Small Loans

Over 1 million customers have used Sunny since 2022 to find suitable short-term lending. Our 4.5 out of 5 star Trustpilot rating reflects genuine customer experiences, and with 7,500+ daily quotes, we’re helping people right now. See if you match in minutes with a soft credit check that won’t affect your score.

As a broker, we give you access to multiple lenders in one application. You compare offers, choose what works for your budget, and only accept if you’re completely happy. No pressure, no hidden costs, just straightforward help finding the right small loan.

See if you match

•  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 Small Loans?

Small loans are short-term borrowing solutions designed for modest amounts, typically between £100 and £2,500. They’re ideal for covering specific, manageable expenses without taking on more debt than you actually need. Think of them as targeted financial help for life’s smaller emergencies.

Unlike larger personal loans that might require you to borrow thousands, small loans let you match the amount to your actual need. Need £250 for a broken boiler? Borrow £250. Need £400 for car repairs? Borrow £400. This approach helps you avoid over-borrowing and keeps your repayments affordable.

Small loans through Sunny come with flexible repayment terms from 3 to 36 months, so you can spread the cost in a way that fits your budget. A £200 loan over 3 months looks very different to a £1,500 loan over 24 months. You choose the combination that works for your circumstances.

These loans are particularly useful for unexpected costs that pop up between paydays. Your washing machine breaks down, your car needs an MOT repair, your pet needs emergency treatment, or your boiler gives up in winter. Small loans bridge the gap between what you have and what you need, without forcing you to borrow more than necessary.

If you’re considering a small loan for a specific emergency, you might also want to explore our emergency loans which focus on urgent funding needs with same-day processing.

How Small Loans Work Through Sunny

Getting a small loan through our broker service is straightforward. We’ve designed the process to be quick and transparent, with no surprises along the way.

Step 1: Apply online in minutes
Complete our simple application form with basic details about yourself and how much you need to borrow. The form takes around 2 minutes. You’ll choose your preferred loan amount and repayment term, giving us a clear picture of what you’re looking for.

Step 2: We search multiple lenders
As a broker, we search our network of FCA-authorised lenders on your behalf. This happens instantly using a soft credit check, which means no impact on your credit score at this stage. We’re looking for lenders who offer small loans and are likely to accept your application.

Step 3: See your matches
Within minutes, we’ll show you any offers from lenders who want to provide you with a loan. You’ll see the amount, the monthly repayment, the total you’ll repay, and the interest rate. Everything is laid out clearly so you can compare properly.

Step 4: Compare and choose
Take your time reviewing the offers. There’s no obligation to accept anything. If you find a loan that fits your needs and budget, you can proceed with that lender. If nothing looks right, you can walk away with no impact on your credit score.

Step 5: Complete with your chosen lender
If you decide to accept an offer, you’ll complete the final application directly with that lender. They’ll do a full credit check at this stage (which will show on your credit file), verify your affordability, and if everything checks out, transfer the funds to your bank account. Most approved loans are funded the same day.

The beauty of using a broker is that you only need to apply once. No filling out multiple forms on different websites, no multiple hard credit checks damaging your score. One application, multiple options.

How Much Do Small Loans Cost?

Understanding the true cost of borrowing is essential before you commit. At Sunny, we believe in complete transparency about what you’ll pay.

Our representative APR is 89%. This is the annual percentage rate that at least 51% of successful applicants receive. However, the actual rate you’re offered will depend on your personal circumstances, including your credit history, income, and the amount you want to borrow. Rates can range from 9.3% to 1,721% APR.

Representative example for a small loan:
Borrowing £1,000 over 18 months at 89% APR (fixed) means:
Monthly payment: £102.42
Total amount repayable: £1,843.60
Total interest charged: £843.60
Interest rate: 89% per annum (fixed)

Example for a smaller amount:
Borrowing £500 over 6 months at 611.74% representative APR means:
Monthly payment: £123.45
Total amount repayable: £740.70
Total interest charged: £240.70

Why do rates vary so much? Smaller loans over shorter periods often have higher APRs because the interest is compressed into fewer months. A £200 loan over 3 months will have a higher APR than a £2,000 loan over 24 months, even though the total interest might be less.

