If you’re in a position where you need access to fast cash – then you’ll likely need to consider a same day loan. To clarify, a same day loan – or instant loan as it is often called, is usually packaged as a payday loan. By this, we mean that you’ll likely need to use a payday loan provider that specializes in smaller sized loans, albeit, they often have the capacity to release the funds in as little as one hour.
On the flip side, this will come at a cost – a much higher APR rate than what you will find by using an alternative funding source, such as a personal loan or credit card. Nevertheless, if it is fast funding that you are looking for, then be sure to read our in-depth Same Day Loan Guide. Within it, we’ll cover everything that you need to know – such as how a same day loan works, how much it is likely to cost you, how quickly you will get your hands on the funds, and more.
What are the Pros and Cons of Same Day Loans?
How to Apply for a Same Day Loan? Read our Step-by-step Guide:
Terminology in the online loan space is often used interchangeably. In this respect, we mean that same day loans, instant loans, and payday loans are typically similar in what they offer. Although this includes super-fast funding times, this is usually at the cost of smaller loan sizes and higher APR rates. Nevertheless, if you’ve never applied for a same day loan before, then we would suggest reading the step-by-step guide that we have outlined below.
Step 1: Find a suitable lender
Your first port of call will be to find a suitable same day loan provider. You’ll initially need to check the provider’s website to assess how quickly they typically release the funds. Don’t forget, even if the lender does market funding on a same day basis, they will still need to verify your information before they can do this.
You also need to make some considerations regarding fees and loan sizes. It is all good and well if your lender is notable with its funding times, but you also need to make sure that they are able to lend you the required funding amount. Moreover, you also need to assess what the provider’s fee structure is like.
Step 2: Start the application process
Once you have found a lender that meets your individual needs, you will then need to start the online application. In the vast majority of cases, you will need to get the ball rolling by entering the amount that you wish to borrow, and for how long, via the homepage. You’ll then be taken the main application page.
Step 3: Enter your personal and financial information
As is the case with all credit-based applications, you will now need to provide the lender with your personal information. This will include your full name, home address, date of birth, driver’s license or passport number, telephone number, and email address. After that, you’ll then need to enter some information about your income.
Not only will this include your employment status, but also the amount of money that you bring home each month, and the frequency at which you receive your salary (for example the last day of the month). You will also need to provide details about the place that you work, such as the name of the company, the address, and your direct line manager.
Step 4: Read the digital loan agreement and sign it
Once you have entered your personal and financial information, the same day loan provider will then run its electronic checks. They do this by cross-referencing your data with third-party sources – including that of credit bureaus. The key point here is that because you require the loan funds on the same day, they will attempt to verify your information without asking for supporting documentation.
As such, if you are in possession of a good credit score with the main three bureaus, then you stand the best chance possible of having your application approved instantly. Once a decision has been made (which usually takes no more than a couple of minutes), you will then be able to view your pre-approval rates. This covers the interest payable on the loan, as well as when you will be required to pay it back. If you’re happy with the terms outlined in the loan agreement, sign it to complete the application.
Step 5: Satisfy the verification checks
If the lender was unable to verify your information automatically via its third-party sources, you’ll likely need to provide supporting documentation. Don’t worry, as this will usually consist of a recent payslip or bank account statement – which is hopefully something you have access to. Once you upload the document, the same day loan provider will manually verify it, before sending you the digital loan agreement to read and sign.
Reviewer’s choice of best same day loan providers[loan-provider sortby=”rating” title=”Best same day loan providers” per-page-count=”3″ total-count=”3″ category=”44″ offset=”0″ reviewers-choice=”true” hideButton=”false”]
Best 8 Same Day Loan Providers 2021:
So now that you know how to apply for a same day loan, you’re now ready to begin the online application with your chosen lender. However, if you’re unsure which lender to go with, we have outlined the best three providers currently active in the UK market. To gauge the type of factors that we look out for before listing a recommended lender on our site, be sure to read the following criteria.
