You will need to:

  1. Know how much you want to borrow

  2. Shop around for the lowest interest rate

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

Decide how much you need

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.

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 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.

12 month loans FAQs


Can I get a loan for less than 1 year?


12 months is the shortest term most mainstream lenders offer with their personal loans, but a few do offer 6 month loans.


Can I pay back the loan early?


Yes, and it could save you money in interest. Some 12 month loans let you pay back early with no fees, but others charge so check before you apply.


How long does it take to apply online?


Applying online can take minutes if you have your details ready.


Can I get a loan if I have bad credit?


Some lenders do offer 12 month loans for bad credit but your options may be limited. Here is how to borrow if you have bad credit.

About our loans comparison


Who do we include in this comparison?


We include every unsecured loan you can get in the UK and peer to peer loans from our panel. They are all from lenders regulated by the Financial Conduct Authority. Here is more information about how our website works.


How do we make money from our comparison?


We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.
You do not pay any extra and the deal you get is not affected.