The Best Payday Loans in the UK: Where to Get Them in 2025?! (Updated)

Apr 7, 2025

In 2025, financial emergencies remain an unavoidable part of life. Whether it’s a sudden car repair, an unexpected bill, or a gap between paychecks, payday loans and short-term lending solutions continue to serve as a lifeline for many in the UK. However, with high interest rates, strict repayment terms, and a variety of providers, choosing the right option can feel overwhelming. This article dives into the best payday loans and short-term loan alternatives available in the UK as of April 06, 2025, exploring their features, costs, and suitability to help you make an informed decision.

Payday loans are short-term, unsecured loans designed to tide you over until your next paycheck. Typically ranging from £50 to £5,000, they often come with high annual percentage rates (APRs) but offer quick access to cash—sometimes within minutes. Regulated by the Financial Conduct Authority (FCA), the UK payday loan market has evolved since the 2015 interest cap of 0.8% per day, ensuring borrowers don’t repay more than double what they borrow. Yet, the warning remains universal: Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk.

Let’s explore the top providers, their offerings, and what you need to know before borrowing in 2025.

Top Payday Loan Providers in the UK for 2025

Based on the data provided, here’s a breakdown of some of the most prominent payday loan and short-term loan providers in the UK, including brokers and direct lenders. Each offers unique features tailored to different needs, from instant funding to flexible repayment terms.

1. Lolly.co.uk – Best for Flexible Instalment Loans

  • Overview: Lolly.co.uk is a credit broker, not a lender, connecting borrowers to a panel of lenders via T Dot UK Limited. Operating since 2005, it boasts over 500,000 customers and a 92% approval rate.
  • Loan Details: Offers £50–£2,750 over 3 to 24 months. Cash can be paid within 60 minutes of approval, with an instant online decision.
  • Representative Example: £1,000 borrowed for 18 months; 17 monthly repayments of £87.22, final repayment of £87.70. Total repayable: £1,570.44. Interest: £570.44. APR: 79.5% (variable). Rates range from 12.9% to 1721% APR.
  • Pros: No hidden fees, no paperwork, instalment options, and good/bad credit accepted. Over 350 five-star reviews highlight excellent customer service.
  • Cons: As a broker, terms depend on the lender matched, and the maximum APR of 1721% can be steep for some borrowers.
  • Best For: Those seeking flexible repayment terms over traditional one-month payday loans.

2. Payday UK – Best for High Approval Rates

  • Overview: A broker service under Payday Loans Ltd, partnered with Flux Funding Limited, Payday UK processes over 7,500 loan quotes daily and helps over 4,000 people per day.
  • Loan Details: Loans from £50 to £5,000 over 3 to 36 months. Funds can be available same-day with a soft credit check initially.
  • Representative Example: £500 for 6 months at £106.79/month. Total repayable: £640.77. Interest: £140.77. Representative APR: 91%. Rates range from 9.3% to 1721% APR.
  • Pros: High approval rates, no fees, tailored loans, and a free eligibility checker that doesn’t affect your credit score.
  • Cons: Not a direct lender, so terms vary by lender. Hard credit checks apply if you accept an offer.
  • Best For: Borrowers needing quick access to larger amounts with minimal upfront hassle.

3. All Day Loans – Best for Speed

  • Overview: A broker service by UK Leadtech Limited, All Day Loans emphasizes speed, offering loans from £100 to £2,500 in as little as 10 minutes.
  • Loan Details: Repayment terms from 3 to 60 months. APRs range from 45.3% to 1575%.
  • Representative Example: £1,000 for 24 months at £77.48/month. Total repayable: £1,859.52. Interest: £859.52. Representative APR: 97%.
  • Pros: No fees, 100% online, 24-hour lending, and over 200 loans found daily.
  • Cons: Longer maximum terms (60 months) may increase total interest costs. Not a direct lender.
  • Best For: Those needing cash urgently with some repayment flexibility.

4. Lending Stream – Best Direct Lender Alternative

  • Overview: An FCA-authorised direct lender since 2008, Lending Stream offers short-term loans as an alternative to traditional payday loans, serving over 500,000 customers.
  • Loan Details: £50–£800 for new customers, £100–£1,500 for returning customers, repayable over 6 months. Funds sent within 90 seconds if approved.
  • Representative Example: £300 over 6 months at £96.39/month. Total repayable: £578.36. Interest: £278.36. Representative APR: 1271%.
  • Pros: No early repayment fees, fast funding, transparent terms, and bad credit considered.
  • Cons: High APR (up to 1625%) and limited to 6-month terms.
  • Best For: Borrowers wanting a direct lender with quick payouts and no broker involvement.

