Small loans

A small loan can help you cover an unexpected cost or spread an expense over time. See if you’re eligible for a Zable loan with our quick eligibility checker - it won’t impact your credit score.

  1. Rates from just 8.1% APR

  2. Link your bank account to give a fuller financial picture

  3. Most approved customers receive their loan in less than an hour

32.5% representative APR.

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Representative Example:

Assumed borrowing of £7,500 over 36 months at 32.5% APR representative. Monthly cost of £312.15. Total amount repayable of £11,237.40. Interest rate of 27.0% p.a. (fixed) and total fees of £440.00. From 8.1% to 49.9% APR. £1,000-25,000 over 1-5 years available.

Illustration showing characters around a successful loan quote interface
Illustration showing characters around a successful loan quote interface

Why choose Zable for your small loan

  1. Transparent

    What you see is what you pay - your price includes the loan setup fee

  2. Personalised interest rates

    Based on your circumstances

  3. Fast decisions

    Get a quote in minutes online with our simple form

  4. Same-day funds possible

    Most customers have their funds in less than an hour

How to apply for a small personal loan

We offer loans from £1,000 to £25,000 and repayment terms from 1 to 5 years. To get started, follow these three easy steps:

  1. Quick eligibility check

    Receive a personalised quote without affecting your credit score.

  2. Apply for your small loan online

    You can then move forward with your official application.

  3. Receive your funds

    When your application is complete, money is sent directly to your bank account, typically within the hour.

Illustration showing the three easy steps to a loan
Illustration showing the three easy steps to a loan

What is a small loan?

A small loan lets you borrow a small amount of money from a lender. In exchange, you pay a loan fee and interest as part of your repayments.

To compare the cost of small loans, look at the APR (Annual Percentage Rate). The APR represents the yearly cost of the loan including interest and loan fees, expressed as a percentage. The higher the APR, the more you’ll need to pay.

Small loans are typically ‘unsecured’ personal loans. This simply means they aren’t tied to an asset (like your home), so you aren’t at risk of losing it should you be unable to make your repayments.

Instead, you are lent the money based on your credit profile and financial situation. The lender basically assesses the risk of lending to each individual before deciding 1) whether to approve the loan application and 2) what interest rate they’ll charge. 

A small personal loan is not the same as a payday loan. Payday loans often have extremely high APRs and a quick turnaround requirement for repayments.

What can I use a small loan for?

A small loan can be used for almost anything - there doesn’t have to be a specific purpose for it. You may need to cover an unexpected cost, like a broken boiler or a car repair, or you might need some help with costly life occasions, like a wedding or home renovation.

As with almost any personal loan, there are some exceptions. For example, you should not use the money for gambling or other high-risk activities like stocks and crypto investments. If in doubt, check your loan agreement. 

Can I get small loans with bad credit?

It is possible to get a small loan with bad credit.

At Zable, we are able to consider factors such as your income and spending habits when assessing your loan application, rather than a credit score alone. This gives customers who have been automatically rejected elsewhere a chance of approval. We do this with technology called ‘Open Banking’.

Remember, while it is possible to get approved for a small loan if you have a low credit score, the loan is likely to have a higher APR than one offered to people with a good or excellent score.

How can I get approved for a small loan?

There is no such thing as a guaranteed loan, however, improving your credit score can potentially help your chances and unlock better rates. To do this, follow these tips.

Illustration of a credit score shown on a tablet

1. Correct errors on your report

Check your credit report and correct any mistakes. If your report has an old address or says you aren’t registered to vote, this could impact your credit score. If you spot a payment that’s been wrongly reported as late, it’s important to contact the credit reference agency to have it corrected.

Illustration of a stack of bills with a stamp on

2. Pay your bills on time

This is a very important step. Make on-time payments for any credit cards, loans, and other financial obligations you may have (like mortgages and household utilities). Setting up automatic payments is a great way to ensure you never miss a payment.

Illustration of a three credit cards and a plus symbol

3. Avoid maxing out your credit cards

Using a smaller percentage (ideally 30% or less) of your total available credit limit can potentially improve your score as it suggests that you manage credit responsibly. For example, if you have a £1,000 credit limit, try and use £300 or less.

Illustration of a magnifying glass being cast over a stack of paper

4. Limit credit applications 

Though you can assess your eligibility for loans and credit cards from Zable without impacting your score, a full application will result in a hard credit check. Hard checks can cause a dip in your score, so it’s best to only apply for new credit 1) if you truly need it and 2) after you’ve done an eligibility check.

