.

Save hours of comparison time
Comparing 12 month payday loans across different lenders takes significant time and effort. Interest rates, fees, terms, and eligibility criteria all vary. Our technology does this comparison instantly, presenting you with relevant options matched to your circumstances. With over 7,500 quotes processed daily, our system efficiently connects customers with suitable lenders.

Completely free service with no hidden costs
Sunny never charges customers any fees for our brokerage service. When you’re matched with a lender and accept a loan, that lender pays us a referral fee, but this doesn’t increase the cost of your loan or add any charges to your account. What you see in your loan agreement is what you pay, nothing more. This transparent model means using a broker costs you nothing whilst giving you access to far more options.

FCA protection across all partner lenders
Every lender in Sunny’s network is authorised and regulated by the Financial Conduct Authority. This means they all follow strict responsible lending standards, including interest rate caps, clear terms and conditions, and proper affordability assessments. Whether you’re exploring quick loans or longer-term options, you have the same regulatory protections regardless of which lender ultimately provides your loan.

Expert support throughout your journey
Need help understanding your options or have questions about the process? Sunny’s customer support team is here to guide you. With a 4.5 star rating across 7,385 Trustpilot reviews, we’re committed to providing genuinely helpful service that makes borrowing less stressful.

Check your eligibility now

What makes us different:

• Over 1 million customers trust us since 2022
• 4.5 out of 5 stars on Trustpilot with 7,385 reviews
• 7,500+ daily quotes processed
• FCA-authorised broker working with regulated lenders
• No fees from Sunny, ever
• Soft credit check only, won’t affect your score

Budget-Friendly Monthly Payments You Can Actually Afford

The defining advantage of a 12 month loan is creating genuinely affordable monthly payments that don’t stretch your budget to breaking point. By spreading repayments across a full year, you significantly reduce the monthly commitment compared to shorter 3 month or 6 month terms, making it easier to manage your finances whilst dealing with an unexpected expense.

Consider this practical example: You need £800 to repair your car after it failed its MOT. With a 3 month loan, your monthly repayments might be around £350, which could be difficult to manage alongside your rent, bills, and other expenses. With a 12 month loan, that same £800 might cost you around £100 per month, a far more manageable amount that lets you keep up with all your other financial commitments.

This affordability factor is crucial for responsible borrowing. Lenders assess whether you can genuinely afford the repayments based on your income minus your essential expenses. A 12 month term increases the likelihood of approval because the lower monthly payments are more likely to fit within your disposable income. This is particularly valuable if you’re considering 12 month loans for bad credit, as it demonstrates to lenders that you’re borrowing sensibly and sustainably.

The budget-friendly nature of 12 month repayments also provides breathing room for unexpected circumstances. If your hours are reduced at work one month or you face another unexpected bill, the lower monthly payment is easier to prioritise and maintain. This reduces the risk of missed payments, which protects both your credit score and your relationship with the lender.

For those who need even lower monthly payments, extending to an 18 month term might be worth considering. However, remember that whilst longer terms reduce monthly payments, they increase the total interest you’ll pay over the life of the loan. The 12 month option often represents the sweet spot, offering meaningful affordability without excessive total cost.

What to Consider Before Applying for a 12 Month Loan

Taking out any loan is a serious financial commitment that requires careful consideration. Before applying for a 12 month loan, ask yourself these important questions to ensure you’re making the right decision:

Do you genuinely need to borrow?
Consider whether the expense is truly urgent or could wait whilst you save. If your washing machine breaks, that’s genuinely urgent. If you want to book a holiday, saving up would be wiser than borrowing. Loans should address genuine needs, not wants.

Have you explored alternatives?
Could you borrow from family or friends interest-free? Do you have savings you could use instead? Could you negotiate a payment plan directly with the company you owe money to? Using your own savings or interest-free options will always be cheaper than borrowing with interest, even at competitive rates.

Can you afford the monthly repayments?
Calculate your disposable income after all essential expenses like rent, bills, food, and transport. Can you comfortably afford the monthly loan repayment on top of these? If money would be extremely tight, you might struggle to keep up with payments, which could harm your credit score and lead to additional charges.

Have you compared the total cost?
Look beyond the monthly payment to understand the total amount you’ll repay, including all interest. For a 12 month loan, this total cost should be clearly displayed before you commit. Compare this against shorter or longer terms to ensure 12 months is genuinely the best option for your circumstances.

What happens if you can’t pay?
Missed or late payments damage your credit score and may result in additional charges from the lender. If you’re already struggling financially, taking on new debt could make things worse. Be honest with yourself about whether you can maintain repayments for the full 12 months.

Could you manage with a smaller amount?
Only borrow what you actually need to cover the expense. If you need £500, don’t borrow £1,000 just because you’re approved for more. Every extra pound borrowed costs you more in interest. Being disciplined about borrowing amounts protects your financial health. Consider whether small loans of under £500 might better suit your actual needs.

