12 Month Loans

Learn more about 12-month loans in this guide from Sunny

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If you need to borrow money for an emergency expense, spreading the cost over 12 months could be beneficial for your budget and general financial situation. If you’re considering a payday loan then it’s worth noting that you won’t be able to pay back your loan over the course of one year. Instead, you are limited to a shorter time frame, such as 35 days to three months.

How Do 12 Month Loans Work?

Loans over 12 months are essentially the repayment period for your selected loan amount. When you apply to borrow money, you can select the repayment period of 12 months, meaning means you will make monthly payments over the course of the year until your loan is cleared. Choosing a 1-year loan can be useful in helping to pay off your loan in an easy to manage time frame.  However, you can choose to pay your loan off early if you wish. At Sunny, we offer access to flexible payment plans with no fees.


How Much Can I Borrow With A 1 Year Loan?

For 12-month payday loans, you can borrow as little as £50 to as much as £5,000. Here at Sunny, you can apply for loans by value so you can get the exact amount you need to cover any expense, emergency, or unexpected bill. Just remember that when applying online you only borrow what you need so you avoid higher repayment interests. As well the interest will be naturally higher due to the longer period.

In this case, a short-term loan is likely the best option – after you’ve exhausted all other possibilities. In this guide, we’ve taken a look at 12-month loans and what to consider before you go ahead and apply.

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 www.moneyhelper.org.uk.

Eligibility for a 12 month loan

If you’re wondering if you’re eligible for a loan that is repayable over one year, then it’s a good idea to check each lender’s criteria carefully. Here, we’ve laid out eligibility requirements which are fairly typical across the market.


  • You must be 18 years old or above
  • You must be a UK resident
  • You must provide three years’ worth of evidence of your address
  • You must have a regular income
  • You must have a bank account and debit card
  • You must have an email address and mobile phone number
  • Must not be bankrupt or otherwise insolvent


Bear in mind that even if you tick all of these eligibility requirements, this doesn’t guarantee that you will be accepted for a one year loan.

You could have the money in your bank account today# if you are approved for a 12-month loan.

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Lenders use soft search technology. This means you can apply without damaging your credit score*.

1 Year Loan Information

We've answered some common questions around one year loans that may help when making your decision on who to apply with and the best option for you.

  • A 12 month loan is suited to those who need to borrow larger amounts of money and want to spread the cost over a longer period of time. It can be used to cover expensive emergencies, from buying a new home appliance to covering the cost of travel if you need to reach loved ones last minute. You can use your loan for any reason but it’s important you only take one on if it’s absolutely necessary.

  • No, while this may seem like a good idea, if a lender is offering you a 12-month loan with no credit check, we recommend not to use them, as it might be a scam. All approved and responsible lenders are regulated by the FCA, which means mandatory credit and affordability checks.  Here at Sunny, we work with an FCA authorised credit broker who  have a panel of approved direct lenders, so applying with us means you will get a credit check. Applying for 1-year loans won’t harm your credit score and if you’re worried your credit score will stop you from getting a loan don’t worry, we offer loans for bad credit as well.

  • The cost of a 1-year loan will depend on how much you borrow and at what interest rate. Our representative rate is 89.9% and while our APR rates range between 9.3% and 1721%, these will be based on your personal circumstances and your credit score. To know how much your loan will cost, you can get an instant quote which will reflect how much you borrow and your interest rate.

  • Loans over 12 months are usually fixed monthly payments over the course of the year until your loan is cleared. However, you can pay your loan off faster. You can make early repayments at no extra cost or when applying online you can compare the different interest rates of repayment periods and choose which one is best for you and the amount you need. We offer 3 month loans as well as 6 month loans or you can choose to pay your loan off a longer period of time, to 36 months. While you can personalise to period to fit your needs, it’s important to know that the chosen period effects the interest rates on your chosen amount.

  • Yes, while Sunny is a loan introducer, we work with a credit broker who has a panel of direct lenders. So, when you apply for a one year loan with us, we pass your application to our panel of lenders to find you the best deal they can. Whether you’ve got good or bad credit you can get a one year loan from direct lenders today, with instant decisions and the money in your account the same day.

Apply For A 12 Month Loan Online Today

If you're confident Sunny is the right choice for you, apply today and confirm that you wish to pay back your loan over 12 months. We're here to offer life support when you need it.

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Representative 89% APR