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12-month loans
  • Emma Parker
  • July 25, 2019

12 Month Loans are a type of short duration loan which has become very popular in recent times. These are designed to last for only a year or 12 months to be very precise. They are of immense help as they help an individual to get fund for the concerned need and it must be paid back within a year or 12 months. That’s the main difference that makes it unique from other types of short term loans provided by various marketplace lenders.

These types of loans allow you to take different sums of money and they can help break up the borrowers’ loan into 12 feasible repayments that must be paid back on a monthly basis.  Small loans are a good way for you to budget for anything unwanted.

Elucidation of 12 Month Loan

The approximate interest for borrowing 200 pounds under such type of loans comes around 26 pounds every month. There are many people who are struggling with their bad credit score and there are many lenders who are interested in providing loans to borrowers who have poor credit ratings and whose application for a loan has been rejected elsewhere. Most lenders have criteria checker that help the person’s probability of approval for a 12-month loan despite low credit before applying.

You can boost your credit score by being accepted for a 12-month loan and repaying it on the scheduled time of every month. This will make it easier for you to get any sort of credit in the future. If you miss out on any payments then it has an adverse effect on your credit history which in turn will hinder your ability to gain a loan in the future.

There are many direct lenders in the UK who offer 12-month loan without any security or guarantor as not everyone can manage to provide security or guarantor. That’s the reason it has become very famous in recent times.

How to Get Approval?

To get the approval for this type of loan, you have to fulfill the following criteria:

  • You should be above 18 years of age and must be citizen of the UK.
  • If you have a good source of income then it’s a plus point but it’s not mandatory.
  • If you have a good credit score then it becomes very easy to get the approval. Lenders always give preference to those borrowers who have good credit record as they can be trustworthy and reliable and more likely to repay the loan on time.
  • As discussed, there are lenders who provide 12-month loan to such borrowers who have less-than-perfect credit score. So there is nothing to worry about it even though you have indecent credit history.
  • No need to provide security or collateral.
  • Lenders don’t ask you to bring any guarantor as well.


There are many advantages of this loan as shown below:

  • Many lenders provide this loan even though you don’t provide any guarantor.
  • Immensely helpful in need of emergency money.
  • These loans are very simple and hassle-free and don’t include any hidden charges.
  • Very easy to repay when compared to other types of loan like a personal loan or payday loans which have a higher rate of interest.
  • Very easy process and less paperwork due to online method of application.
  • Lenders offer personalized loan to the borrowers depending on their financial condition and status of living.
  • Competitive rate of interest even for low credit borrowers.
  • These loans are approved within 24 hours and amount will be transferred directly into your account.
  • They are very flexible in terms of repayment as you have to make single payment every month for 12 months.

Hence, when you are in a financial emergency you can always look for 12-month loans to fulfill your financial need. They are very popular among borrowers with an adverse credit record. One of the main reasons behind its popularity is that it offers competitive APR, hassle-free and reliable loan option for poor credit too. Also no need of guarantor, availability of small amount loan as well as large amount loan, repayment of the loan in easy installment, etc. So if there is any upcoming expense for which you have not planned earlier, you can choose the best lender on the Internet for 12-month loans in the UK.

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