Instalment Loans.

Instalment loans: spread the cost with manageable repayments

If you need to borrow money but don’t want the pressure of repaying everything in one go, instalment loans let you spread the cost over regular, predictable payments. Whether you need £500 for an unexpected bill or up to £5,000 for something bigger, repaying in fixed monthly instalments makes budgeting simpler.

New Horizons searches over 50 FCA-authorised lenders to help find instalment loans matched to your circumstances, with no fees and no impact on your credit score.

Many people prefer instalment loans because they know exactly what they’ll pay each month. There are no surprises, no lump-sum repayment dates, and no hidden costs. You choose a repayment term that works for your budget, from 3 to 36 months, and your lender collects the same fixed amount each time.

Our bad credit loans service means past credit problems won’t automatically rule you out, either. We work with specialist lenders who assess your current situation, not just your credit history.

How instalment loans work at New Horizons

Applying for an instalment loan through New Horizons is straightforward. As a credit broker, we do the searching so you don’t have to visit dozens of lender websites individually.

Here’s how the process works:

1. Complete our short online form with your personal and financial details
2. We run a Soft Credit Match across our panel of over 50 FCA-authorised lenders
3. If matched, you see your loan options in minutes, with no impact on your credit score
4. Choose the offer that works for you, or walk away with no obligation
5. If you accept an offer, the lender completes a full affordability check
6. If approved, funds can be in your account within 15 minutes*

Your initial eligibility check uses a soft search that’s invisible to other lenders. Only you can see it on your credit report. If you decide to accept a loan offer, the lender will then carry out a full credit check.

The whole process takes minutes, and because we compare multiple lenders at once, you’re more likely to find a competitive rate than approaching a single short-term loan provider directly.

What you need to know

Why use us?

How much can new customers borrow?

Up to £5,000

No fees, ever!

What are the repayment terms?

3 to 36 Months

No paperwork

Representative APR

49.9% (variable)

No obligation quote

Can I apply with bad credit?

Yes

Instant decision

Can I repay in instalments

Yes

Flexible repayment

Do lenders credit check?

Yes

We only soft-search

What are instalment loans?

An instalment loan is any loan you repay through a series of scheduled payments over a set period. Each payment covers a portion of the amount you borrowed plus interest, and the payments stay the same throughout the term.

This is different from payday-style loans, which typically require you to repay everything, including interest, in a single payment on your next payday. Instalment loans give you more breathing room by splitting the total cost into smaller, more manageable chunks.

With New Horizons, you can borrow from £50 to £5,000 and repay over 3 to 36 months. That flexibility means you can choose a term that keeps your monthly repayments comfortable.

Common reasons people take out instalment loans include:

• Unexpected car repairs or MOT costs
• Emergency home repairs like a broken boiler
• Medical or dental bills
• Consolidating smaller debts into one payment
• Covering essential costs between paydays

The key advantage is predictability. You agree the repayment amount upfront, so there are no surprises during the loan term. If you’re looking for quick loans with structured repayments rather than a single lump sum, instalment loans are worth considering.

Different Types of Instalment Loans

Instalment loans for bad credit

Past credit problems don’t define your future. If you’ve experienced defaults, CCJs, missed payments, or other credit difficulties, you may still be eligible for an instalment loan through our panel of lenders.

We work with lenders who look at your current income and affordability, not just your credit score. This means your whole financial picture is considered when assessing your application.

Many direct lenders only offer instalment loans for bad credit at very high interest rates, sometimes exceeding 1,000% APR. Because New Horizons searches over 50 lenders simultaneously, you’re more likely to find a competitive offer suited to your situation. Our representative APR is 49.9%, which is significantly lower than many specialist bad credit lenders.

If you’ve been refused a loan elsewhere, it’s worth checking your eligibility with us. Different lenders have different criteria, and our broad panel increases your chances of finding a match.

Eligibility requirements for instalment loans

To check your eligibility for an instalment loan through New Horizons, you’ll need to meet some basic requirements:

• Be at least 18 years old
• Be a UK resident
• Have a regular source of income
• Have a UK bank account
• Provide accurate personal information

Unlike some direct lenders who require you to be aged 25 or over, our panel includes lenders who accept applications from age 18.