Things to consider before taking out a small loan

1. The total cost

Remember that you will always pay back more than you borrowed due to interest and origination fees. The APR percentage represents this cost. For example, if you have a 32.5% APR, it basically means that for every £100 you spend and don't pay back for a year, it will cost you about £32.50 in interest and standard fees. 

2. Your monthly repayments

Check that you can comfortably afford your monthly loan repayments after your pre-existing essential living costs, like rent, bills, and food. 

3. The impact to your credit score

While a Zable eligibility check won’t impact your credit score, a full loan application will. A score dip caused by a loan application should only be temporary, provided you then make your repayments on time each month. On the other hand, missing payments can cause a further decline.

4. Its necessity

Consider whether this small loan is to cover a ‘want’ or a ‘need’. Money for an urgent repair, for example, is more necessary than money for a holiday. 

Financial expert, Adam McAllister
"If you're after a small amount of money, a loan is just one option. A credit card could make more sense for amounts under £1,000. You might also want to check whether you're claiming all the government benefits you're eligible for, or whether friends or family could help. If a loan is right for you, take a moment to review the terms so you know exactly what you're committing to - including the total amount you'll repay with interest and fees."
Adam McAllister

5 years in financial services

Alternatives to small personal loans

1. Credit cards

A credit card could make more sense if you need less than £1,000. If you spend on a credit card and pay off your full balance the next month, you can avoid interest. A card with a 0% APR introductory offer can be an especially good option, as it means you can avoid paying interest if you pay off the balance within the longer introductory period. It may also be possible to get a credit card if you have bad credit, but with a higher APR.

2. Borrow from friends and family

This can be a great alternative to taking out a small loan as it allows you to avoid interest and fees entirely. Just remember to only borrow from those you trust and be sure you can pay them back. It’s a good idea to write down the terms of your agreement to avoid any strain to your relationships.

3. Seek support

In the UK, you may be eligible for financial help from the government. For example, those on an income-based benefit may be eligible for a budgeting loan of up to £812, with a decision made within 7 days (if you’re happy to be notified by text or email). You only have to pay back the amount you borrow, with repayments automatically taken from your benefits. Check what financial support you can get before starting your loan application.

Small loan FAQs

How can I get small loans online?

To get a small loan online with Zable:

  1. Use our ‘soft search’ eligibility checker to see if you’re likely to be accepted and get a quote without impacting your credit score.

  2. Submit your full loan application online following our instructions. You may be prompted to link your bank account via Open Banking. Open Banking is a secure way to share your banking data, allowing us to verify your personal information and confirm that the loan is affordable.

  3. Once the application is complete and approved, the money will be sent directly to your bank account, usually within the hour.

Is a small loan the easiest to get?

Not necessarily. How easy it is to get a loan depends on your credit score and financial situation, rather than the size of the loan. Someone with excellent credit is likely to find it easier to secure a loan than someone with bad credit, regardless of the loan size.

How long does it take to get a small loan​?

This can vary lender to lender. At Zable, you receive your loan the same day you apply for it (if approved), often within an hour.

Do small loans help build credit?

This depends on how you manage it. A small loan can build your credit if you consistently make your repayments on time, as it demonstrates that you are a reliable borrower. Lenders also like to see that you can handle different types of debt (e.g. credit cards, loans, mortgages).

However, if you miss or make late payments, you can harm your credit score. The process of applying itself can also cause a temporary dip in your score as it prompts a ‘hard’ check. 

Can I get a small loan with no job?

It may be more difficult to get a small loan when unemployed, but it’s not impossible provided you have another reliable source of income. At Zable, we require you to get paid at least £800 per month.

What do you need to get a small loan?

To get a small personal loan, you’ll need to at least meet basic eligibility criteria. You must be at least 18 years old, reside in the UK, and have a current account at a UK bank or building society.

How can I get a small loan fast?

To get a small loan quickly, opt for reputable lenders that leverage technology like Open Banking. By using Open Banking, you can quickly and securely share a snapshot of your transactions and save time uploading documents to be reviewed.

At Zable, we can provide a quote within minutes and pay approved customers the same day, usually within one hour.

Can I use a small loan to pay off another loan?

It is possible to use a new loan to pay off an existing one - this is a process known as debt consolidation. This can be a smart move if the new loan has a lower APR. However, avoid entering into a debt spiral. If you’re struggling with debt, contact your lender and seek help from debt charities such as StepChange or National DebtLine. 

Ready to apply?

Apply online