Criteria used to rank the best same day loan lenders
- How quickly can the provider release the loan funds to you
- The minimum and maximum loan sizes available
- The minimum eligibility requirements to get the loan
- How much APR you’ll be paying on the same day loan
- Registered with the FCA as an approved UK lender
Keep in mind that this rate isn’t fixed but can go as high as 1333% depending on a lender’s term and your credit profile. But even with their high interest rates, the lenders are lenient when it comes to the payback period. You will be given about 2 or 36 months to repay the loan based on the amounts borrowed.
Even better, you are allowed to ask for an extension period to service the loan which saves you the hassle of paying back in large amounts on your next payday. But be cautious about late and missed payments as they may prompt the lender to take a legal action against you. Also, your credit score rating may be affected in the process and eventually reduce your borrowing limit. ” pros1=”Fast and straightforward loan application process” pros2=”Offers longer repayment period of up to 36 months” pros3=”Licensed and regulated by the Financial Conduct Authority” cons1=”High interest rates – Up to 1333%” cons2=”Strict repayment terms ” cons3=”” cta-label=”Apply Now” cta-url=”https://learnbonds.com/uk/visit/loan-mr” disclaimer-text=””] [in-content-heros-static name=”very-merry-loans” title=”2. Very Merry Loans – Best for flexible repayment terms” description=”Very Merry Loans is a credit broker platform that links borrowers to potential lenders. The platform doesn’t charge a service fee for using the platform and instead takes a commission from lenders after every successful loan application.
You are allowed to borrow a minimum of £100 all the way to a maximum of £2,000 which comes with payback period of between 2 and 12 months. Failing to honour the payback dates will attract a penalty of about £15 in addition to representative APR of between 49.9% and 1333%.
Although these rates depend on your credit score, a proof of of reliable source of income can get you better rates in addition to improving your borrowing limit. ” pros1=”Flexible repayment terms” pros2=”Offers services everyday including weekends and holidays” pros3=”Borrowers with a bad credit report can also apply ” cons1=”Additional borrowing costs may be incurred” cons2=”It’s not a direct lender which raises privacy concerns ” cons3=”” cta-label=”Apply Now” cta-url=”https://learnbonds.com/uk/visit/very-merry” disclaimer-text=””] [in-content-heros-static name=”heart-paydays” title=”3. Heart Payday – Extended repayment periods of up to 36 months” description=”Heart Paydays is an online credit broker that strives to connect borrowers to lenders without charging a fee for the service.
The borrowing limit starts from £100 all the way to £2,000 at an interest rate of between 49.9% and 1333% APR. It should be noted that the interest rates are subject to the lenders borrowing terms with some charging even more on late payments. But this shouldn’t be a problem given that the payback period ranges from 4 to 36 months, which is enough time to fully service the loan if you have a reliable source of income.
You can make lumps-sum paybacks to repay the loan faster or pay in smaller amounts depending on your budget. What we liked the most about this platform is how the application process is streamlined for efficiency, right from filling in the required details to receiving the funds and everything in between. ” pros1=”Fast loan application and approval process” pros2=”Extended repayment period” pros3=”Reliable customer support” cons1=”The platform is a credit broker and not a direct lender” cons3=”” cta-label=”Apply Now” cta-url=”https://learnbonds.com/uk/visit/heart-payday” disclaimer-text=””] [in-content-heros-static name=”viva-loans” title=”4. Viva Loans – Best for transparency ” description=”Payday loans may come with hidden costs that makes them even more expensive to payback. To mitigate this problem, Viva Loans is committed to maintaining transparency throughout the whole application process.
When you are applying for a loan, the platform gives you access to an online calculator where you enter your desired loan amount. This amount should be between £200 and £2,000 to be paid back at an interest rate of between 49.9% and 1333% APR.
