2014 Lender Lists:
Compare 3-6 Month Payday Loans | 3-6 Month Lenders List 2014
We have listed 27 companies below that currently offer instalment loans. There has been just 2 closures, but one of these was in fact primarily a monthly lender anyway (Cash Window).
There isn’t any single market leading instalment loan provider in the UK with much of the business being shared out between several high profile companies. The Lending Stream was the early trendsetter in this niche. They launched in the year 2008 and they offer 6 month payday loans. They were the team behind Zebit that has now closed down. A range of companies have stepped in to their field, but we also seen 3 month payday loans becoming increasingly popular. Wizz Cash has been one of the emerging brands, with their growth being supported by their notable search engine rankings (they now also offer their product over the complete year). Provident’s Satsuma Loans has been progressing well with their service covering both 3 and 6 months, but existing customers can stretch up to a year.
Market Leader Competitors:
Cash America International now competes through QuickQuid FlexCredit that has 10 months, but you can clear at any time. The standard QuickQuid product can also be taken on a 3 monthly tier. Their sister-brand Pounds to Pocket now also has smaller instalment terms. DFC Global’s Ladder Loans is performing well and Oakam offers excellent pricing. The short term brands Peachy and Sunny offer their flexible products up to 5 months and so they have also been muscling in on this new territory. They are each supported by impressive search engine rankings and TV ad exposure. Also of note are the Ancora brands that are notable on pricing through VarioLoans and WagedayXpress and another name to watch out for is Kabayan Finance. As you can see, there are some big names competing that are each grabbing a piece of the action and so I don’t think that anyone can hold claim to any sector dominance at this time.
Pricing (Compare 3 Month Payday Loans and 6 Month Payday Loans):
The top rates have been explored further for both of these sectors (see A and B). From this data, we have added the current top 5 rankings below whereby you will see that some names do crop on each occasion. The instalment loan prices across the market are competitive. Most companies calculate the pricing so that the interest is cutting against a reducing balance that creates a much better deal than the traditional rollover lending model with Payday Loans whereby you are paying a new fixed charge per pay period. The FCA cap won’t effect the top companies in these sectors for the simple reason that the rates are much lower than 0.8% daily. Here are the current top prices using the example of a £300 borrowed sum.
1) Oakam = £85
2) WagedayXpress = £102.38 (84 day term)
3) Kabayan Finance = £109.94
4) VarioLoans = £118.64
5) Satsuma Loans = £120.03
1) Ladder Loans = £140.55
2) Oakam = £150
3) Kabayan Finance = £154.94
4) Quick Cash Club = £155.82
5) Pounds to Pocket = £191.14
Primary Product Benefits:
The extended repayments create more manageable loans so that you don’t have to pay back chunky excessive single payments as you do with shorter term products. Although much longer periods are provided, the lenders don’t tend to offer significantly higher sums of cash that helps to maintain the affordability. This should essentially make the default rates much lower. The competitive pricing also deserves a mention here since you are paying more competitive rates, especially the longer that you borrow for. We are referring to the top names here, since not everyone measures up well on pricing.
Primary Product Limitations:
Whilst the terms take customers on manageable payment structures you have to remember that the lender is constantly generating a profit from the user by keeping them on an agreement. I would imagine that some people would pay off their balance only to enter into a new agreement soon after this. If someone is continually borrowing like this then the value does begin to dissipate. Long term borrowing is generally better suited for Planned Overdrafts. However, not everyone will qualify with the big banks. One other point with these products is that not everyone that we studied offers account servicing. This means that whilst early settlements may be promised for discounts, you would have to pick up a phone to do this with some of them.
A UK resident aged at 18 and in full time employment should be fine. The minimum thresholds for your pay income tends to vary across companies. One thing noticed with these services is that the lender tends to contact employers for verification or they may make direct contact with you. Bad credit is considered, but it does look like you are less likely to qualify with these companies than you are with payday products. My guess would be that some of them aren’t too sophisticated when it comes to credit checking that is why many of them are contacting employers. In some cases, higher cash sums are also promoted that is another reason why they may be more picky here.
3-6 Month Lenders List 2014:
In past listings we have grouped firms by popularity, but below we chosen to break them down by the maximum terms offered. Each lender is alphabetically placed within each of these groups. To be included, every single company must offer either a 3 or 6 month loan. It may be the case that you would have to clear the balance early to do this with them. We have setup the monthly groups as follows: Group A = (3 max), Group B (4 max), Group C (5 max), Group D (6 max) and Group E = (higher than 6). We have also marked the ~ Closed ~ section below this. If we have marked anyone with a star* then supporting notes will be found for them at the bottom of the page.
Group A (>3):
Group B (>4):
Group C (>5):
Group D (>6):
Group E (6+):
~ Closed ~
*Oakam Bonus has been covered above. They also have a Big Plus product that can be phoned through. This includes terms much higher than a year.
*Satsuma Loans now offers existing customers extended terms up to a year.
This page is frequently updated.