£90: What You Need to Know About Small Loans

Updated
Oct 1, 2025 5:40 PM
Written by Nathan Cafearo
Need to borrow £90? This guide explores your lending options, the costs involved, eligibility, alternatives, and key considerations to help UK consumers make informed, responsible borrowing decisions.

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Navigating a £90 Loan: What Are Your Options?

For many UK consumers, needing to borrow £90 is not uncommon. Whether it’s a shortfall before payday or an unexpected bill, understanding how to access a small sum safely and at a reasonable cost is vital.

Who Might Need a £90 Loan?

This guide is for anyone facing a short-term cash gap—students, part-time workers, or those managing irregular incomes. If you need to borrow £90 to cover essentials or emergencies, understanding your options can help you avoid high fees or risky borrowing.

Key Terms and Concepts

Before borrowing, it’s important to understand these terms:

  • APR (Annual Percentage Rate): The annual cost of borrowing, including interest and fees.

  • Short-term loan: Typically for a small amount (like £90), repaid within weeks or months.

  • Credit score: A measure of your creditworthiness, influencing loan approval and rates.

  • Direct lender: A company that lends money directly, as opposed to a broker who finds you a lender.

Small loans often come with higher APRs due to the short repayment period and perceived risk by lenders. Always check the total repayment, not just the advertised rate.

What Are Your Borrowing Options for £90?

There are several ways UK consumers can access £90:

  1. Short-Term Payday Loans: Designed for urgent, small borrowing—but often carry high costs. Repayment is usually required in full by your next payday.

  2. Credit Unions: Some offer small, affordable loans to members. These are often more forgiving on credit and have lower interest rates.

  3. Overdrafts: If you have a current account with an arranged overdraft, using it for a £90 shortfall can be cost-effective, but watch for daily fees.

  4. Buy Now, Pay Later Services: Useful for purchases, but ensure you’ll have funds for repayment to avoid penalties.

  5. Friends or Family: Informal borrowing can be interest-free, but it’s wise to agree terms in writing.

  6. Retail Finance Brokers: Companies like Kandoo help you find regulated lenders for small loans, offering a comparison of options and rates.

Table: Example Comparison for £90 Loan

Option Typical Repayment Pros Cons
Payday Loan £105–£120 Fast, accessible High cost, fees
Credit Union £91–£95 Low interest, ethical Membership required
Overdraft £91–£100 Immediate, flexible Fees, possible impact
BNPL £90–£95 No/low interest For purchases only
Friends/Family £90 No interest Relationship risk

Costs, Impact, and Risks

Small loans can be deceptively expensive. For £90, a payday lender may charge £15–£30 in interest and fees, making the APR appear sky-high. Overdrafts can rack up daily charges if not cleared promptly. Late or missed payments can damage your credit score, affecting future borrowing.

Key risks:

  • High fees for late repayment

  • Debt spiral if you borrow repeatedly

  • Impact on credit rating

It’s crucial to only borrow what you need and have a clear repayment plan.

Eligibility and Requirements

Most lenders require:

  • UK residency and a UK bank account

  • Proof of income (employment or benefits)

  • Minimum age (usually 18+)

  • No recent history of bankruptcy

Credit checks are likely, though some lenders are more flexible. Credit unions may require you to be a member for a certain period before borrowing.

Step-by-Step: How to Apply for a £90 Loan

  1. Assess your need and repayment ability

  2. Check your credit score

  3. Compare lenders and loan options

  4. Gather documents (ID, proof of income)

  5. Complete the application online or in-branch

  6. Wait for approval (can be instant for some lenders)

  7. Review the loan agreement carefully

  8. Receive funds if approved

Pros, Cons, and Key Considerations

Pros:

  • Quick access to cash

  • Can bridge short-term gaps

  • Multiple options available

Cons:

  • Potentially high cost for small amounts

  • Risk of debt if mismanaged

  • Strict eligibility with some lenders

Carefully weigh the urgency against the true cost. Borrowing small amounts repeatedly can become expensive.

Before You Decide: What to Watch Out For

  • Hidden fees: Look for application, late payment, or early repayment charges.

  • Loan terms: Ensure you understand when and how much you need to repay.

  • Regulated lender: Use only FCA-authorised lenders or reputable brokers like Kandoo.

  • Alternatives: Would a budget adjustment, overdraft, or credit union loan serve you better?

Always check the total repayable amount. A low monthly payment may hide higher overall costs.

Alternatives to a £90 Loan

  • Budgeting: Can you cut non-essential spending to free up funds?

  • Employer advances: Some employers offer salary advances for emergencies.

  • Community support: Charities or local councils sometimes provide grants or interest-free loans.

  • Sell unused items: Quick cash without borrowing.

Exploring these may help you avoid debt altogether.

Frequently Asked Questions

Can I get a £90 loan with bad credit? Some lenders and credit unions consider applicants with poor credit, but expect higher costs or stricter terms.

How quickly will I receive the money? Payday and online lenders can approve and deposit funds within hours. Credit unions and banks may take longer.

Will a £90 loan affect my credit score? Any borrowing can impact your score. On-time repayment helps; missed payments harm it.

Are there fees for early repayment? Some lenders charge early repayment fees, but many do not—read the terms before signing.

Is it better to use an overdraft or take a loan? For small, short-term needs, an authorised overdraft can be cheaper, but be wary of daily fees.

What if I cannot repay on time? Contact your lender immediately—they may offer a payment plan. Avoid borrowing further to cover repayments.

Next Steps

If you need to borrow £90, start by reviewing your budget and considering all options. Compare lenders carefully, using reputable brokers if needed. Make sure you understand all costs and have a clear repayment plan before committing.

Disclaimer

This article is for informational purposes only and does not constitute financial advice. Please consider your circumstances carefully and consult a qualified financial adviser or regulated lender before making borrowing decisions.

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Looking to offer finance options to my customers

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