The key is to look at both the monthly payment (can you afford it?) and the total repayable amount (what will this actually cost?). Don’t just focus on the APR figure in isolation.

If you’re looking to spread the cost over a longer period to reduce monthly payments, consider exploring our 6 month loans or 12 month loans to see how different terms affect your repayments.

Who Can Apply for Small Loans?

Our partner lenders have clear eligibility criteria to ensure responsible lending. To apply for a small loan through Sunny, you’ll need to meet these basic requirements:

• Be at least 18 years old – You must be a legal adult to enter into a credit agreement
• Be a UK resident – You need to live in the United Kingdom with a verifiable UK address
• Have regular income of at least £500 per month – This can be from employment, benefits, or self-employment
• Have a UK bank account – With an active debit card for receiving funds and making repayments
• Have a 3-year address history – Lenders need to verify your identity and residency
• Not be currently bankrupt or in an IVA – Active insolvency proceedings prevent new borrowing

What about credit history? Past credit issues don’t automatically disqualify you. Many of our partner lenders specialise in helping people with less-than-perfect credit scores. They look at your current situation and ability to afford repayments, not just your past. If you’ve had credit difficulties, take a look at our bad credit loans page for more specific information.

Remember, meeting these basic criteria doesn’t guarantee approval. Each lender will assess your individual circumstances, including affordability checks to ensure you can manage the repayments alongside your other financial commitments.

Why Use a Broker Like Sunny for Small Loans?

You might wonder why you should use a broker instead of going directly to a lender. There are several genuine advantages to the broker model, especially for smaller loan amounts.

Access to multiple lenders with one application
Instead of filling out separate applications on multiple websites (each potentially damaging your credit score), you apply once through Sunny. We search our entire network and show you all available options. This is particularly valuable for small loans, where some lenders specialise in smaller amounts whilst others prefer larger loans.

Soft credit check protects your score
When we search for lenders on your behalf, we use a soft credit check that’s only visible to you. Other lenders can’t see it, and it doesn’t affect your credit score. You only get a hard credit check (the kind that shows on your file) when you choose to proceed with a specific lender. This means you can explore your options safely.

Save time comparing options
Rather than researching different lenders, checking their rates, and manually comparing offers, we do that work for you. You see the relevant options side-by-side, making it easy to identify which loan offers the best value for your needs.

Never any fees from Sunny
We’re paid by lenders when we successfully introduce customers to them. You never pay us anything. No application fees, no service charges, no hidden costs. The loan you see is the loan you get, with no extra charges from us.

All lenders are FCA-authorised
Every lender in our network is authorised and regulated by the Financial Conduct Authority. This means they all follow strict rules on responsible lending, affordability checks, and fair treatment of customers. You get the same consumer protections regardless of which lender you choose.

You’re always in control
Just because we show you offers doesn’t mean you have to accept them. There’s no obligation at any stage. You can review the options, think it over, and only proceed if you’re completely comfortable with the terms.

If you value convenience and speed, you might also be interested in our quick loans service, which combines the broker benefits with rapid processing for time-sensitive needs.

Why Smaller Can Be Smarter

There’s a common misconception that you should borrow as much as possible “whilst you can.” This thinking leads to unnecessary debt. With small loans, you take a different approach: borrow exactly what you need, no more and no less.

Lower amounts mean lower repayments
A £200 loan over 3 months might cost you £80-90 per month. That’s far more manageable than a £2,000 loan at £200+ per month. Smaller repayments are easier to fit into a tight budget, reducing the risk of missed payments or financial stress.

Pay less interest overall
Even at high APRs, the actual interest paid on a small amount is less than on a large amount. Borrowing £300 might cost you £80-100 in interest over 6 months. Borrowing £3,000 would cost hundreds of pounds in interest. Every pound of interest you avoid is money that stays in your pocket.

Reduce the temptation to overspend
When you have £2,000 sitting in your account, it’s tempting to spend it on things beyond the original emergency. Then you’re stuck repaying a loan for purchases you didn’t really need. Borrowing only £400 for that specific car repair keeps you focused and prevents debt creep.

