Compare 12 Month Loans From Direct Lenders

Compare 12 month loans with these lenders and brokers and choose one with a low APR to save money in interest.


Checking won't affect your credit score

Powered by

How it works


Check your eligibility

Answer a few quick questions. This will not impact your credit score.


Compare personalised loans

See the exact amount you’ll need to pay each month – no estimates.


Apply online

Complete your application on the lender website. You could get your money in hours.

See the interest rate you’re eligible for before you apply

With real interest rates you'll see exactly how much you’ll need to pay each month. And which lenders will pre-approve your application before you apply.

12 results found, sorted by lowest representative apr. How we order our comparisons.
Monevo Personal Loan
Loan amount
£1,000 to £35,000
Representative APR
10.6% APR (£15,000 to £19,999)
Loan term
1 year to 5 years
Monevo is a credit broker and not a lender.
Representative Example: The representative rate is 10.6% APR (fixed) so if you borrow £15,000 over 5 years at a rate of 10.6% p.a (fixed) you will repay £319.57 per month and £19,174.37 in total.
Credit rating acceptedpoor
Guarantor requiredfalse
Maximum AgeUnlimited
Minimum Age18 years
Minimum income£7,000
UK Resident

We are classed as a credit broker for consumer credit, not a lender.

Our services are provided at no cost to you. We may receive a commission from the companies we refer you to, but this does not affect what you will pay for the product you choose.

Powered by Monevo to show you real rates

Your personalised bad credit loan results are powered by Monevo. They make sure you only see real interest rates. Not just estimates like some lenders show you.

Last updated: 16 December, 2020

What are 12 month loans?

These are short term loans that repay over a 12 month period through fixed monthly instalments. These can be useful for borrowing a small amount of money e.g. £3,000 to £7,000, although you it is possible to borrow much more.

What can you use a 1 year loan for

These loans can be used at any point, whether you need to pay for an unexpected expense, or if you foresee a period where you might need some extra cash to cover regular expenses

A 12 month loan can also be used for planned expenses such as making home improvements or taking a holiday. But it's important that before your take out any loan, you have a plan in place to repay it.

Is it better to get a credit card instead?

Whether you opt for a credit card or loan depends on how much money you need to borrow. A loan may be a better option if you want to borrow a large amount of money and can afford to pay the fixed monthly payments.

Typically, the more you borrow, the lower the loan’s APR. APRs can be as high as 30% for loans of £1,000 but as low as 3% if you’re borrowing more than £7,000.

Credit cards are better suited for short term borrowing for everyday spending, as they tend to have higher interest rates than loans.

How to get cheap 12 month loans

To get a 1 year loan, you will need to:

  • Know how much you want to borrow

  • Shop around for the lowest interest rate

You should also check your credit record is accurate and up to date before you apply.

Read more about how to apply for a loan

Decide how much you need to borrow

You could borrow between £1,000 and £25,000 with a 12 month loan, but you will need to show that you can afford the monthly payments.

It's important to only borrow an amount you need, because you'll have repay the whole amount with interest.

Look for the lowest rate

The interest rate is the main factor that dictates how much your loan will cost, so when you know how much you want to borrow, shop around to find the cheapest rate.

This comparison shows the representative APR of each loan. However, the rate can vary for different loan amounts.

The representative APR includes all of the standard costs of getting a loan, so check you are getting the lowest advertised rate you can find before you apply.

Check that you can afford the loan repayments

Paying back your loan over just 12 months may keep the overall cost down but it will also make your monthly payments higher.

Use our loan repayment calculator to see how much you would have to pay back each month if you borrowed over a 12 month period.

Once you know how much the monthly payments could be draw up a budget to check if you can afford them.

If you are unsure if a 12 month loan is the right option, but want to avoid a longer term loan, you could consider a 0% money transfer credit card or overdraft instead.

Should you get a credit card, loan or overdraft?

Can you get a 12 month loan with bad credit

If you've had problems with credit before, there are lenders who may still consider offering a 12 month loan to you.

These lenders, rather than basing their decision solely on your credit score, take into account your overall financial circumstances and your affordability.

That said, if your application is accepted, it's likely that you'll pay a higher interest rate, and that you may not be able to borrow the amount you wanted.

12 month loans FAQs

About our loans comparison

Explore more loans guides

See more guides

A beginner's guide to loans

Exactly what is a loan? What can you use it for and how do you get one? Find answers to all your questions about loans here.

Read More
The word loan is spelt over four wooden blocs, with two male figurines placed next to them.

How to borrow money with bad credit

You can get a personal loan with bad credit, but the rates will likely be high. It can be harder to get a loan with bad credit, and it may be worth trying to improve your score before you apply for a loan.

Read More

How your credit record affects the loan you get

Your credit record has a big impact on the type of loan you can get and how much it will cost. Here is how your credit history affects your loan application and what you can do about it.

Read More
Keys with house

Should you borrow against your home?

Should you borrow against your house? Find out if taking out a secured loan against your home is sensible or something to avoid.

Read More

Should you get an overdraft, credit card or loan?

Choosing the right way to borrow money can make it cheaper and easier to manage. Here is when you should use a credit card, loan or overdraft.

Read More
Weighing scales with a pile of receipts on one side in the air and a piggy bank on the other weighing it down

What happens if you are unable to pay back your loan?

When you miss a payment on your loan, you'll be charged a fee. You may be issued with a County Court Judgement or have to declare yourself bankrupt if you continue to miss payments.

Read More

Why compare loans with

Comparing loans could help you save money. Our award-winning loan comparison service makes sure you get our best interest rates. Our aim is to provide you with the most up-to-date information, as well as useful tools and calculators so to help you make life's most important decisions and take control of your money.

Proud to be award winning

We have always aimed to provide the best possible services to bridge the gap between our users and our clients. Over the years, we have been thrilled to be recognised by various prestigious bodies and organisations for those efforts.