A ‘short-term loan’ is, as its name suggests, a loan with a relatively short repayment period. This can range from around as little as a week to a number of months depending on the lender. This is considered short-term compared to traditional personal loans which usually have a repayment period of a year or longer.
Short-term loans can help borrowers with emergency expenses that may suddenly arise. For example, if you need to urgently repair your car or fix a broken boiler and do not currently have the money to cover it, an emergency short-term loan could be a helpful solution. This type of loan allows you to spread the cost out over a few weeks or months, without committing to a long-term contract.
If you’re looking to get a short term loan, we’ve created this guide detailing why you might choose one, what they involve and why Sunny may be the best fit for you and your circumstances.
Eligibility for an alternative to a payday loan
To be considered eligible for a short-term loan, you need to tick a few boxes. You must:
- Be 18 years old, or over
- Be a UK resident
- Have proof that you have a regular income
- Be able to give details of your address for the past three years
- Supply the details of your bank account
- Have an email address and a mobile phone
- Not be bankrupt
We will also need to conduct a credit and affordability check. We do this to ensure that you have managed repayments well in the past, and that you can comfortably pay back what you wish to borrow now. We look to support our customers with our “life support” offering – this means only providing short-term loans that they can make repayments, without experiencing financial difficulty.
Example of one of Sunny’s loans
Before you take out a short-term loan, it’s important you look into how the costs break down to see how much interest you will be paying and what the total amount repayable will be. To help, we’ve created this sliding calculator. Select the amount you want to borrow, and how long for, and see a breakdown of how much this will cost on a monthly basis to pay back, as well as how the length of time you wish to repay over affects the total cost. Explore the different options available using the calculator below before you apply for a short-term loan.
Short-term loans information hub
We’ve answered some of the most common and important questions around the best short-term loans and what to ask before taking one out. Read through these before hitting apply and feel confident that you are taking on the right loan for you.
How Sunny can help
At Sunny, our short-term loans come with a number of benefits that can make repaying what you’ve borrowed simple and stress free. Take a look at the details of our features below.
When you apply for a short-term loan you can get an instant decision and the emergency money you need transferred into your bank account in just 15 minutes, if approved.
We don’t charge any fees. This means you won’t need to factor in any additional costs such as admin or application fees and we don’t issue a charge if you are late making a repayment.
We understand that circumstances change, so if you realise you don’t need your loan simply call to pay it back in full within five days* and you won’t pay any interest.
More information on short-term loans
Because the duration of one of these loans is considerably less than other types of loan, the amounts borrowed are typically relatively small. These generally range from £100 to £1000, to help borrowers quickly get out of a temporary financial tight spot.
As with any loan, it’s important to research what you’re getting into thoroughly before making an application.
Comments from Sunny customers
We love to receive feedback from our customers and we’ve had some great scores and testimonials shared on TrustPilot**. Check these out below to decide if Sunny is the right lender for you when you need a short-term loan.
Got everything you need?
You can find more information about general money management as well as tips on how to get the most out of your money, in our digital magazine – Good Vibes.
If you have any additional questions regarding our short-term loans or the application process, please visit our frequently asked questions section. Alternatively, you can contact us using our online live chat, Facebook, Twitter or email and we’ll be happy to help. For now, if you feel confident one of these loans is right for you, simply hit the apply now button below.
Looking for alternative lending options?
Whether you have bad credit and are wondering if one of these loans is right for you or simply want to know more about cash loans, click the links below to our in-depth guides to find out more.