12 Month Loans, Affordable Borrowing from Fast Loan UK

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The cost of borrowing £300 over 6 months:

Fast Loan UK £507.48

Mr Lender £544.00

Cashasap £556.23

Lending Stream £579.00

Money Platform £586.26

Savvy £595.00

QuidMarket £596.46

Cash4unow £599.82

Fernovo £595.92

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Ticktock Loans £595.92

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Loan Pig £595.92

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Moneybag £600.00

Proud to offer the cheapest instant short term loans in the UK

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Warning: Late repayment can cause serious money problems. For help, go to moneyhelper.org.uk

Representative example:

Borrow: £300 over 8 months. 8 repayments of £70.31. Total amount payable £562.44. Interest rate: 130.21% pa (fixed). Representative APR: 840.75%

A 12 month loan is a type of short-term borrowing that allows you to spread repayments over a year, making it more manageable than traditional payday loans that require full repayment in one instalment. For people facing unexpected bills or temporary financial struggles, 12 month loans can provide breathing space while keeping monthly payments affordable.

These quick loans are offered by direct lenders online in the UK, including us for returning, trusted customers. This means you can apply fast and get a decision the same day if eligible as long as your first loan with us is repaid in full. As they typically come with higher interest rates compared to traditional bank loans, it’s important to borrow responsibly and only when you need to.

How Do 12 Month Loans Work?

When you take out a 12 month loan, you borrow a fixed sum (for example, £500, £1,000, or £2,000) and repay it over 12 equal monthly instalments. Each repayment includes both the capital and interest.

Unlike traditional payday loans, where repayment is due in full on your next payday, 12 month payday loans are structured to reduce pressure by spreading the cost.

For example:

Borrow £1,200 over 12 months
Monthly repayment: around £140 (depending on APR)
Total repayment: approx. £1,680

This flexibility makes them appealing to people who need loans for 12 months rather than short term loan options that can be harder to repay.

Benefits of 12 Month Loans

For many in the UK, especially those from lower or middle-income households, 12 month loans direct lenders can be useful in times of financial difficulty. The main benefits include:

Manageable repayments – spread across 12 months instead of a single lump sum.
Fast access to cash – often available the same day.
No need for perfect credit – some lenders consider applicants with bad credit.
Flexibility – useful for unexpected expenses like car repairs, rent arrears, or emergency bills.

That said, borrowers should always compare lenders carefully to avoid paying more than necessary.

12 Month Loans vs. Payday Loans

While some lenders offer 12 month payday loans, the two are not the same. Traditional payday loans are designed to be repaid in one instalment, often within 30 days. In contrast, 12 month loans give borrowers a longer repayment window.

Key difference:

Payday loans = one-off repayment, often high risk of rollover debt.
12 month loans = instalments over a year, more predictable budgeting.

If you’re looking for shorter repayment options, you might also consider alternatives like our 6 month loans or affordable loans for even more flexibility.

Eligibility and Application

To qualify for a 12 month loan from Fast Loan UK, you must have already repaid your first loan in full with us and be:

Aged 18 years or over
Current UK resident
Be in Full-Time, Part-Time or Self-employment
Receive a regular income
Have a valid bank account and debit card

Applications are simple. Complete our online form with your personal and financial details, undergo affordability checks, and receive a decision almost instantly in a lot of cases, though it may be longer if you apply outside of business hours. If approved, the money can be in your account in as little as 15 minutes.

Are 12 Month Loans Right for You?

A 12 month loan may be a good option if you need extra funds for an unavoidable expense and prefer to repay gradually. It can be particularly useful for managing emergencies such as rent arrears, medical costs, or essential home repairs.

However, these loans come with risks. Because the interest rates are higher than traditional credit, borrowing repeatedly can lead to a cycle of debt. If you are already struggling with multiple repayments, an affordable loan or advice from a debt support service may be more suitable.

Have any more questions? Please do contact us. If you are a first-time customer at Fast Loan, the maximum repayment term you can choose is 8 months on a loan of up to £800, so please consider this before starting your application.

FAQs About 12 Month Loans

Are 12 month loans safe?

Yes, 12 month loans can be safe if borrowed from an FCA-regulated lender in the UK. The Financial Conduct Authority regulates the credit industry, ensuring lenders follow strict rules on transparency, affordability checks, and fair treatment of customers. Before applying, you should always check that the company is listed on the FCA register. This helps protect you from unlicensed lenders and ensures your rights are safeguarded. As with any form of borrowing, safety also depends on your ability to make repayments on time. Borrow responsibly and only take what you can realistically afford to repay.

Can I get a 12 month loan with bad credit?

It is possible to get a 12 month loan with bad credit, but you may face higher interest rates compared to applicants with a stronger credit profile. Many direct lenders in the UK specialise in helping people who have missed payments or defaults on their record. These lenders focus more on affordability checks, whether you can manage monthly repayments, rather than solely on your credit score. While approval is not guaranteed, having a regular income and a UK bank account increases your chances. Always compare lenders carefully, and be cautious to avoid unaffordable borrowing that could worsen your financial position.

What’s the difference between a 12 month loan and a payday loan?

Although sometimes confused, a 12 month loan and a payday loan are very different financial products. A payday loan is designed for very short-term borrowing, usually requiring full repayment in one lump sum within 30 days. This can put pressure on your finances if unexpected costs arise again before payday. A 12 month loan, on the other hand, spreads repayments across a year, making them more manageable and predictable. While interest rates may still be high, the structure reduces the risk of immediate repayment stress. For borrowers seeking flexibility, 12 month loans are often a safer alternative.

Can I repay a 12 month loan early?

Yes, most lenders allow you to repay a 12 month loan early, and doing so can save you money. Since interest is charged on the outstanding balance, repaying ahead of schedule usually reduces the total cost of borrowing. Some lenders may apply a small early repayment fee, but many do not, especially among direct lenders regulated in the UK. It’s important to check your loan agreement to understand the terms before signing. If you find yourself in a position to pay off your loan sooner, this option can be financially beneficial and improve your credit history.

How much can I borrow with a 12 month loan?

The amount you can borrow with a 12 month loan depends on the lender, your income, and your credit profile. In the UK, most direct lenders offer loans ranging from £100 to £5,000. Smaller amounts are often used to cover emergency expenses such as car repairs or household bills, while larger sums may help with bigger commitments. Here at Fast Loan, the maximum we can offer with a 12 month repayment term is a £2000 loan. We will carry out affordability checks to ensure you can repay monthly instalments without falling into financial difficulty. If you need only a small sum, options like £200 loans may be a better fit.

12 Month Loans

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