12 Month Loan

A 12 month loan can be described as a small loan which you could borrow and pay off in a year. These loans usually run for 12 months so the name.

A 12 month loan can be used for some unexpected expense. For these expenses, you don’t have any money kept aside in your monthly budget. So if that expense needs a minor financial help you go for a small loan like a 12 month loans. This helps you to go for something that you can afford instead of long-term loans which go on for years.

For example, you can make use of a 12 month loan in situations like house repair (ceiling fixes, or new door lock installations), car servicing or repairs, kid’s project or some bills which you need to pay off. Situations like this do not require a large sum, so this small loan could be more comfortable for you.

How Much Can I Borrow in a 12 Month Loan?

Now you know what a 12 month loan is, but the main question which lurks in your mind is “How much can I borrow?”

In a 12 month loan, you can borrow a minimum of £200 and a maximum of £5,000. Many lenders provide an instant loan, and also with low APR. Some of them charge an APR as low as 2.97%. However, the APR differs with people and their credit score.

Can I Borrow a 12 Month Loan for Bad Credit?

Yes, you can get 12 month loans bad credit. It does not matter if you have a poor credit or no credit at all, you can get a loan. However, the APR will be high for you because of the bad credit. Lenders now also don’t look for a guarantor if they want to lend you a loan for poor credit. So, it makes easy for people who have a poor credit and no guarantor to borrow a 12 month loan.

The lenders will provide you with an amount on the basis of your credit score and how much you will be able to afford. They will see to it that you don’t get an amount of which you can’t make monthly repayments.

How Can I Apply for a 12 Month Loan?

Almost everyone is eligible for a 12 month loan in the UK. However, there are certain criteria that you need to fit in in order to borrow. The criteria are as follows;

• You must be employed and have a source of income
• Your age must be between 18-65
• You must have an active UK bank account

If you fit the above criteria, you can get a 12 month loan easily. All you have to do is fill in the application form on the lender’s website. After filling in the form just click the submit button and the lender will contact you with further details.

Read more:
What Are Unsecured Loans?