Individual lenders will have their own specific criteria beyond these basics. Some may require a minimum income level or specific employment status, while others are more flexible. Because our Soft Credit Match searches across a wide panel, your application is assessed against multiple sets of criteria rather than just one.

You don’t need a perfect credit score to apply. Lenders on our panel consider applicants across the credit spectrum, including those with no guarantor available.

Understanding the costs of instalment loans

Borrowing money always comes with costs, and it’s important to understand exactly what you’ll pay before accepting any loan offer. New Horizons is committed to full transparency on pricing.

Our representative APR is 49.9%. The rate you’re offered will depend on your individual circumstances, with rates ranging from 9.3% APR to a maximum of 1,721% APR.

Here’s what that looks like in practice:

Representative example: Amount of credit: £1,200 for 18 months at £95.44 per month. Total amount repayable: £1,717.83. Interest: £517.83. Interest rate: 49% pa (fixed). Representative 49.9% APR.

APR stands for Annual Percentage Rate, and it shows the total cost of borrowing as a yearly percentage. The representative APR is the rate that at least 51% of successful applicants receive. Your actual rate will depend on factors like the amount you borrow, your repayment term, and your credit profile.

To put this in context, some direct lenders of instalment loans charge representative APRs above 1,000%. New Horizons does not charge customers any fees for using our service. We’re paid by lenders, never by you.

Always compare the total amount repayable, not just the monthly payment or APR figure. A lower monthly payment over a longer term could mean you pay more in total interest.

Why choose New Horizons for your instalment loan

The short-term lending industry has a troubled history. Fee-charging brokers, data selling, and aggressive sales tactics have left many borrowers understandably cautious. New Horizons was established in 2017 specifically to do things differently.

We never sell your data. We never contact you to sell other products. We never give consent to other companies to contact you. That’s our Customer Promise, and it’s central to how we operate.

Here’s what sets us apart from other instalment loan providers:

• Access to over 50 FCA-authorised lenders in a single search
• Soft Credit Match technology that won’t affect your credit score
• No fees from New Horizons, ever
• Loans from £50 to £5,000 with 3 to 36 month terms
• Feefo Gold Trusted Service rating from verified customer reviews
• 24/7 online availability

Because we’re a broker searching multiple lenders, you get a broader view of what’s available rather than being limited to a single lender’s products. New Horizons processes over 7,510 loan applications every day, connecting people with lenders who can genuinely help.

New Horizons is a credit broker, not a lender. New Horizons Finance Ltd (Company No. 11757330, FCA reference: 834535) is an Appointed Representative of Flux Funding Limited (FRN 806333), which is authorised and regulated by the Financial Conduct Authority.

Alternatives to instalment loans

Borrowing isn’t always the right answer. Before taking on any new debt, it’s worth considering whether other options might work for your situation.

• Credit unions often offer lower-rate loans to members, even those with limited credit histories
• Payment plans with your creditor may let you spread an existing bill without taking on new borrowing
• Friends or family could help with a short-term, interest-free arrangement
• Employer salary advances are offered by some workplaces for emergencies
• Government support through Universal Credit advances or budgeting loans may be available

If you’re struggling with existing debts, taking on more borrowing could make things worse. Free, impartial debt advice is available from MoneyHelper, StepChange, Citizens Advice, and National Debtline.

If you do decide that an instalment loan is the right option, checking your eligibility through New Horizons lets you compare offers from over 50 lenders without any commitment. You’re under no obligation to accept any offer you receive.

How to manage your instalment loan repayments

Taking out a loan is only half the picture. Managing your repayments effectively is just as important for your financial wellbeing and your credit score.

Set up a direct debit for your repayments so you never miss a payment date. Most lenders will arrange this as part of the loan agreement. Missing payments can result in late fees ranging from £1 to £100 depending on the lender, plus negative marks on your credit file.

If you’re struggling to make a repayment, contact your lender immediately. They may be able to offer a temporary payment plan or adjusted schedule. Ignoring the problem can lead to collections activity and further damage to your credit record.

On a positive note, making all your repayments on time and in full is reported to credit reference agencies. This can actually help improve your credit score over time, opening up better borrowing options in the future.

Warning: Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk.

