Small loans are a new alternative when planning your future finances when a lump sum is required fast. Even with the most-savvy financial planning, there are times when people need access to larger amounts of money. Small loans are a quick, temporary and a hassle-free option for those wishing to plug this brief gap in their planned finances.
Uploan is a premium UK small loans lender, offering loans ranging from £500 – £2,000. By choosing Uploan, you will receive several unique repayment options, with the freedom to pay back your small loan from either 30 days to 12 instalments over a year, giving you more flexibility to repay your loan at your own pace.
What is a small loan?
A small loan is a unique solution to borrowing smaller amounts of money that are cheaper than payday loans yet not as much as a personal loan from a bank or building society, that has lower interest rates.
The concept is an alternative option for borrowing amounts typically above the payday loan threshold without the high interest. Alternatively, banks offer loans that are above £2,000, and this is a significant investment that requires a longer-term commitment.
It’s like a family member helping you out or your employer giving you an advance on your annual bonus wages without having to ask to borrow money from them.
Uses for a small loan
Small loans are great for when there is an expense that is higher than usual and requires a one-off lump sum.
Some of the reasons borrowers take out a small loan include:
- Buying a new car or equipment
- Going on a special holiday or other one-off purchases
- Planning for a wedding
- Home improvements
- Unexpected expenses
- Debt consolidation
Whether expected or unexpected, there comes a time when you will need to pay for a larger expense.
Maybe the car has broken down unexpectedly, and you need to buy a new one, or you are getting married and need to make payments towards the venue or dresses. Maybe you have decided to make some home improvements to add some value onto your property?
A small loan then is for those savvy borrowers who want to borrow low to mid-sized amounts yet avoid borrowing from high-interest rate lenders or having to borrow more than they need.
Whatever the reason for taking out a small loan, Uploan requires applicants to have a steady monthly income to avoid our customers falling into financial difficulty when they make their repayments. Should our customers experience problems with their repayments, they should contact us immediately.
Considering taking out a small loan?
A small loan is a prime example of finding alternative finance to personal bank loans what usually want you to borrow an amount over thousands of pounds or a payday loan that has a crippling interest rate.
Small loans should never be taken to pay off existing debt with lower interest rates. It only makes sense if the debt has an higher-interest rate like a payday loan or credit card, then a small loan could be seen as a sensible option for debt consolidation.
Taking several small loans simultaneously with several lenders is also a bad idea, as this could negatively impact your credit score having multiple small loans from numerous lenders.
Uploan is a responsible small loan lender, and as such, actively discourages those who apply for circumstances other than the examples listed above. Small loans must be repaid in full, together with interest and any outstanding fees.
When you take out any loan, including a small loan, you must repay the cost of borrowing on top of the loan itself, known as the annual percentage rate (APR), with Uploan’s current representative APR at 296.91%. Failing to pay back, will result in severe financial and legal consequences, for example, obtaining future credit.
Do I qualify for a small loan?
By choosing Uploan, you are guaranteed to get your small loan application approved with no paperwork and almost instant loan deposit. Uploan has made our online application for small loans the easiest in the business!
To qualify as a Uploan small loan approved customer, you will need to be one of the following:
- At least 18 years old
- Be a UK resident
- Receive a regular income (at least £600 per month)
- UK bank account with an active debit card
- Have a mobile phone (to verify your account)
Should you have a Country Court Judgement (CCJ) against you, then Uploan is unable to accept your small loan application. If you have no CCJ’s and have the above then merely provide us with your details and the small loan approval process can begin.
Repaying a small loan
Repaying your small loan is easy and straightforward with Uploan. Applicants can select the repayment period that suits their needs when applying for a loan. You can choose for how long you need the loan for and how many repayments you need to repay the loan.
You do not need to worry about how to make the loan repayments. All payments will be automatically collected on the due dates using continuous payment authority (CPA) which allows Uploan to collect the payments from the registered debit card without requiring separate authorisation for each withdrawal.
Customers can cancel their CPA with the bank or Uploan directly but would need to notify Uploan in advance and make other arrangements to pay what is due. In total, Uploan will make two attempts to collect the loan payment by using CPA.
If Uploan is unable to collect repayment on the agreed date, one of our team will attempt to contact you. If we are unable to contact you and payment is not made, a missed payment fee of £15 will be added to your loan balance. Interest will continue to be added to your balance.
Missing payments can have serious consequences. It can cause adverse entries to be listed on your credit file and make it more difficult to obtain credit in the future. Uploan can also take further action to recover any amounts owed, and you may be declined an advance from Uploan in the future.
The accrual of interest can also substantially increase the total cost of repayment of the loan, but customers will never have to pay back more in fees and interest than the amount borrowed.
Small loans should always be considered a temporary mid-term solution to your financial situation – so do your homework and find the right online solution for you.