A small personal loan can help you to get hold of the things you need much sooner. You might want to treat yourself or your family without dipping into your savings. Or perhaps an unexpected expense has come up and you simply don’t have time to save.
Whatever you need your small loan for, you can use it to spread the cost of a big purchase. To give you a bit of inspiration we’re sharing just some of the ways you could use a small loan…
How can I use a small loan?
You can use a small loan for practically anything, but the most common ways to use a small loan include:
1. Fine jewellery
Get ready to buy your partner’s dream engagement ring or browse for that luxury watch to add to your collection.
With a small loan, you can have the money you need in your account ready to start shopping. This gives you the freedom to shop when you want, wherever you want. Simply take out a loan for the amount you need, and pay it back over a series of fixed-rate monthly instalments.
2. Car repairs
An expensive car repair bill can put a strain on your finances. Repairing or replacing a clutch could cost around £1,200 – money you might not be able to find to pay the bill upfront. A small loan gives you the option to spread the cost instead.
You can choose to pay your small loan back over 2 to 5 years, which gives you a longer time frame to repay the repair costs.
3. Unexpected bills or expenses
Maybe your boiler needs to be repaired, or you’re facing a higher-than-expected bill. While it’s recommended to have emergency savings to cover costs like these, you may not have quite enough to pay for the full amount.
A small loan could help you pay for what you need. Simply make your repayments each month until your loan is settled.
4. Adding the finishing touch to your home improvement project
A specialist home improvement loan might be more suitable for those big home renovation projects, but a small loan could help you buy the things you need to bring your vision to life.
You might be kitting out a new home gym, creating your very own cinema room or simply want to finish off a home renovation project with some new furnishings and accessories. With a small loan ranging from £1,000, £5,000 or even £7,500, you can transform your house into a home much sooner.
5. A celebration to remember
Throwing an anniversary party or celebrating a special milestone? A small loan could help you make the experience even more memorable. You might want to splash out on a first-class flight or arrange a caterer instead of putting on a spread yourself – however you envisage the occasion, you could borrow the money you need to make your dreams a reality.
Remember to always set yourself a strict budget and only take out a small loan for the amount you need (and can afford to pay back each month).
6. Musical instruments
Pianos or woodwind instruments for professionals can cost thousands of pounds. Don’t let the price of a brand-new instrument get in the way of you and your hobbies.
A small loan gives you access to the funds you need to buy the instrument upfront. You can then repay the loan (plus interest) each month until the loan is settled, which can be a more manageable way to pay for a big purchase.
7. Invest in yourself and your future
Whether you want to enrol on a training course or postgraduate study, a small loan could give you access to the money you need to fund educational endeavours.
One of our customers, Richard, used his personal loan to get his finances in order and enrol on a retraining course. With a whole new career on the horizon, he’s now looking forward to spending more time with his family and enjoying this exciting new chapter of his life. Read Richard’s inspiring story.
8. Reach your goals sooner
You may wish to save up for a special purchase, such as a gift, collectible item or artwork. But, if you don’t want to wait, you don’t have to.
Our small loan application takes just minutes to complete. If accepted, once you’ve signed your agreement the funds could be with you in just two working days. This means you could buy that special purchase much sooner.
All you need to do is repay your loan, plus interest, over an agreed timeframe.
Can I get a small loan?
If you meet our eligibility criteria, you’ll be able to apply for a small loan with us. You must be aged 21 or over, have a bank or building society account, be a permanent UK resident (and have been living in the UK for at least three years), have an income greater than £10,000, have a good credit history and be in permanent paid employment, self-employed or retired with a pension.
Borrow between £1,000 and £7,500 from 7.9% APR Representative (£5,000-£7,500) and make your fixed-rate monthly repayments over 2 to 5 years.
Stephanie Reid is a financial services expert with over eight years of experience writing money-saving articles at Novuna Personal Finance. She has written hundreds of articles on a variety of topics including interior design, home improvements and weddings - with a keen eye for spotting money-saving opportunities and passing these tips onto readers. As a mum of two, Stephanie knows how important budgeting effectively is for parents and often incorporates family budgeting tips into her guides.
Wednesday 26th April 2023