You can then set a repayment period, between 2 and 36 months, after which the calculator calculates all the cost associated with the loan including the interest and borrowing terms. Once you are certain of the amount you wish to borrow, you’ll then fill in your required details and submit the form. Just a few minutes later, you’ll be notified if your loan has been approved. ” pros1=”Offers a higher borrowing limit” pros2=”Has a variety of lenders offering flexible repayment terms ” pros3=”Doesn’t charge a fee for the service” cons1=”Being a credit broker, the platform may not be appealing to privacy conscious borrowers” cons2=”Rates and borrowing trends aren’t constant” cons3=”” cta-label=”Apply Now” cta-url=”https://learnbonds.com/uk/visit/viva-loans” disclaimer-text=””] [in-content-heros-static name=”loan-shuttle” title=”5. Loan Shuttle – Best for emergencies” description=”In case of a delayed pay cheque, medical emergencies or any other unforeseen cash shortages, Loan Shuttle is your go-to platform.
For starters, this credit broker connects you to lenders who are willing to lend you as much £5,000 and a minimum of £100 depending on your financial emergency. The amount should be repaid within 2 and 36 months which is quite a long period, compared to what traditional lenders offer.
Even though the rates are relatively high, usually around 49.9% and 1333% APR, it’s possible to find a lender offering better rates suited to your cash flow. But the biggest advantage of using this platform is that its application is overly simplified which makes it a reliable source of emergency loans. ” pros1=”Offers a higher loan limit – ass high as £5,000″ pros2=”Simple and straightforward loan application process” pros3=”Reliable customer support” cons1=”The platform is a credit broker and not a direct lender” cons2=”Additional charges and servicing fee may be incurred” cons3=”” cta-label=”Apply Now” cta-url=”https://learnbonds.com/uk/visit/loan-shuttle” disclaimer-text=””] [in-content-heros-static name=”loanskipper” title=”6. LoanSkipper – Easy to use interface” description=”Loan Skipper connects borrowers to a long list of lenders, giving you an opportunity to choose one with the best lending terms and interest rate. The application process is done on the website whereby you’ll choose a principal amount of between £100 and £2,000 which is to be paid within 2 and 36 months at a 49.9% to 1333% interest rate.
Once your loan is approved you’ll then have to wait for about 24 hours for the funds to reflect on your bank account. This is such a long wait given that other lenders outside the platform take less than a day to disburse the funds. ” pros1=”The broker is licensed and recognized by the Financial Conduct Authority” pros2=”The site is highly secured to protect users financial details” pros3=”Has a simple and straightforward interface ” cons1=”Has a simple and straightforward interface ” cons2=”” cons3=”” cta-label=”Apply Now” cta-url=”https://learnbonds.com/uk/visit/loan-skipper” disclaimer-text=””] [in-content-heros-static name=”ocean-finance” title=”7. Ocean Finance – Access to a very wide pool of same day loan lenders” description=”Much like in the case of Very Merry Loans, Ocean Finance is a third-party loan platform that has the capacity to match you with suitable same day lenders.
However, the overarching selling point to Ocean Finance is that they are able to facilitate loans to those with credit scores that fall within the ‘poor’ or ‘very poor’ range. As such, if you need fast cash to cover a financial emergency, but your credit profile is damaged, Ocean Finance is potentially your best bet. In terms of the fundamentals, you can apply for a same day loan from just £100, with the maximum loan size capped at £10,000.
However – and as we discussed with Very Merry Loans, larger loan sizes will require enhanced checks on your financial standing, which will likely delay the same day funding process. Nevertheless, you can apply for a same day loan with a term of just 3 months, up to a maximum of 5 years. ” pros1=”Extended repayment period of up to 5 years” pros2=”Perfect for those with bad credit” pros3=”Performs a soft-credit enquiry that won’t hurt your credit score” cons1=”Ocean Finance is not a direct lender” cons2=”” cons3=”” cta-label=”Apply Now” cta-url=”https://learnbonds.com/visit/ocean-finance” disclaimer-text=””] [in-content-heros-static name=”peachy-loans” title=”8. Peachy – Best direct lender – Loans within the hour” description=”Peachy is a UK based direct lender that allows borrowers to apply for same day funding entirely online. The overarching benefit to using Peachy is that in some cases, you will have access to your loan funds in less than 1 hour.