5. QuidMarket – Best for Bad Credit

  • Overview: A direct lender since 2011, QuidMarket takes a human approach to lending, manually reviewing applications rather than relying on automation.
  • Loan Details: £300–£600 for new customers, up to £1,500 for returning customers, repayable over 3–6 months.
  • Representative Example: £300 for 3 months at £151.46/month. Total repayable: £454.38. Interest: £154.38. Representative APR: 1301.8%.
  • Pros: Bad credit considered, no hidden fees, same-day funding, and flexible terms.
  • Cons: Smaller loan amounts and high APRs (up to 1612%).
  • Best For: Individuals with poor credit needing a personalized lending experience.

6. Fund Ourselves – Best Low-Cost Alternative

  • Overview: A direct lender offering peer-to-peer funded loans, Fund Ourselves provides a cheaper alternative to traditional payday loans.
  • Loan Details: £100–£1,500 over 4–6 months. No upfront or late fees, with free early repayment.
  • Representative Example: £300 for 106 days (approx. 3.5 months) at £113.24/month. Total repayable: £452.97. Interest: £152.97. Representative APR: 1310.4%.
  • Pros: Lower rates than many competitors, flexible repayments, and no penalties for early payoff.
  • Cons: Smaller loan range and high APRs compared to personal loans.
  • Best For: Cost-conscious borrowers seeking an ethical alternative.

7. CashASAP.co.uk – Best for Small, Quick Loans

  • Overview: A direct lender offering payday and multi-month loans, CashASAP.co.uk focuses on simplicity and speed.
  • Loan Details: £200–£400 for new customers, up to £750 for returning customers, over 1–35 days (payday) or 3–6 months (instalment).
  • Representative Example: £200 for 6 months at variable instalments (e.g., £65.11 to £41.56). Total repayable: £355.99. Representative APR: 1266.2%.
  • Pros: No hidden costs, same-day transfers, and flexible loan types.
  • Cons: Limited amounts for new customers and high APRs.
  • Best For: Small, urgent loans with short or medium-term repayment options.

8. Salad Money – Best for Key Workers

  • Overview: A unique lender targeting key workers, Salad Money uses Open Banking for affordability checks rather than credit scores.
  • Loan Details: Up to £1,200 over 18 months. Funds within 4 hours if approved.
  • Representative Example: £1,200 over 18 months at £106.42/month. Total repayable: £1,915.56. Interest: £715.56. Representative APR: 79.5%.
  • Pros: Lower APR, tailored for key workers, and quick payout.
  • Cons: Restricted to 18-month terms and specific eligibility (employment-based).
  • Best For: Key workers with steady income seeking affordable rates.

9. WageDayAdvance – Best for Larger Loans

  • Overview: A broker service since 2021 (under new ownership), WageDayAdvance connects borrowers to lenders offering up to £5,000.
  • Loan Details: £100–£5,000 over 1–36 months. Same-day funding available.
  • Representative Example: £1,000 for 18 months at £87.22/month (17 payments), £87.70 final payment. Total repayable: £1,570.44. Representative APR: 79.5%.
  • Pros: High loan ceiling, bad credit accepted, and instant decisions.
  • Cons: Broker service means variable terms and potential commissions.
  • Best For: Borrowers needing larger sums with longer repayment periods.

10. Dot Dot Loans – Best for Loan Matching

  • Overview: A broker service by PJG Financial Limited, Dot Dot Loans matches applicants to lenders using a soft-search form.
  • Loan Details: £100–£5,000 over 1–36 months. Same-day funding possible.
  • Representative Example: £1,000 for 18 months at £87.22/month (17 payments), £87.70 final payment. Total repayable: £1,570.44. Representative APR: 79.9%.
  • Pros: Soft searches, wide lender panel, and flexible options.
  • Cons: Not a direct lender, and terms vary by match.
  • Best For: Those wanting to compare options without credit impact.