Instalment loans vs payday loans

If you’re comparing borrowing options, it helps to understand the key differences between instalment loans and traditional payday loans.

Payday loans are typically repaid in a single payment on your next payday. This can work for very small amounts, but the short repayment window puts pressure on your next month’s budget. If you can’t repay in full, fees and interest can escalate quickly.

Instalment loans spread the cost over multiple months, making each individual payment smaller and more affordable. This structure reduces the risk of missed payments and gives you more time to manage your finances.

With New Horizons, you can choose repayment terms from 3 to 36 months. Whether you need a £100 loan over a few months or a £5,000 loan over a longer period, the flexibility is there to match your budget.

If you’re exploring faster funding options alongside instalment repayments, our same day loans page explains how quickly approved funds can reach your account.

Frequently asked questions about instalment loans

What is an instalment loan?

An instalment loan is a loan you repay through regular, fixed payments over a set period. Each payment includes a portion of the original amount borrowed plus interest. Unlike payday loans that require full repayment on your next payday, instalment loans let you spread the cost over weeks or months.

Can I get an instalment loan with bad credit?

Yes, you can apply for instalment loans for bad credit through New Horizons. We work with lenders who assess your current income and affordability alongside your credit history. Past defaults, CCJs, or missed payments won’t automatically disqualify you. Our Soft Credit Match searches over 50 lenders to find options suited to your circumstances.

How much can I borrow with an instalment loan?

Through New Horizons, you could borrow from £50 to £5,000. The amount you’re offered depends on your individual circumstances, including your income and existing financial commitments. Many direct lenders cap their instalment loans at much lower amounts, sometimes just £1,000 or £1,500.

What repayment terms are available?

You could repay over 3 to 36 months. Shorter terms mean less total interest but higher monthly payments. Longer terms reduce your monthly outgoing but increase the overall cost. Choose the term that fits comfortably within your budget.

Will applying for an instalment loan affect my credit score?

No. Your initial eligibility check with New Horizons uses a soft search that won’t affect your credit score. Only you can see this on your credit report. A full credit check only happens if you choose to accept a loan offer from a specific lender.

How quickly can I receive the money?

Once approved by a lender, funds could be sent within 15 minutes. The time it takes for the money to appear in your account depends on your bank’s processing times. Our service is available 24 hours a day, 7 days a week.

Are there any fees for using New Horizons?

New Horizons does not charge customers any fees for using our service. We’re a credit broker paid by lenders through commission. There are no upfront fees, no application fees, and no hidden charges from us.

What’s the difference between a broker and a direct lender?

A direct lender provides loans from their own funds, so you’re limited to their specific products and rates. A broker like New Horizons searches multiple lenders on your behalf, giving you access to a wider range of options in a single application. This increases your chances of finding a competitive rate.

Can I repay my instalment loan early?

Most lenders allow early repayment, and you may pay less interest overall if you do. Check the specific terms of your loan agreement, as policies vary between lenders. Some may charge a small settlement fee, while others allow penalty-free early repayment.

What happens if I miss a repayment?

Contact your lender immediately if you think you’ll miss a payment. Late fees can range from £1 to £100 depending on the lender, and missed payments are reported to credit reference agencies. Your lender may be able to arrange an alternative repayment plan if you reach out early.

Do I need a guarantor for an instalment loan?

No, you don’t need a guarantor to apply through New Horizons. Our panel includes lenders who offer no guarantor loans, so you can apply independently without involving anyone else.

Can I get an instalment loan if I’m on benefits?

Some lenders on our panel do consider applicants who receive benefits as part of their income. Eligibility depends on your overall financial situation and the specific lender’s criteria. Visit our loans for people on benefits page for more detail on how this works.

How is the interest rate on my instalment loan determined?

Your interest rate depends on factors including the amount you borrow, your repayment term, your credit profile, and the individual lender’s criteria. Our representative APR is 49.9%, with rates ranging from 9.3% to a maximum of 1,721% APR. You’ll see your exact rate before you accept any offer.

Is New Horizons a lender?

No. New Horizons is a credit broker, not a lender. We search over 50 FCA-authorised lenders to find you the best match. We never lend money directly. New Horizons Finance Ltd is an Appointed Representative of Flux Funding Limited, which is authorised and regulated by the Financial Conduct Authority.