Community Finance.
A Payday Loans alternative.
If you're looking for a short term loan, Community Finance options can be a much cheaper alternative to a traditional home credit or payday loan.
Representative 28.3% APR
350+ Community led lenders in the UK
No contact details required for a match
Personal and Inclusive lending
What is Comuno?
Comuno promotes Community Finance. Over our history in the industry, we've seen millions of customers searching for loans online, oblivious to the services that the likes of Credit Unions and Not-for-profit lenders can offer.
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Our mission is to make finding these options easy for you so that you can benefit from fairer, more affordable credit options.
350+ community led providers in the UK
Getting a short term loan with Comuno
Here's how it works..
Step 1 - Find your community
Based on just your postcode, work or existing associations we’ll narrow you down a suitable Credit Union or CDFI.
Match in 30 secs with no contact details
Step 2 - Check your eligibility
You can then check your eligibility for your loan or membership (if a credit union). This way you won’t impact your credit file, or waste any unnecessary time.
Check has no impact on your credit file
Step 3 - Review quote & apply
If eligible we’ll present you with a personalised loan quote. If you decide to continue we’ll send you and your details to the lender to finalise your application. Zero hassle.
Application sent direct to lender
What is a short term loan?
A short term loan is a loan repaid over a short period of time. Typically between 3 and 12 months. Loans repaid over this timeframe are typically between £100 to £2000.
How do small loans from Community Finance providers compare to a typical UK short term or pay day loan.
Traditional Short-term loan providers such as Mr Lender and Lending Stream are capped on the amount of interest they can charge. Credit Unions are also capped on what interest they can charge, this is set 42.6% per year.
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Here's how prices could compare borrowing £500 over 6 months.
Community Finance*
Loan amount: £500
Loan term: 6 months
Monthly Repayment: £90.35
Total you will repay: £542.07
Representative APR: 28.3%
Representative Example: Borrowing £500 over 6 months at an interest rate of 28.3% p.a. (fixed), you will repay 6 monthly payments of £90.35 per month. Interest Payable £42.07. Total Repayable £542.07.
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*rates taken from Transave UK on 18/01/24
Short Term Lender*
Loan amount: £500
Loan term: 6 months
Monthly Repayment: £165.68
Total you will repay: £995.28
Representative APR: 1299.6%
Representative Example: Borrowing £500 over 6 months at an interest rate of 292% p.a. (fixed), you will repay 6 monthly payments of £165.68 per month. Interest Payable £445.88. Total Repayable £995.28.
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*rates taken from Quidmarket on 18/01/24
The best short term loans...
If you are looking for a small loan of less than £1500 then Community Finance options such as Credit Unions and Not-For-Profit lenders can often be your best option. Here's why..
Cheaper than bad credit payday loans
Short and long term loans for all purposes
Strong ethical stand point
Led by customer wellbeing and not profits
Inclusive lending for diverse credit history
The impact on your credit file
When you apply for a loan with a direct lender they will check your credit history. This check will be visible on your credit file for others to see. If you have a lot of searches on your file in a short space of time this could raise questions when applying for a loan and could impact your chance of being approved.
Using Comuno to locate suitable Community Finance providers will not impact your Credit File
Can I get a loan with no credit check?
Although an increasing amount of lenders are using additional methods to assess whether or not to lend to customers they will always complete a credit check.
Are short term loans bad for credit rating?
Borrowing small amounts regularly could indicate that you rely too heavily on credit. This may lower your credit score and could be viewed negatively by some loan providers.
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If you do use short term credit it's important to ensure you repay on time and in full.