Key Considerations When Choosing a Payday Loan in 2025

1. Cost of Borrowing

Payday loans are notoriously expensive, with APRs ranging from 12.9% (Lolly.co.uk) to 1721% (Payday UK). However, the FCA caps interest at 0.8% per day, meaning a £100 loan for 30 days can’t cost more than £24 in interest and fees. Compare representative examples to understand total repayable amounts.

2. Speed of Funding

Most providers offer same-day or near-instant funding:

  • Fastest: Lending Stream (90 seconds), All Day Loans (10 minutes).
  • Standard: Lolly.co.uk (60 minutes), Payday UK (same day).

3. Repayment Flexibility

Traditional payday loans require full repayment by your next payday, but many 2025 options offer instalments:

  • Shortest: CashASAP.co.uk (1–35 days).
  • Longest: All Day Loans (up to 60 months).

4. Credit Requirements

Bad credit is widely accepted, with providers like QuidMarket and Lending Stream focusing on affordability rather than credit scores. Salad Money’s Open Banking approach is ideal for those with poor credit histories.

5. Direct Lender vs. Broker

  • Direct Lenders (e.g., Lending Stream, QuidMarket): No middleman, potentially faster.
  • Brokers (e.g., Payday UK, Lolly.co.uk): Wider lender access but variable terms and possible commissions.

Alternatives to Payday Loans in 2025

If payday loans feel too costly or risky, consider these options:

  1. Credit Unions: Lower rates (capped at 42.6% APR) and community-focused.
  2. Overdrafts: Bank overdrafts often have lower rates than payday APRs.
  3. Personal Loans: For larger amounts over longer terms, with APRs as low as 5–10%.
  4. Friends/Family: Interest-free, but requires clear agreements.
  5. Local Authority Help: Emergency funds for low-income households.

Tips for Responsible Borrowing

  • Borrow Only What You Need: Avoid over-borrowing to minimize interest.
  • Check FCA Authorization: Ensure your lender or broker is on the Financial Services Register.
  • Read Terms: Understand fees, late payment penalties, and repayment schedules.
  • Plan Repayment: Ensure your budget can handle instalments or lump-sum repayment.
  • Seek Help: If struggling, contact MoneyHelper or debt charities like StepChange.

GDPR and Payday Loans in 2025

The General Data Protection Regulation (GDPR), enforced across the UK and EU since 2018, continues to play a critical role in how payday loan providers handle borrower data in 2025. Even post-Brexit, the UK adheres to GDPR principles under the Data Protection Act 2018, ensuring strict standards for data privacy and security. When applying for a payday loan, lenders and brokers—such as Lolly.co.uk, Payday UK, or Lending Stream—collect personal information like your name, address, income details, and bank account data. Under GDPR, they must:

  • Obtain Consent: Clearly explain how your data will be used (e.g., credit checks, loan processing, or marketing) and obtain your explicit consent before proceeding.
  • Ensure Transparency: Provide privacy policies detailing data retention periods and your rights, such as the right to access, correct, or delete your data.
  • Secure Data: Use encryption and other safeguards to protect your information from breaches, a growing concern with online lending platforms.
  • Limit Sharing: Only share your data with third parties (e.g., credit reference agencies or partner lenders) if explicitly permitted, as with brokers like WageDayAdvance or Dot Dot Loans.

Innovations like Open Banking, used by providers such as Salad Money, align with GDPR by giving borrowers more control over their financial data while enabling lenders to assess affordability securely. However, borrowers should be cautious: always check a provider’s GDPR compliance on their website and avoid those lacking clear privacy policies. If you suspect misuse of your data, you can complain to the Information Commissioner’s Office (ICO) at ico.org.uk. In 2025, GDPR ensures that while payday loans offer quick cash, your personal information remains protected—adding a layer of trust to an often-criticized industry.

Conclusion: Where Should You Borrow in 2025?

The best payday loan or short-term loan in 2025 depends on your needs:

  • Urgency: All Day Loans or Lending Stream for speed.
  • Flexibility: Lolly.co.uk or WageDayAdvance for instalment options.
  • Bad Credit: QuidMarket or Fund Ourselves for affordability-focused lending.
  • Low Cost: Salad Money or Fund Ourselves for lower APRs.

Before applying, weigh the costs against your ability to repay. Payday loans remain a quick fix, not a long-term solution. For personalized advice, visit moneyhelper.org.uk. In 2025, with the right choice, you can bridge the gap to your next payday without falling into a debt spiral.