This makes Peachy one of the fastest same day loan providers in the space. However, this does come at a cost. First and foremost, the lender advertises a representative rate of 720% APR. Not only is this expensive, but as you might well know, representative rates are typically the best rates on offer – meaning that unless your credit score is in good health, you’ll likely pay more.
It is also important to note that Peachy loans are capped at £1,000, so if you require a larger funding amount, then you might need to consider one of the other same day loan providers that we have discussed thus far. ” pros1=”Limited loan repayment period” pros2=”Most loans are transferred to your bank account within 1 hour of being approved” pros3=”” cons1=”High representative rate of 720% APR” cons2=”One is required to have a minimum monthly income of at least £1,000″ cons3=”” cta-label=”Apply Now” cta-url=”https://learnbonds.com/uk/visit/peachy-loans” disclaimer-text=””]
What is a Same Day Loan?
As the name suggests, a same day loan is simply a loan that allows you to access the funds on the same day that you make the application. As we noted earlier in our guide, such loans are also labelled as ‘instant loans’, although in reality, they are merely payday loans.
The reason for this is that unlike a more conventional personal loan or credit card application, same day loan providers will usually perform watered-down checks on your financial standing, which is why they are able to release the funds so quickly. However, this is also why the APR rates on same day loans are much higher, and why the size of the loans are much smaller.
Same Day Loans: How much can I borrow? APR fees?
As we have noted throughout our guide, same day loans will usually come with a much higher APR rate, as well as smaller loan sizes. This is to offset the risk of releasing the funds in such a fast amount of time. Nevertheless, we have broken down the size of the same day loan that you will likely be able to get, as well as its respective fees.
- Small loan sizes
If you require emergency cash on a same day basis, then this is likely because you need to cover an unexpected event. This could be anything from covering the costs of repairing your vehicle, or seeing you through the last few days of the month before you next get paid.
Either way, it is likely that the size of the required loan amount is much smaller than what would be required via a personal loan. Nevertheless, same day loan providers will typically cap the amount that you can borrow to £1,000. If you do need more than this, then the lender will likely need to perform additional checks, which can include supporting documentation. If they do, then same day funding is probably going to be out of the question.
- Higher APR rates
If you are happy to borrow an amount below £1,000 in order to obtain same day funding, then you also need to make some serious considerations regarding the underlying APR fees. While the specific amount payable will depend on the provider in question – as well as your current creditworthiness, you should expect to pay a rate of between 100% APR and 1,000 APR%.
In fact, you could end up paying even more, with the likes of Very Merry Loans explaining that some of their partnered providers charge up to 1,333% APR. However, the good news is that in late 2018, the FCA installed new regulations that caps the amount of interest that payday loan providers can charge. This amounts to £24 per £100 that you borrow, with the total interest payable never exceeding twice the amount borrowed. While this still represents a sky-high rate in APR terms, it does at the very least put some limitations on how much you end up paying on your same day loan.
Am I eligible for a Same Day Loan?
