What is a 12-month loan?

A 12-month loan is pretty much what is says on the tin – you can borrow a sum of cash, and you’ll have a year to pay back the borrowed amount plus interest. For example, if you’re looking to borrow £2000 over a year, and the interest rate is 99.9%, you’ll need to pay back £2,853, so that’s the borrowed £2,000, plus the £853 in interest. Take a look at our loan calculator to see how this is calculated

With a 12-month loan, you’ll usually pay back a small portion of the loan plus interest each month, so you’ll only need to pay back a fraction of the owed amount each month.

How much can I borrow and how do repayments work?

How much you can borrow really depends on the loan provider. 118 118 Money lets you borrow from as little as £1,000 to as much as £5,000, which means for smaller or unexpected expenses 118 118 Money loans are ideal for your situation.

Repayments for loans also differ according to the lender. Some will ask for fortnightly, monthly, quarterly or even yearly repayments, although this is less likely with 12-month loans. Some loan providers let you take the first two months off so you won’t need to start repaying the loan for a couple of months. With loans from 118 118 Money, we let you take the driving seat so that you can pick the term of your loan and you can manage your account online.

What do I need to be aware of with a 12 month loan?

There are some cases where you won’t be offered a 12-month loan, for example if you’re not earning enough money to repay the loan, that’ll be a red flag to loan providers and they won’t accept your application, so make sure you can afford to pay the money back within the 12 months you’re applying for. If you don’t think you’ll be able to raise the money within a year, why not try looking at a longer term loan of 18 months or 24 months, to spread the payments over a longer period?

Do make sure you check your credit report before you apply for a loan as this is used by loan providers to work out how likely you are to repay a debt. It’s important that you check your credit report with these companies to ensure that the data they have on-file about you is correct. If any single part of your credit file is incorrect, it could be the difference between an accepted loan and a rejected loan. If you think this may be an issue for you, take a look at our information on credit files.

In addition, some lenders base their loan decision entirely on your credit score. If you’ve got a poor credit history, many loan companies will reject you right off the bat without looking further. At 118 118 Money, we know you’re more than just a statistic and that is why we look at you and whether the loan you’re applying for is affordable in your current situation. If you’ve got a less-than-perfect credit score, don’t worry too much – we’ll look beyond the numbers and do our best to offer the loan that is right for you.

How do I get my hands on a 12-month loan?

You can apply for a 12-month loan here using our simple online application form, and we’ll try and give you a response within the hour. If your application is accepted, the money should arrive in your bank account within 24 hours and you’re ready to go!

If you don’t think a 12-month loan is the right type for you, we’ve got you covered as we also offer 18 month or 24 month loans. Be sure to check them out to see if they’re the right thing for you. We’ve also got a section dedicated to money advice with super-handy tips put together by our experts on budget planning, loan information and other useful financial advice.

Representative example: Amount of credit £1,800 for 24 months. Interest rate: 71.3% pa (fixed). 24 scheduled monthly payments of £142.65. Total amount payable: £3,423.67. Representative 99.9% APR.

Rates from 35.9% APR - 99.9% APR fixed.