Shorter repayment periods possible
Small amounts can often be repaid in 3 to 6 months rather than stretching over years. This means you’re debt-free faster and can move on with your financial life. Living with debt for 3 months feels very different to living with it for 3 years.

Every pound matters
When you’re on a tight budget, every pound counts. Borrowing £150 instead of £500 means £350 less debt, lower monthly payments, and less interest. That difference might seem small, but it can be the difference between managing comfortably and struggling.

Specific, targeted solutions
Small loans work best when matched to specific needs. Your washing machine costs £250 to replace, so you borrow £250. Your car needs a £180 repair, so you borrow £200 (with a small buffer). This targeted approach prevents the vague “I’ll borrow extra just in case” thinking that leads to over-borrowing.

Real-life examples of smart small loan use:

• £200 for a washing machine repair – Your machine breaks down, and you’ve got school uniforms to wash. A £200 loan over 3 months gets you sorted quickly without breaking the bank.
• £150 for a car battery replacement – Your car won’t start, and you need it for work. A quick £150 loan means you’re back on the road within hours, not days.
• £300 for an emergency vet bill – Your pet needs urgent treatment. A £300 loan covers the essential care without forcing you to borrow thousands “just in case.”
• £500 for urgent home repairs – A leak in your bathroom needs fixing before it causes more damage. £500 sorts the problem now, preventing a much bigger bill later.

The principle is simple: match the loan to the need, not the other way around.

Check your eligibility now

You can count on Sunny:

• Over 1 million customers served since 2022
• 4.5 out of 5 stars on Trustpilot from 7,385 reviews
• 7,500+ daily quotes processed
• FCA-authorised and regulated service
• No fees from Sunny – ever
• Soft credit check only – no score impact

What to Consider Before Applying for a Small Loan

Borrowing money, even a small amount, is a serious commitment. Before you apply, think through these important considerations:

Can you genuinely afford the repayments?
Work out your monthly income after essential bills (rent, food, utilities, transport). Can you comfortably afford the monthly loan repayment on top of everything else? If money would be extremely tight, consider whether borrowing is the right choice. Struggling to repay causes more stress than the original problem.

Have you explored alternatives first?
Could you borrow from family or friends interest-free? Can you sell anything you no longer need? Is there a local credit union offering better rates? Could you arrange a payment plan directly with whoever you owe money to? Small loans are helpful, but they’re not always the only solution.

Do you understand the total cost?
Look at the total amount repayable, not just the monthly payment. Yes, you can afford £100 per month, but are you happy paying £1,200 total to borrow £800? Make sure the cost makes sense for your situation.

What’s your backup plan?
Life is unpredictable. If your income drops or another emergency happens, could you still make the repayments? If not, what would you do? Having a Plan B reduces anxiety and helps you avoid missed payments.

Are you borrowing to cover existing debt?
Using one loan to pay another (known as debt consolidation or debt juggling) rarely solves the underlying problem. If you’re already struggling with debt, free help is available from organisations like StepChange and Citizens Advice. They can help you find better solutions than taking on more borrowing.

Is this a genuine emergency or a want?
Be honest with yourself. A broken boiler in winter is an emergency. New trainers because the old ones look worn is a want. Small loans work best for genuine, unexpected needs that can’t wait.

How Sunny Protects You

Your safety and fair treatment matter to us. Here’s how we ensure you’re protected throughout the process.

FCA authorisation and regulation
Sunny operates as Upward Finance Limited (Company No. 11365247), an Appointed Representative of Flux Funding Limited (FRN 806333). Flux Funding is authorised and regulated by the Financial Conduct Authority. This means we follow strict rules on how we treat customers, handle data, and conduct our business. Our registered office is at 7 Bell Yard, London, WC2A 2JR.

Soft credit check protects your score
When we search for lenders, we use what’s called a soft search or soft credit check. This appears only on your credit file where only you can see it. Other lenders checking your file later won’t see our search, and it has absolutely no impact on your credit score. This protection means you can explore your options without risk.

Secure data handling
Your personal and financial information is encrypted and stored securely. We follow UK data protection laws (GDPR) and only share your information with lenders when you give us permission to do so. We never sell your data to third parties.

