Sunny, one of the most well-known short term lenders, entered into administration in June 2020 and immediately ceased offering new loans to customers. If you're considering a payday loan, there are alternative options.
Sunny went into administration on June 29th 2020 and immediately stopped lending or taking on new customers. Existing customers of Sunny are being advised to continue to make repayments on their loans in the usual way. We’ve kept this page live for historical purposes. Product information relates to the loans Sunny was offering shortly before it collapsed.
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.
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With no application, admin, or late payment fees, Sunny short term loans were straightforward and transparent, but very expensive.
Sunny payday loans weren’t actually “payday” loans, in the true sense. Along with many other similar lenders, Sunny opted to offer an alternative to traditional payday lending (where you’d borrow over a very short period of time, and make a single repayment on your payday). With a Sunny loan borrowers would make a repayment each month, which paid off part of the capital (the original amount borrowed) as well as the interest accrued so far.
Payday loans are a bit of a dirty word, so it’s no surprise that lenders would want to distance themselves from them. However borrowing over longer periods usually works out more expensive overall, despite smaller individual repayments.
While Sunny offered flexible loan amounts between £100 and £2,500, it also set your loan term based on how much you borrow, which could limit your flexibility when it came to repaying the loan.
Product Name
Sunny Loan
Available Amounts
£100 to £2,500
New customer maximum
£2,500
Loan terms
6 months to 14 months
Maximum APR
1,617%
Soft search eligibility check
Funding speed
Sunny says it processes applications 24 hours a day, every day, and usually transfers funds within 15 minutes of approval. In some cases, for larger loans, funding may be the next working day.
Once you’d chosen the size of your loan and filled in your personal details, Sunny would assess your application, running a credit and affordability check. Having bad credit didn’t necessarily mean your application would be declined. If your application was approved, Sunny aimed to get your cash to you within 15 minutes.
Your monthly repayments would be taken via a Continuous Payment Authority (CPA), on a regular basis, on an agreed day of the month. You’d pay interest of up to 0.8% each day on the loan.
How much did Sunny short-term loans cost?
The cost of your loan would depend on how much you needed to borrow and the rate you receive. Sunny short-term loans had a maximum APR of 1,617%.
Sunny is no longer taking loan applications due to the company entering into administration.
How do I apply for a loan from Sunny?
Historically, if you’d decided on a loan with Sunny, you would first of all check your eligibility on the site. You’d need to give some basic details about yourself, including three years of address history. If the verdict was that you’d stand a good chance of being approved, you could opt to apply for the loan you have in mind. If accepted, you could have received your money within 15 minutes.
Were Sunny loans safe?
Sunny was the trading name of Elevate Credit International Limited and authorised and regulated by the Financial Conduct Authority. Under these regulations, your personal data would be shared with credit reference agencies and fraud prevention agencies.
In terms of financial security, short-term loans such as those offered by Sunny can cause financial stress, especially if you don’t make your repayments on time.
Could I change my loan?
Sunny offered a very respectable level of flexibility. You could repay early at anytime and only pay interest for the days on which you borrow. You also had a cooling-off period in which you could cancel the loan (you would be charged interest for the days when you had the funds though).
Sunny also allowed existing customers to take up to four loans at the same time (probably not a great idea). However, these would each be subject to credit and affordability checks. Remember, short-term loans are for unexpected costs and are not a long term solution. Before taking a loan, make sure it’s enough to cover your costs, but also affordable.
Option to change repayment date
Repay early at any point
Repaying early can reduce overall interest
Interest is only applied to days where funds are outstanding
Like most short-term lenders, Sunny provided convenient loans with quick turnaround and short repayment terms. While Sunny offered a wider range of loan amounts compared to some of its competitors, your repayment schedule was fixed based on the size of your loan, and this can have a big impact on how much you pay in interest.
As with any short-term finance option, a Sunny loan was likely to be one of the most expensive forms of borrowing available and should only have been considered as a last resort.
Frequently asked questions
Sunny required your employer details, bank and debit card details (including sort code and account number), as well as three years of address history. They also needed details of your income and expenditure, including any current financial obligations, to make sure the loan is affordable for you.
You were able to check the status of your application with Sunny by logging in to your online account (no longer available). In some cases Sunny needed more information from you and would have contacted you to get this via email.
If you have any questions about the application process you can contact Sunny’s Customer Support Team on 0800 7315 444 or help@sunny.co.uk.
You were able use Sunny’s eligibility checker to find out if you were likely to get approved or turned down. This involved a “soft” search of your credit file, and wouldn’t have affected your credit score.
Crucially, having bad credit that doesn’t necessarily mean your application would be declined.
IF you chose to proceed with a loan application, then like all responsible lenders, Sunny would run a full credit search with a credit reference agency (CRA).
If your application was declined you could try again at any time, but the outcome would not change unless your circumstances had. Remember that each application you make will have left a footprint on your credit file.
Applying for a sunny loan would leave a footprint on your credit file. But before applying you could use the eligibility checker, which won’t (no longer available).
Although Sunny charged no fees for late payments, late repayments can cause serious damage to your credit score.
Sunny would transfer funds to a valid UK bank account, but wasn’t able to send funds to prepaid debit cards such as Monzo or Revolut cards.
Following approval, Sunny would normally send the money to your nominated account within 15 minutes. Most UK banks would then credit this to your account within one hour.
Sunny’s applications process ran 24 hours a day, 7 days a week, and that included bank holidays – normally sending funds to your nominated account within 15 minutes of approval.
Sunny was part of Elevate Credit International. You can get in touch by calling 0800 7315 444.
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Chris Lilly is a publisher at finder.com. He's a specialist in credit-based products including business and personal loans, mortgages and credit cards, and is passionate about helping UK consumers make informed decisions about their borrowing. In his spare time Chris likes forcing his kids to exercise more.
Considering a Sunny short term loan? Use our calculator to work out how much you’ll pay back. You can also compare Sunny against the competition and make sure you’re getting the best deal.
Borrow up to £2500 with a Sunny loan and avoid any hidden fees. Apply online using Sunny’s simple online application and receive your funds within 15 minutes.
Sunny.co.uk is a popular provider of fast, flexible, short-term loans online. But it isn’t alone – here are lenders offering a similar service to Sunny.
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