Emergency Loans

Written by Alice, Editor · Reviewed by Stephen, Compliance

An emergency loan is a short-term loan for an urgent, unplanned cost: a boiler that’s packed up, a car repair you need to get to work, or a bill you can’t push back. Through CashPanda you can apply in about two minutes and, if a lender approves you, the money can often reach your account the same day.

What counts as an emergency?

An emergency is a cost you can’t plan for and can’t put off. For example:

• Fixing your car when you need it for work
• Repairing or replacing a boiler or washing machine
• Travel at short notice for a family emergency
• An urgent vet bill
• A rent or energy bill that will cost you more if it’s paid late

If the cost can wait until payday, or until you’ve saved up, waiting is almost always cheaper than borrowing.

How fast can I get an emergency loan?

The application takes about two minutes, and most lenders on our panel give a decision within minutes. If you’re approved and sign your agreement on a working day, many lenders pay within a few hours. Applications late in the evening or at weekends may be paid the next working day.

To avoid delays, have your bank details, your employer’s details and your monthly income and outgoings ready.

How much does an emergency loan cost?

Emergency loans are usually high-cost short-term credit, so they cost more than a bank loan. The FCA caps the cost:

• Interest and fees can’t be more than 0.8% of the amount borrowed per day.
• If you pay late, default fees are capped at £15.
• You’ll never repay more in interest and charges than the amount you borrowed. Borrow £300, and the most you can be charged in total is £300.

Representative example: borrowing £1,000 over 12 months at £116.52 a month, you would repay £1,392.63 in total, including £392.63 interest. Interest rate 79.5% a year (variable). Representative 79.5% APR (variable).

Cheaper options to check first

• Ask the company you owe. Energy suppliers, councils and landlords often agree a payment plan, and that costs nothing.
• Budgeting advance. If you get Universal Credit, you may be able to get an interest-free advance from the DWP for emergency household costs.
• Local support. Your council may run a local welfare scheme that helps with essentials such as food, energy and white goods.
• Credit union. Credit unions are not-for-profit, and their interest is capped at 42.6% APR.
• Your employer. Some employers offer salary advances or hardship funds.

Can I get an emergency loan with bad credit?

Many lenders on our panel consider applicants with low credit scores, defaults or CCJs. They focus on whether you can afford the repayments now. Approval isn’t guaranteed, and if you’d be borrowing to repay another loan, free debt advice is likely to help more than new credit.

Frequently asked questions

Can I get an emergency loan the same day?

Often, yes, if you’re approved and sign during working hours. The exact timing depends on the lender and your bank.

Do I need a guarantor?

No. Loans arranged through CashPanda don’t need a guarantor.

Is CashPanda a lender?

No. CashPanda is a credit broker, authorised and regulated by the Financial Conduct Authority. We introduce you to lenders, and the lender decides whether to offer you a loan. Our service is free to use.

Can I repay early?

Yes. You have the legal right to repay early, and you’ll pay less interest.

Warning: late repayment can cause you serious money problems. For free, confidential help, go to MoneyHelper.