Instalment Loans

What is an instalment loan?

An instalment loan is like other personal loans in that it can be paid back over an agreed period. This is usually in the form of a set monthly payment, with interest based on the length of the repayment period and your own financial circumstances.

Instalment loans give you flexibility to choose the amount you want to borrow and the length of your repayments, between one and 30 years. This way you can pick a time frame that allows you to keep up with the repayments. Just bear in mind that the longer the loan term, the more it will cost overall.

Is an instalment loan right for me?

Instalment loans allow you to spread the cost of your borrowing, which makes paying back your loan more manageable.

You should make sure you can comfortably meet the repayments, to avoid affecting your credit score or losing your property, in the case of a secured loan.

Before applying for an instalment loan

Whether you choose to take out an unsecured or secured instalment loan, it’s important to consider the following before you apply:

Your income and expenses

Familiarise yourself with your regular incomings and outgoings in advance, to check you can meet the repayments each month. Lenders also tend to ask questions about this during your application, so it’s good to be prepared.

Your credit history

It’s also a good idea to run through your credit report, as lenders may want to see your credit history, including CCJs, to determine the interest rate of your instalment loan.

Loan purpose

Lenders usually ask about the purpose of your loan, so make sure you have a clear reason for your application.

Am I eligible for a loan?

When applying for an instalment loan, there are several eligibility factors lenders tend to look at:

• Your current credit score and history, along with any CCJs
• The amount you want to borrow
• Your preferred loan repayment term
• How much you afford to repay each month
• Your employment status, such as self-employed or retired.

With access to over 600 loan products, Norton Finance can find the right service for you, no matter your financial situation.

Take a look at our article about loan eligibility for further advice on applying for a loan.

What do I need to apply for a loan?

You can apply for an instalment loan using our easy online application process, just select the amount you’d like to borrow. Afterwards, we’ll get in touch to discuss your details, so try to have the following to hand:

• Personal financial details
• Employment status
• Income details

Once we have all the information we need, we can often give you an answer on your eligibility right away.

Representative example

SECURED LOANS - Rates start at 2.99% variable. We also have a range of plans with rates up to 65.2%, giving us the flexibility to help you find a loan that suits your needs.

Representative example: if you borrow £10,000 over 10 years at an Annual Interest Rate of 5.14% (variable), you would make 120 payments of £122.71 per month.

The total amount repayable will be £14,725.20. This includes a lender fee of £495 and a broker fee of £1,000, both of which have been added to the loan. The overall cost for comparison is 8.6% APRC representative.

The maximum APR is 65.2%.

Affordable instalment loans

A common misconception about instalment loans is that customers with poor credit will always be refused, or that applying could negatively impact your credit score. So long as you meet the repayment terms each month, taking out an instalment loan could have a positive impact on your score.

By regularly paying back the loan each month as agreed between you and your lender, you can demonstrate that you are a reliable borrower and your credit score may improve over time. This can boost your chances of being accepted for other types of credit in the future, even if you’ve been rejected by other lenders previously.

Commonly asked questions

Have questions about long-term instalment loans? Find answers to some of the most common queries below.

Can I pay off a loan early?

It’s always possible to pay off your loan balance in full at any time. However, choosing to repay the debt in full may incur an Early Repayment Fee on top of what you owe. Always check the terms of your loan to help you understand early repayment fees.

Can I take a break from paying back my loan?

Some instalment loan lenders in the UK offer ‘payment holidays’, which allow you to take a break from repayments. This might show up on your credit report, so check the terms before you sign up.

Instalment loan details

With access to over 600 plans, we could help you find a loan to suit your needs. Find out more about taking out an instalment loan with Norton Finance.

How much can I borrow?

Norton Finance can help you borrow anywhere between £3,000 and £500,000.

How long are the repayment terms?

Depending on your financial situation, and what you can comfortably afford to pay back each month, terms last from one to 30 years.

What are the interest rates?

The rate you are offered depends on a variety of factors, including your current credit score and credit history. Secured instalment loan rates for homeowners start at 2.99%.

Are there any loans fees?

We’re a broker – not a bank. We receive a commission from the lender once a loan application is completed and charge a broker fee on secured loans. This can go up to 12.5% of the loan amount, to a maximum of £3,995. We do not charge fees on unsecured loans.