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Cheapest 3 Month Loans Online | Top 10 UK Lenders

A 3 month loan is an ideal substitute of a payday loan. Repaying a few hundred pounds over a single month can be tricky for those living on a tight budget. The same customer should fair much better when the balance is spread across 3. This is boosted further since the interest rate itself is lower. This is either lower by standard or through the capped rate (0.8%) cutting against a reducing balance. There aren’t that many lenders that specifically target this niche. One such firm that has done over the years has been WizzCash. The majority of instalment lenders tend to offer 6 months or more, that just means in the process that 3 becomes an option.

Remember that most lenders are happy to accept early settlements that pass on rebates. This micro niche hasn’t been effected by the FCA’s capping since most of the firms already charged less than 0.8% daily. The number of competing companies has in fact increased significantly through many payday lenders becoming more flexible. This has been common since offering monthly on its own is no longer profitable (even Wonga has made the change). The cheapest 3 month loans online will follow in a top 10 countdown. For the examples below, we sampled the charge of a £300 sum when borrowed over 90 days. The actual cost will however depend on what day of the month you are paid. The companies below are linked once profiled.

Related: Browse All the Lenders (40 Brands)

Cheapest 3 Month Loans Online UK

10) H&T Finance (£134.40)

H&T Finance Loans

We begin with the market leading pawnbroker who have built up a network of 190 shops across the UK. They have a proud history that heads all the way back to the year 1897, but they have only been providing direct funding online since 2015. They allow customers to spread the cost for up to 2 years for those seeking bitesize repayments.

9) Oakam (£129.78)

Oakam Loans

We then move on to Oakam who are well known across the area of London that is where their 22 lending stores are located. As well as an instalment package, there is a personal loan option where they head up to £5000 over 3 years max. This lender takes a chance on borrowers who may not qualify elsewhere. There is a specific targeting for instance of people who have lived in the UK for just 6 months or more. They also make their site available in 20+ languages.

8) Satsuma Loans (£129.26 to £142.80)

Satsuma Loans

Provident’s Satsuma brand arrived in 2013 and yet they have already become the most popular lender listed today, perhaps with the exception of The Money Shop. The service delivered is a flexible one with repayments heading all the way up to a full year. They lend first time customers £1000 max, but in time £2000 is possible. The cost of £129.26 is set when repaying weekly whilst £142.80 covers monthly.

7) Pogo Loans (£115.59)

Pogo Loans

Fire Capital’s Pogo Loans is one of the newer brand releases that debuted back in 2015. This lender’s popularity had an early spike, but started to drop off and they haven’t been advertising much in 2016. When they started out they did allow a single month to be opted for as well as 2 and 3, but this was recently changed. It would so appear that companies like Pogo just want to leave behind the stigma that now comes with “Payday”.

6) Credio (£112.20)

Credio Loans

Dormant company. See profile for more info. £112.20 also wouldn’t be possible since they now cap sums at £200. The £150 charge would be £56.10.

5) The Money Shop (£110.97)

The Money Shop Loans

The Money Shop started out on the high street in 1996, but they only started lending out of their own pocket online in 2015. It was essential for them to do this since their retail network has took a significant hit, with their original 550 shop count dropping to approx 300. Flexible terms are offered between the range of 3 and 12 months. Their business hours run between Monday and Saturday, but existing customers can access funds on a Sunday.

4) Kabayan Finance (£109.94)

Kabayan Finance Loans

Kabayan just comes in a little cheaper than The Money Shop. This has been the first lender geared at the UK’s Filipino community. They offer their customers as much as £1000 over monthly options of 1, 3, 6 or 12. Whilst they are fully licensed, their payday term doesn’t meet the legal cap that is something to be wary about.

3) The Money Platform (£81)

The Money Platform Loans

Gracombex’s Money Platform is a brand new short term peer-to-peer network for 2016. The price estimate shown is a hypothetical example. This is since they don’t enable £300 to be selected (they jump from £250 to £500). Their repayment term is also 84 days and not 90. Based on daily interest charged at 0.3% this would generate the £81 price. Applicants must have a good credit score and also be aged 20+ to qualify.

2) Quick Loan Shop (£76.14)

Quick Loan Shop Loans

Only £300 is available over a single month here, with the instalment amounts ranging between £400 and £2000. Due to this we have split a £600 amount (£152.28 to £76.14). This is good value that was also seen from the owner in the payday comparison through their new Sunshine Credit brand.

1) Drafty (£48.60)

Drafty Loans

My Home Finance did offer £42.13, but they have recently closed down and in steps Lending Stream’s Drafty service that was also the top ranked company in our payday top 10. The charge of £48.60 is very reasonable that is calculated based on their low daily interest of 0.18%. This product has no such determined term, with the credit facility being there when you need it alike an overdraft from your bank. As the case with any decent overdraft, sums can be requested 24/7. The qualifying limit for new customers is £3000 that can later be topped up to £5000. From any such limit, tiny draws can be made from it, initially for £50 and then £20 on reloans. Based on the excellent value, they are extra picky in comparison to Lending Stream.

Data Last Updated: November 2016.