Representative example on a loan of £200 repaid after 30 days: Total charge for credit: £248 Payable in one payment of: £248 Interest: £48 Interest rate: 292% p.a. Representative APR: 1223.6%
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VERIFIED 18/08/2025
Firstly, this is an installment loan that can be repaid with 3 affordable repayments. These type of payday loans are more efficient and stress free if you are in a financial struggle to keep up with an unexpected bill or you have exhausted most of cash.
Installment loans can range from £200 to £2,000 depending on several checks. Lenders tend base their requirements over your disposable income. Disposable income is calculated by subtracting all expenses, commitments from your monthly income. This figure will allow the payday underwriters to analyse whether you would be able to afford the repayments or not.
If you fit the criteria for 3 month payday loans but the amount repayable per month is not affordable, don't worry, lenders tend to offer a lesser amount that you originally applied for. Although this is not what you have applied for, you still would have the option to cancel or continue. A £300 may give you a calculated total balance of £372 which can spread and repaid into 3 monthly chunks. According to this example, you will be paying back just £72 per month for total of 3 months. In comparison with short-term payday loans, repayment is split into three amounts rather than one single payment thus giving you most flexibility in repaying the loan back.
Please note, payday and 3 month installments also are cheaper if you settle early. Please do ask if you have questions about settling early. Paying back your loan before the due date is cheaper as the interest would be reduced by the amount of days till the day you intend to settle the loan by.