Payday loans are simply a “catch-all” way to describe short-term, unsecured loans. They are high interest, short-term borrowing options that are there to help when you’re close to payday but need a little extra support before your wages arrive. When you take on one of these loans, you usually aim to pay them off within a short time frame – once you receive your wages at the end of the month.
Here at Sunny, we offer payday loans in amounts from £100 to £2,500 to suit every need. Whether you need to get something fixed or pay an unexpected bill, there’s a payday loan to help.
This type of loan is there when your money is stretched and if you choose Sunny, you’ll benefit from a quick turnaround and no fees beyond interest. Read on to find out more about payday loans, when one might be right for you, and what they involve.
Eligibility for payday loans
You must be over 18 years old and a UK resident to be eligible to apply for a Sunny payday loan.
You must also:
- Be able to supply proof of your regular income
- Provide proof of your address for the past three years
- Have a bank account and active debit card
- Have an email address and mobile phone
- Not be be bankrupt
- Agree to a credit check
When you apply for a payday loan online with Sunny, we will perform a credit and affordability check on you. If you have a poor credit history, take a look at our guide on bad credit loans to find out more about applying for a payday loan in this circumstance and how to improve your credit score.
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.
For example, if you take out a loan with us of £250, on a loan term of six months, your total repayable amount – with 1281% APR – would be £440.05. This can be paid in instalments of £73.35 a month. The amount however, can be repaid early at any time, which will save you money on interest. Try out the calculator below to see what could work for you.
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.
How a Sunny payday loan can help
Sunny is different from some other loan companies because we don’t charge 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 which accrues daily.
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 offer a range of forbearance options and work with them to help them get back on track.
If your payday loan is approved, the money could 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 check your payment schedule, and make extra payments if you are able.
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.
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.
Got everything you need?
We hope this guide has helped when it comes to deciding on a loan option for you. Payday loans are a good choice for those who need emergency cash but are confident they can make repayments.
Looking for alternative lending options?
Browse our range of loan guides below. Each one is designed for borrowers experiencing different circumstances, 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.