If you’re already dealing with problem debt or struggling to meet current financial commitments, borrowing more may not be the answer. Free, confidential debt advice is available from organisations like StepChange, National Debtline, and Citizens Advice. These charities can help you explore all your options and find the best path forward for your unique situation.

How Sunny Protects You

Your safety and security are fundamental to everything we do at Sunny. Here’s exactly how we protect you throughout the loan process:

Full FCA authorisation and regulation
Sunny operates as an Appointed Representative of Flux Funding Limited (FRN 806333), which is fully authorised and regulated by the Financial Conduct Authority. This means we follow strict rules designed to protect consumers, including clear communication, fair treatment, and responsible lending practices. Every lender in our network also holds FCA authorisation, so you’re protected by the same regulatory standards regardless of which lender provides your loan.

Your data is secure and protected
We use bank-level encryption to protect all the personal and financial information you share with us. Your data is stored securely, never shared with unauthorised parties, and only passed to lenders you choose to apply with. We comply fully with UK data protection regulations and treat your privacy with the seriousness it deserves.

Soft credit check won’t damage your score
The initial eligibility check Sunny’s partner lenders perform is a soft search that leaves no mark on your credit file. Other lenders can’t see this search, and it has absolutely zero impact on your credit score. Only if you choose to proceed with a specific lender and make a full application will a hard search occur, and you’ll be clearly informed before this happens.

No hidden fees or surprise charges
Sunny never charges customers any fees for our service. We don’t charge application fees, arrangement fees, service charges, or any other costs. The lenders we work with must clearly display all costs upfront, including the interest rate, monthly payment amount, and total repayable. What you see in your loan agreement is what you pay.

You’re never obligated to accept an offer
Seeing loan offers through Sunny creates no obligation whatsoever. You can compare options, think things over, and walk away at any time without penalty or pressure. Even after accepting an offer, you have a 14-day cooling-off period under the Consumer Credit Act, giving you the right to withdraw from the agreement.

Responsible lending is non-negotiable
All lenders in our network must conduct thorough affordability assessments to ensure any loan offered is genuinely affordable for your circumstances. They consider your income, essential expenses, and existing financial commitments. If you can’t afford the repayments, responsible lenders won’t approve the loan. This protects you from taking on debt you can’t manage.

Clear information helps you decide
We believe knowledge empowers better decisions. That’s why we provide clear, jargon-free information about how 12 month loans work, what they cost, and what to consider before applying. We never use pressure tactics or false urgency to push you into borrowing before you’re ready.

The Application Process: What You’ll Need

Applying for a 12 month loan through Sunny is designed to be quick and straightforward. Here’s what you’ll need to have ready to complete your application efficiently:

Personal details:

• Your full legal name as it appears on official documents
• Your date of birth
• Your current UK address and previous addresses for the past 3 years
• Your contact details including mobile number and email address

Employment and income information:

• Your employment status (employed, self-employed, receiving benefits)
• Your employer’s name and contact details if employed
• Your net monthly income (the amount that reaches your bank account after tax)
• How you receive your income (bank transfer, cash, etc.)

Bank account details:

• Your bank name
• Your account number and sort code
• How long you’ve held this account

Expenditure information:

• Your monthly rent or mortgage payment
• Estimated monthly spending on bills, food, transport, and other essentials
• Details of any existing loans, credit cards, or financial commitments

The loan details you want:

• How much you want to borrow (£100 to £2,500)
• Your preferred repayment term (we’ll show options including 12 months)
• The purpose of the loan (this helps lenders understand your needs)

The entire application typically takes between 2 to 3 minutes to complete, and you’ll receive an instant decision on whether you’ve been matched with lenders. If you’re matched, you’ll see your personalised offers immediately, allowing you to compare and choose the best 12 month loan for your circumstances.

Most lenders can transfer approved funds the same day, with some capable of 15-minute transfers to your bank account. However, actual timing depends on your bank’s processing speeds and when you complete your application. Applications submitted late in the evening or at weekends may not be processed until the next working day.

If you need immediate funds for a genuine crisis, same day loans with 24/7 processing might be worth exploring, though 12 month repayment terms offer superior affordability for most situations.

Related Loan Options

12 month loans work for most situations, but your needs might be different. Need to clear debt faster with higher payments? 6 month loans finish quickly whilst still spreading costs. Want even lower monthly commitments? 3 month loans reduce what you pay each month even further. Facing a genuine crisis that requires immediate action? emergency loans combine speed with flexible repayment options. Only need a modest amount under £500? small loans prevent unnecessary borrowing and keep total interest minimal. Whichever you choose, you get soft credit checks, no fees, and multiple lenders compared.

6 Month Loans

3 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 with 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 APR: 89%

Representative example: Borrowing £1,000 over 18 months at 89% APR (fixed) means 18 monthly payments of £102.42. Total repayable: £1,843.60. Total interest: £843.60.

Need help with debt? Free, confidential advice is available from StepChange, National Debtline, and Citizens Advice.