Whether or not you are eligible for a same day loan will depend on a number of factors. This includes the same day loan provider themselves, as well as your current credit score and income amount. In order to give you a clearer picture as to some of the metrics that same day loan companies look for when assessing your eligibility, check out the following list.
i) Credit score
If you are currently in possession of a healthy credit score, then you will likely have no issues at all in being approved for a same day loan. On the contrary, if your score falls within the ‘poor’ or ‘very poor’ threshold, then the chances of having your application approved are much lower. If you think that your credit score is less than ideal, then you might best off going with a lender that doesn’t run credit checks, and instead looks at other metrics such as your income.
ii) Annual Income
Regardless of whether the same day loan provider looks at your credit score, they will always assess your affordability levels by asking you how much you earn. Some lenders will state the minimum annual income amount, while others judge this on a case-by-case basis. With that being said, you will likely need to be earning at least £10,000 per year to stand a chance of being approved for a same day loan.
iii) Historical Relationship With Debt
Same day loan lenders will also need to look at your historical relationship with debt. On the one hand, if you have always paid your previous debt obligations back on time and thus – never missed a repayment, then you will stand a very good chance of obtaining a same day loan. On the other hand, if your credit report highlights multiple late or missed payments, or worse – defaults, then you might find it difficult to get a same day loan.[in-content-heros category=”payday-loans-loan-providers”]
Glossary of loan terms
A credit score shows your creditworthiness. It's primarily based on how much money you owe to loan or credit card companies, if you have ever missed payments or if you have ever defaulted on a loan.
Guaranteed Approval is when, no matter how bad, your credit score its, your loan application will not get declined.
A Credit Limit is the highest amont of credit a lender will lend to the borrower.
Collateral is when you put up an item against your loan such as your house or car. These can be repossessed if you miss payments.
A Cash Advance is a short-term loan that has steep interest rates and fees.
Your Credit Rating is how likely you are to fulfill your loan payments and how risky you are as a borrower.
Fixed Interest Rate is when the interest rate of your loan will not change over the period you are paying off you loan.
The Interest is a percentage based on the amount of your loan that you pay back to the lender for using their money
If you default on your loan it means you are unable to keep up with your payments and no longer pay back your loan.
If you miss a payment the lender will charge you for being late, this is known as a late fee.
An Unsecured Personal Loan is when you have a loan based solely on your creditworthliness without using collateral.
A Secured Loan is when you put collateral such as your house or car up against the amount you're borrowing.
This is the Interest Rate used by banks for borrowers with good credit scores.
The Principal amount the borrower owes the lender, not including any interest or fees.
A Variable Rate is when the interest rate of you loan will change with inflation. Sometimes this will lower your interest rate, but other times it will increase.
An Installment Loan is a loan that is paid back bi-weekly or monthly over the period in which the loan is borrowed for.
A Bridge Loan is a short term loand that can last from 2 weeks up to 3 years dependant on lender.
Having an AAA Credit Rating is the highest rating you can have.
A Guarantor co-signs on a loan stating the borrower is able to make the payments, but if they miss any or default the Guarantor will have to pay.
LIBOR is the London Inter-Bank Offered Rate which is the benchmarker for the interest rates in London. It is an average of the estimates interest rates given by different banks based on what they feel would be the best interest rate for future loans.
Home Equity Loans is where you borrow the equity from your property and pay it back with interest and fees over an agreed time period with the lender.
Debt Consolidation is when you take out one loans to pay off all others. This leads to one monthly payment, usually with a lower interest rate.
If you obtain a Student Loan to pay your way through College then you loan is held with the Department for Education U.K.
Financial Aid in the form of grants is funding available to post-secondary education students throughout the United Kingdom and you are not required to pay grant
How quickly can same day loan providers transfer the funds?
There is no one size fits all answer to this question, as there are simply too many variables to consider. On the one hand, if your credit profile is in good standing and the lender is able to verify your identity electronically, then you might be able to obtain a same day loan in less than 1 hour. On the flip side, if your credit profile is less than ideal, and/or the lender is unable to verify your identity, then this can delay the process by a couple of days.
How much can I borrow via a same day loan?
Due to higher risks of performing watered-down verification checks, same day loan lenders typically limit the funding amount to £100-£1,000.
How much do same day loans cost?
Same day loan providers are essentially payday lenders in all but name. As such, you could be paying anywhere between 100% APR and 1,000% APR - sometimes more.