A short term loan is a cash loan payment borrowed for a brief amount of time, and can either be paid back in one lump sum or paid back in instalments. Typically, short term loans are designed to help you out if you’re in a fix and need access to cash in an emergency. A short term loan should never be used for long-term financial assistance, but instead to help in some of the following scenarios:
- Unforeseen expenses that may arise due to a family emergency
- An unexpected bill
- A problem with your car
- Needing to replace a broken appliance
We also offer payday loans and don’t charge any fees, so you can save money on interest by paying back early!
Whatever your circumstances are, PiggyBank are here to help.
Not sure if you qualify? You can find more information on our eligibility page
How Does a Short Term Loan Work?
PiggyBank short term loans are flexible! You can borrow from £100 to £1000, and choose to pay it back from 7 days up to 5 months.
The FCA (Financial Conduct Authority) have recently capped interest rates, which means you can only be charged a fixed rate of 0.8% per day. This is intended to stop loans from becoming too expensive. So if you pay back your loan early, you will save on interest.
How is it Different to a Payday Loan?
A short term loan is similar to a payday loan, but the difference is that a payday loan is paid off in one amount - typically when it is payday. A short term loan could be paid over several weeks or months to suit your financial situation and so help you to spread the cost of borrowing.
What Are The Benefits of a Short Term Loan?
There are a number of advantages to taking out a short term loan with PiggyBank:
- Fast Access to Cash – When you need it most we'll have an answer for you quickly. Our 100% online application process is simple and if approved we aim to have the funds transferred directly into your bank account within an hour.
- Flexible Repayment – No one wants to owe money for a long time. PiggyBank has lots of repayment options, and there are no fees for paying off your loan early.
- Improve Your Credit Score - Paying short term loans back on time and in full can help you rebuild your credit score with a view to future applications for loans, mortgages and hire purchases.
Which Lender Should I Choose?
There are a lot of lenders and short term loan companies out there, but it is important to shop around and look out for a few key aspects:
- Make sure you know if you are applying with a direct lender or a broker, as fees may apply. PiggyBank is a direct lender, and we do not charge any fees for applying for a loan.
- All lenders in the UK must be authorised by the Financial Conduct Authority (FCA). You can check the register here by typing in the company name or registered FCA number.
- Before you accept the terms of a loan, all lenders must advise you how much the loan will cost including interest and the dates you are due to make your repayments to repay your loan in full.
How Do I Apply?
We’ve made our application simple! All you need to do is use the application form sliders to work out how much you want to borrow and when you want to pay it back. You’ll be able to see how much interest there is on the loan amount.
Then use our straightforward fully online application to enter a few details about yourself and we will perform a credit and affordability assessment to see if you are suitable to be accepted for a short term loan from us. For more information on our application process, take a look at our application help area.
Once you have been approved, you can expect to receive the funds directly into your bank account within one hour. You will always be shown clear details of how much you are expected to pay back and when the payment is due.
If you are not accepted immediately, don’t worry- if we need to run a few more checks through your application you will be passed on to our Underwriting Team. This is to ensure we are lending responsibly and you are able to pay back the money without putting yourself in financial difficulty. As a responsible and transparent lender, PiggyBank will never take advantage of those who are not in a position to pay back a loan.
Here at PiggyBank we are committed to making your repayment journey trouble-free. Have any questions? Get in touch.
What If You Are Unable to Make a Payment?
Many unforeseen circumstances can lead you to not be able to keep up with the loan instalments. Don’t bury your head in the sand! At PiggyBank we understand these uncomfortable situations and are more than happy to speak to you to help manage your short term loan repayment in an affordable way.
Is a Short Term loan Right For You?
Before you take out a PiggyBank short term loan, you must consider whether borrowing is the right thing for you financially. If you can control your spending or delay purchasing non-essential things, do that. If you are borrowing money to make repayments on other credit, you may be in a vicious circle and it might not be the best thing to do. If you think you need help with your debts, you can contact the Step Change Debt Charity service at www.stepchange.org.