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12 Month Loans

A 12 month loan can offer a manageable way to spread the cost of borrowing over a full year. Whether you’re dealing with an unexpected expense or looking to fund a planned purchase, a one-year loan allows you to repay in monthly instalments rather than all at once.

Representative 79.9% APR Rates from 12.9% APR to 1721% APR. Representative 79.9%. The minimum Loan Term is 1 month. The maximum Loan Term is 36 months. Representative Example: £1,000 borrowed for 18 months. Repayment of 17 Months at £87.22 and final repayment of £87.70 The total amount repayable is £1570.44. Interest amounts to £570.44, an annual interest rate of 59.97%.

At Sinch.co.uk, we are a credit broker, not a lender. We connect users with a panel of FCA-authorised lenders who offer a range of short to mid-term loans. If you’re thinking about borrowing money over 12 months, this guide will help you understand how it works and whether it’s the right fit for your situation.

What Is a 12 Month Loan?

A 12 month loan is a type of personal loan that is repaid in monthly instalments over the course of a year. It’s typically unsecured, meaning you don’t need to offer an asset (like a car or house) as collateral.

Loan amounts vary depending on the lender and your personal financial circumstances. Some lenders offer as little as £500, while others may offer up to £5,000 or more to be repaid over 12 months.

This type of loan is designed to provide flexible borrowing for those who want to spread their repayments over a longer period without committing to a multi-year agreement.

What Are 12 Month Loans Used For?

People use 12 month loans for a wide range of purposes, including:

  • Covering emergency expenses (car repairs, home maintenance)
  • Paying off high-interest short-term loans or consolidating debts
  • Financing essential purchases such as furniture or household appliances
  • Managing temporary cash flow issues
  • Funding one-off costs such as dental or veterinary care

It’s important to borrow only what you need, and only if you’re confident you can repay the loan on time.

How Do Repayments Work?

Repayments are typically made in 12 fixed monthly instalments, which makes budgeting easier as you’ll know exactly how much is due each month.

Each repayment will include a portion of the loan amount plus interest. The total amount repayable will depend on:

  • The interest rate
  • Any applicable fees
  • Your credit profile and lender’s terms

For example, borrowing £1,200 over 12 months at a representative APR of 49.9% might result in monthly repayments of around £135, depending on the lender.

Can You Get a 12 Month Loan with Bad Credit?

Some lenders specialise in providing loans to people with poor or limited credit histories. If your credit score is low due to past issues—such as missed payments or defaults—you may still be eligible for a 12 month loan, provided the repayments are affordable for you.

However, all FCA-authorised lenders must carry out creditworthiness and affordability checks before approving any loan. These checks are in place to ensure the loan doesn’t place you under financial pressure.

At Sinch.co.uk, we only work with lenders who follow these rules and assess applications fairly.

What to Consider Before Applying

Before applying for a 12 month loan, ask yourself:

  • Do I really need to borrow this money?
  • Is 12 months the right term for me—or could a shorter or longer term be better?
  • Can I comfortably afford the monthly repayments?
  • Have I compared multiple lenders to find the best rates and terms?

Taking on credit should always be a considered decision. Borrowing responsibly helps protect your credit score and financial wellbeing.

Alternatives to 12 Month Loans

Depending on your needs, other options may be more appropriate:

  • Credit unions – Often offer affordable short- to mid-term loans
  • Buy now, pay later services – Can help with planned purchases if used responsibly
  • Overdrafts – Suitable for very short-term borrowing if already arranged
  • 0% interest credit cards – May be useful for specific purchases, if paid off in time
  • Budgeting loans or advances – Available to those receiving qualifying benefits

Our Role at Sinch.co.uk

We act as a credit broker, not a direct lender. Our job is to help you compare loan options from FCA-authorised lenders who offer clear terms, fair interest rates, and responsible lending practices.

We do not charge you for using our service, and we never promote unregulated or high-risk credit providers.

Final Thoughts

A 12 month loan offers a balance between short-term borrowing and longer repayment flexibility. If used wisely, it can help you cover important expenses without placing too much strain on your monthly budget.

At Sinch.co.uk, we help you access responsible borrowing options so you can make decisions with confidence and clarity.