Instalment Loans UK (2026)
Spread your repayments over months with an instalment loan — compare reviewed UK lenders and find the best rate for you.
An instalment loan is simply a loan you repay in fixed monthly payments over a set period — 3 months, 6 months, 12 months, or longer. Unlike a payday loan (which is repaid in one lump sum on your next pay day), an instalment loan spreads the cost into manageable chunks.
Most loans on our panel are instalment loans. Drafty offers flexible repayment over 1–3 years. 118118 Money offers 1–5 year terms. Cashfloat and Creditspring offer shorter terms of 3–12 months. The key difference from old-style payday loans is that you are not hit with the full amount in one go — you repay gradually.
Instalment loans typically have lower monthly costs than lump-sum repayment products, but you pay more interest overall because you borrow for longer. Always compare the total repayable — not just the monthly payment — to find the cheapest option. All lenders on our panel are FCA-regulated.
Who qualifies?
What helps your application
- ✓UK resident aged 18+
- ✓Regular monthly income
- ✓Active UK bank account
- ✓Repayments fit comfortably within your budget
Bad credit accepted
- ✓Most instalment lenders accept bad credit
- ✓Monthly payments are easier to manage
- ✓Consistent repayments build your credit score
Income types accepted
- ✓Employment income (any type)
- ✓Self-employment with evidence
- ✓Benefit income (lender dependent)
Speed
- ✓Same-day payouts from most lenders
- ✓Quick online application
- ✓Terms agreed before you borrow
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Independent loan comparison. Rates shown are representative; your actual rate depends on circumstances.
Warning: Late repayment can cause you serious money problems. For help, go to MoneyHelper.org.uk. Nudge Finance is an independent loan comparison site. We are not a lender and do not provide financial advice.
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Key Insight
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