A 2 year loan is one that you repay over a 2 year period. You can borrow anywhere between £1,000 to £25,000 with a 2 year loan, but be sure that you can afford the repayments.
What can you use a 2 year loan for?
A 2 year loan can be used to anything that you need. But given that the repayment term is fairly long, 24 month loans are best used for planned expenses. These could be buying a new car, making home improvements, or going on a holiday.
How to get a cheap 24 month loan
Since you know how long you need to pay back what you want to borrow, follow these three steps to find the right loan:
Decide how much you need to borrow: There are plenty of two year loans for between £1,000 and £25,000. If you need to borrow more, it may be possible but choice is limited. Try to borrow no more than you need to as it costs more in interest.
Look for the lowest interest rate: This is the main cost of your loan. You can use this comparison to compare interest rates for two year loans.
You can use our loan repayment calculator to get a quick estimate of how much your monthly payments could be.
Is 24 months still the right term for you?
Once you know how much the monthly payments could be it is worth double checking if a two year loan is still the best choice:
- a longer term loan, although you will normally pay more overall.
If you find that the monthly payments are smaller than expected you could save money by choosing a shorter loan term, just make sure you can still afford the payments each month.
For example, if you borrow £2,000 with an APR of 5% over 2 years the monthly payments would be £87.64. Change the term to 3 years and they drop to £59.84.
Can you get a 2 year loan with bad credit
Yes, it is possible to get 24 month loans with bad credit. Many lenders will look at more than just your credit history to judge your eligibility for a loan. However, it's likely that you'll be offered a higher interest rate as you'll be considered a higher risk borrower.