What really is the Difference Between Short Term And Payday Loans?
Both short term loans and payday loans are very similar in some ways. Both are unsecured, cash loans that are there to tide you over until your next payday. Both types of these direct lender loans are best suited to unavoidable expenses – not really for non-essential purchases, however they are very useful if your heating has broken down and needs to be replaced, or if your car is in the garage for repairs. But it’s where short term and payday loans in the UK differ.
Interest rates – the interest rates you’ll pay on payday loans in the UK shouldn't be any higher than short term loans. Whilst both Payday loan direct lenders and short term loan lenders have high interest rates, you can pay back the loan early in most circumstances making the interest payment lower.
Loan term – there is a main difference between the length of time it takes to pay back payday loans and short term loans. Payday loans in the UK need to be repaid in full, along with any interest, fees and other charges, on your next payday which means you keep the interest payment to a minimum. However, this isn’t always manageable, so short term loan direct lenders like us allow you to split the cost over several instalments which seems great but pay it off as quickly as possible.
Loan amount – payday loans and short term loan amounts tend to be the same. Some payday loan direct lenders offer upto £1500 higher, which when paid back in one lump sum reduces the interest payments dramatically vs a short term loan. At LoanPig, we offer short term loans between £100 and £1500 for new applicants and repeat customers, we also encourage early payback to reduce the overall interest payments.
How it works
Ever wondered how short term loans work? Read on for our simple application process.
Use our quick cash online loan calculator to choose your loan amount. Choose how long you want to borrow for and your repayment will be shown in the illustration.
The application process is quick and easy! Enter your personal details, income detail and expenses and we'll do our best to find you a loan or match you to one of our short term or payday loan lenders.
Once we match you to a lender, whether it is us or one of our lending partners, you will be transferred to their website to complete the process and your loan will soon be flying into your account.
We can give you access to one of the UK's largest panel of lenders, to find the best loan deal available for you.
Using innovative technology, LoanPig offers you an efficient, easy and fast application process, which will allow our customers to securely apply for a loan. If we can't lend to you directly, we aim to match you with lender that can satisfy your requirements.
Short Term Loans
At LoanPig, we specialise in providing loans to individuals who need a quick injection of cash in an emergency. All of the loans that we provide here at LoanPig have competitive APR rates with reasonable and fair repayment terms. We differentiate ourselves from the other lenders in the market today by being both a direct lender as well as a loan broker. This means that our customers have access to a wide and varied range of different lenders and products, they can, therefore, source the perfect loan product to suit their needs and their situation. All of our loans are incredibly versatile, apply online today to source yourself a short term loan from LoanPig.
Bad Credit Loans
A loan from LoanPig is as an emergency form of borrowing that is designed to cover an unexpected expense such as a vital car repair or an unexpected bill. Our loan products therefore are not a viable option for individuals with long term debt issues, nor are they intended to be used for luxuries or for unnecessary purchases. Typically, our customers spend their loans on:
- Recovering financially from an unexpected or a sudden emergency, such as a boiler or a washing machine breakdown
- Unforeseen bills, such as a vet bill or a medical bill
- Repairs to their vehicle, especially when that vehicle is essential for work or is needed to travel to and from work
At LoanPig we are able to offer our customers a range of flexible borrowing solutions. Our loan amounts start at just £100 and rise to a maximum of £1500. As an FCA authorised lender, we limit borrowing to £1500 to ensure that our customers are able to afford their repayments comfortably. Find out how much you can borrow with a payday loan from LoanPig.
What Is The Rate Of Interest On A Loan From LoanPig?
Our rates of interest vary and are dependant upon a number of different factors, including the amount you wish to borrow and the length of time you wish to borrow it for, your personal circumstances, as well as your financial history.
To find out the amount of interest you will be required to pay back on your LoanPig loan, all you need to do is use our online loan calculator above. Input the amount you wish to borrow and the amount of time you would like to take in order to pay it back in full, and you will be shown the amount of interest you will be required to pay each month as well as your total monthly payment amount. If you would like to learn more about our process, see how it works here.
Short Term Loan Direct Lender
To apply for a LoanPig loan all you need to do is fill in our short and simple online application form. The information that we need from you will allow us to confirm:
a. Your identity
b. Whether you are able to afford the repayments on your loan
c. Your credit status
You will also need to submit a statement of income and expenditure as well as a copy of your ID (passport or driving licence).
Can Anyone Apply For A Cash Loan From LoanPig?
In order to apply for a loan, applicants must:
a. Be over 18 years old
b. Be a UK resident
c. Be employed (in some circumstances other forms of income may be considered)
d. Meet the affordability and credit checks which we and our lenders request
To discuss our eligibility criteria, or if you have any further questions for us then please get in touch.