is a prominent direct lender in the UK that offers various types of short-term loans. Competitive interest rates are what make it stand out on the market. Having supported millions of people so far, the lender is still striving hard to evolve policies that make lending more and more convenient. Even though you have a bad credit rating, you do not need to be afraid of falling into debt.
If you are trying to figure out a loan company that offers affordable deals, British Lenders should be your option. This blog discusses full details about how the lender works and how you can benefit from it.
British Lenders

Which loans does British Lenders offer?

British Lenders provides you with various types of short-term loans that include small business loans, loans for unemployed, bad credit loans, 12 month loans, no credit check loans, guaranteed loans and quick loans. The duration of each type of loan is not more than three years. However, the repayment length of some loans is not more than a month.
  • One month repayment period – loans for unemployed, no credit check loans, guaranteed loans and quick loans
  • 12-month repayment period – 12 month loans, bad credit loans
  • 36-month repayment period – bad credit loans, business loans
Note that loans with one-month repayment period are likely to be paid off in weekly or bi-weekly instalments. If you choose a loan for three or more months, you will pay down the principal as well as the interest. 

This amortisation feature will help you manage your debt easily. Unlike British Lenders, other mainstream lenders do not allow you to choose this facility. Your each instalment goes toward the interest and at the end of the term you pay off the whole of the money you borrowed. 

The disbursal approach of British Lenders is different from other mainstream lenders

Many lenders follow online loan applications and advertise the disbursal within two minutes, but this is a white lie. A loan disbursal needs to be as quick as during financial emergency, yet disbursal in two minutes is not possible. British Lenders transfers money to your account the same day when you put in the loan application. 

First off, you need to submit your personal and financial information. After the approval, you will be asked to submit your income statement to determine your affordability. Most of the lenders run a credit check and approve the loan without going through your income statement. It is likely that you borrow more than your affordability. 

British Lenders makes all possible efforts to ensure that you do not borrow more than your needs and repayment capacity. This sis why it is different from other lenders. 

How much money can you borrow?

The minimum borrowing amount is £1,000 for all short-term loans, but the maximum limit varies from loan to loan. The maximum disbursal limit for bad credit loans and small business loans can go up to £5,000 while one-month loans do not allow you to borrow more than £2,500. If you are an existing customer, the lender will likely allow you to borrow more, but it depends on your credit score. 

Interest rates and penalties are explained here

British Lenders has served millions of borrowers so far. Compared to other lenders, the lender offers deals at very affordable interest rates and APRs. Considering FCA guidelines, the maximum rate of a short-term loan is up to 0.8%. 

Late payment fees – Mainstream lenders charge 15% as late payment fees for each default. It quickly adds up your debt making you vulnerable to a debt spiral, but British Lenders charges half this rate after two consecutive defaults. The lender will not charge any late payment fees if you have a genuine reason to miss the repayment, for instance, you had medical emergency. 

Prepayment penalties – Unlike mainstream lenders, British Lenders does not charge any prepayment penalty. If you want to pay off the debt before the due date, you are most welcome. 

Credit check policy that British Lenders follows

Alongside the assessment of your loan application, British Lenders will go through your credit report. It runs a soft credit check so that your score does not go down. Soft credit check also works as a hard credit check. Even if your credit rating is less-than-perfect, you can get a loan approved on basis of your income statement.  

The final word

British Lenders has attained prominence because of its transparent policy acting in favour of borrowers. Competitive APRs and early payment make loan deals manageable.  

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