Clear, transparent pricing
Every loan offer shows you the interest rate, the monthly payment, the total repayable amount, and the loan term. There are no hidden fees or surprise charges. What you see is what you get.

Right to withdraw
If you’re matched with a lender and change your mind before accepting the loan, you can simply walk away. There’s no penalty, no fee, no impact on your credit score from our initial search. Even if you do accept a loan, UK consumer credit regulations typically provide a 14-day cooling-off period (check specific terms with your lender).

Responsible lending partners
Every lender in our network must conduct proper affordability assessments. They check whether you can afford the repayments based on your income and existing commitments. This isn’t about being difficult; it’s about protecting you from unaffordable debt.

The Small Loan Application Process

Let’s walk through exactly what happens when you apply for a small loan through Sunny, so you know what to expect at each stage.

Information you’ll need to provide:

• Your full name, date of birth, and contact details (email and mobile number)
• Your current address and 3-year address history
• Your employment status and monthly income details
• Your UK bank account details (account number and sort code)
• Details about your monthly expenses and existing credit commitments
• How much you want to borrow and over what period

How long does it take?
Completing the application form typically takes 2-3 minutes if you have all your information ready. Once submitted, our system searches lenders and provides results within seconds to a few minutes. If you’re matched with lenders and choose to proceed, the full application with your chosen lender takes another 10-15 minutes. Most approvals and funding happen the same day.

What happens after you submit?
We immediately search our network of lenders using your information and a soft credit check. Within minutes, you’ll see either:

• One or more loan offers from lenders willing to provide you with credit, or
• A message explaining we couldn’t find a suitable match this time

If you receive offers, you can compare them side-by-side. Each offer shows the lender name, loan amount, term, monthly payment, total repayable, and APR. Take your time reviewing them.

Choosing your lender
When you select an offer you like, you’ll be directed to complete a full application with that lender. They’ll verify your information, conduct a full credit check (which will appear on your credit file), and make a final lending decision. This is when they confirm the exact terms and funding timeline.

Receiving your funds
If approved, most lenders transfer funds the same day, often within 15 minutes of final approval. The money goes directly into the bank account you provided. You’ll receive confirmation from the lender when the transfer is complete, and most banks credit your account within an hour.

Setting up repayments
Your lender will set up automatic payments from your bank account on agreed dates (usually monthly). Make sure you have sufficient funds in your account on payment dates to avoid missed payment fees and damage to your credit score.

Related Loan Options

Small loans might not be the only solution for your needs. Depending on your situation, these alternatives could be worth considering:

Emergency Loans
If you need money urgently for an unexpected crisis, emergency loans focus on same-day funding with 24/7 processing. Whilst small loans emphasise borrowing modest amounts, emergency loans prioritise speed. Both options overlap significantly, but emergency loans are specifically marketed to people who need cash within hours rather than days. If your washing machine breaking down feels like an emergency because you have young children, emergency loans and small loans serve the same purpose with different emphasis.

£100 Loans, £200 Loans, and £500 Loans
If you know exactly how much you need, our specific amount pages provide targeted information and examples for those precise borrowing levels. A £100 loan has very different characteristics to a £500 loan (different terms available, different typical uses, different total costs). These pages help you understand what borrowing that specific amount looks like in practice, with relevant examples and cost breakdowns.

3 Month Loans
If you want to repay quickly and can afford higher monthly payments, 3-month loans get you debt-free in just a quarter of a year. Small loans over 3 months are ideal for people who want to borrow a modest amount and pay it back fast. The shorter term means less interest overall, even if the APR looks high. This option works well if you’re confident your financial situation is stable for the next 3 months.

Same Day Loans
When timing is critical and you need funds to hit your account today, same-day loans offer rapid processing with most approvals funded within 15 minutes. Whilst small loans can often be funded the same day, same-day loans make this speed the primary feature. If you’re reading this at 10am with an urgent need, same-day loans clarify what’s possible in terms of getting money in your account before the end of the business day.

Find your match today

You can count on Sunny

• Over 1 million customers served since 2022
• 4.5 out of 5 stars on Trustpilot
• 7,500+ daily quotes processed
• FCA-authorised and regulated
• No fees from Sunny
• Soft credit check only