Compare instalment payday loans

Compare live rates from a range of short-term lenders and learn more about instalment options.

Updated

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

Please note: High-cost short-term credit is unsuitable for sustained borrowing over long periods and would be expensive as a means of longer-term borrowing.

Table: promoted deals, sorted by total payable
How much do you need to borrow?


How long do you need to borrow for?


Name Product Available amounts Monthly repayment Total payable
Lending Stream Instalment Loan
£50 to £1,500
Representative example: Borrow £200 for 6 months at a rate of 292% p.a. (fixed). Representative 1,333% APR and total payable £386.61 in 6 monthly payments of £64.44.
QuidMarket Short Term Loan
£300 to £1,500
Representative example: Borrow £300 for 3 months at a rate of 292% p.a. (fixed). Representative APR 1,301% and total payable: £454.37 in 3 instalments of £151.46.
Savvy.co.uk Personal Loan
£300 to £3,000
Representative example: Borrow £1,000 for 12 months at a rate of 152.33% p.a. (fixed). Representative 352.7% APR and total payable £1,999.92 in 12 monthly payments of £166.66.
Sunny Loan
£100 to £2,500
Representative example: Borrow £100 for 8 months at a rate of 204% p.a. (fixed). Representative APR 568% and total payable £199.33 in 8 monthly payments of £19.93. You can repay this loan early.
The Money Platform Short Term Loan
£250 to £1,000
Representative example: Borrow £500 for 6 weeks at a rate of 255.5% p.a. Representative APR 839.20% and total payable: £647 in 1 payment.
Auden Short Term Loan
£200 to £500
Representative example: Borrow £500 for 91 days at a rate of 178.85% p.a. (fixed). Representative 430.77% APR and total payable £652.33. You’d pay two monthly instalments of £217.45 and your third and final payment would be £217.43.
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Please note: You should always refer to your loan agreement for exact repayment amounts as they may vary from our results.

What is an instalment loan?

Instalment payday loan example

Instalment loans are paid back in a series of regular chunks, rather than in a single lump sum at the end of the term.

Perhaps the most well-known example of an instalment loan is a mortgage, but all sorts of loans are paid off in instalments. Payday loans have traditionally been paid back in one lump, around payday. But since these loans have become popular, many payday lenders have also started to offer loans that can be paid back over a number of months.

Most commonly, instalments are paid on the same day each month – typically on or just after your payday – but the instalments could also be paid weekly. If you get paid weekly, you might find it more helpful to make weekly repayments, but not all lenders will offer this facility. In theory, the more regularly you make repayments on a loan, the cheaper it works out overall, but if a lender charges extra for the privilege, then this may not hold true.

Instalment loans can be appealing, because spreading repayment over a longer term makes for smaller, more manageable repayments, but crucially it also means that your loan will cost significantly more overall.

Each instalment is made partly of the capital you owe, and partly of the interest. In your first instalments you’ll be paying a lot of interest, but towards the end of the loan you’ll be paying less in interest.

Traditional payday loans vs instalment payday loans

Traditional payday loans

  • Borrow small amounts, typically £50-£250
  • Repay in a single payment on your payday
  • Loan terms of up to 30 days
  • High interest rates
  • High overall cost of credit

Instalment payday loans

  • Borrow larger amounts, typically £200-£1,000
  • Repay in smaller weekly/monthly instalments
  • Loan terms of up to 12 months
  • High interest rates
  • Even higher overall cost of credit

Should I take out an instalment loan?

No matter what you need to borrow money for, it’s always a good idea to opt for the lowest rate available to you. If you can afford to pay a loan back as a lump sum, this will usually be a more suitable option, as the total cost of the loan will nearly always be lower. If you do have to spread the repayments, aim to keep the duration of the loan as short as possible, while ensuring it’s affordable for you.

High-cost, short-term credit is an incredibly expensive method of borrowing and should only be considered as a last resort. These loans may not solve your money problems, and they’re not a good idea for borrowing over longer periods, or for sustained borrowing. If there’s any way you can defer the expenditure, it’s definitely advisable.

When you take out an instalment loan through a payday lender, you can expect the total cost of the loan to be a lot higher than most other traditional sources of finance. So only apply for this type of loan if you can’t get another type, perhaps due to a poor credit score.

Am I eligible for an instalment loan?

Your eligibility for an instalment loan will vary from lender to lender, and will be based on a number of things, including the amount of money you want to borrow, the duration of the loan, your income and outgoings, and your credit score.

It’s typically a bit tougher to be approved for an instalment loan than it is for one that’s being repaid in a one-off payment , because (in a lender’s eyes, at least) there are more opportunities for you to miss payments with a longer loan.

Dos and don’ts for instalment loans

Do

  • Compare lenders to find the lowest overall cost
  • Check your eligibility criteria before applying
  • Match repayments to your paydays
  • Choose as short a term length as you can afford
  • Aim to repay your loan early

Don’t

  • Submit multiple applications in a short space of time
  • Apply for a loan where you’ll struggle to meet the repayments
  • Opt for an instalment loan if you can repay your balance in a lump sum
  • Miss your repayments

Short-term, high-cost instalment loan

Jack had to borrow £500 to fix a problem with his car. Being on a low income, and with a bad credit rating, he decided to take out an instalment loan to fund the work.

His first step was to compare rates from multiple lenders, and, because he gets paid weekly, he also looked for a lender that would take repayments on a weekly basis. Once he found a suitable deal that he could comfortably afford to repay, he did a bit of research on his eligibility for the product. The lender he’d chosen offered a “soft search” facility (that didn’t impact his credit score) to see if he was likely to be approved. After being approved, he received the money within hours.

The lender used a continuous payment authority (CPA) to take repayments from his account on the same day of the week he was paid, so there was less danger of defaulting on the repayments. Jack cleared the debt after three months and got back on his feet, but overall it had cost him a huge £260 in interest to borrow just £500.

The bottom line

Payday loans are extremely expensive, and instalment payday loans even more so.

An instalment loan is going to be more comfortable for a lot of borrowers, especially when borrowing larger amounts of money. Many people find it easier making multiple small repayments than a single one. However, in the long-term, it’s more cost-effective to do the latter. So instalment loans should always be considered a Plan B. If you do go down this route, compare the best deals available and select the option most suited to you.

We compare payday/short-term loans from

Lending Stream Instalment Loan
QuidMarket Short Term Loan
Savvy.co.uk Personal Loan
Sunny Loan
The Money Platform Short Term Loan
Auden Short Term Loan

We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.

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