£100 Loan

Needing £100 urgently can feel stressful. Whether it’s for a minor emergency or unexpected cost, borrowing just a small amount might seem like a quick fix. At Dot Dot Loans, we understand that even small loans should be handled carefully, especially given high-cost short-term credit rules and your right to transparent, consumer-friendly borrowing assistance.

Representative 79.5% Rates from 48.1% APR to 1721% APR. The minimum Loan Term is 3 months. The maximum Loan Term is 36 months. Representative Example: £1,000 borrowed for 18 months. Monthly Repayment of £89.22. The total amount repayable is £1605.96. Interest amounts to £570.44, an annual interest rate of 59.97% (fixed) Representative APR: 79.5% (variable).

What Is a £100 Loan?

A £100 loan is a type of short-term credit (sometimes called a payday loan or HCSTC—High-Cost Short-Term Credit) designed to cover immediate expenses. Normally repaid within 30 days (or shorter), it’s often used when someone doesn’t have access to larger borrowing options or an overdraft.

Under FCA-authorised schemes, £100 loans come with strict limits on fees and interest to reduce risks to the borrower.

FCA Rules and Regulation

Since 2 January 2015, the FCA has enforced protections for high-cost short-term credit:

Daily interest and fee cap of 0.8% of the loan amount
Default fees capped at £15, plus continuing interest capped at 0.8% per day on outstanding amount
Total cost cap of 100% of the borrowing amount—so a borrower will never repay more than twice what they borrowed

For example, if you borrow £100 and repay on time within 30 days, you will not pay more than £24 in interest and fees. The absolute most you would ever repay is £200, even with late payments or rollovers.

Other rules include:

Lenders must conduct strict affordability checks before offering credit
Only two rollovers of the same loan are permitted
Lenders must clearly explain how continuous payment authorities (CPAs) work, and you can cancel one at any time

These safeguards are designed so even small loans remain affordable and fair.

Common Uses for a £100 Loan

Utility Bills

Cover overdue bills to avoid late fees or service interruptions.

Emergency Expenses

Pay for minor repairs, medical costs, or other urgent needs.

Short-Term Cash Flow

Bridge financial gaps until your next payday.

Small Purchases

Buy essentials or unexpected items when funds are low.

Benefits of a £100 Loan

Fast Approval and Funding

Most £100 loans are processed quickly, with same-day funding available from many lenders.

Fixed Repayments

Predictable repayment terms make it easy to budget.

Accessible for Poor Credit

Many lenders offer £100 loans to individuals with less-than-perfect credit, focusing on affordability.

Flexible Terms

Repayment options range from a single payment to instalments over a few months.

Risks and Downsides

Even a £100 loan can introduce serious risks if not understood:

Low competition in the market means many firms charge up to the maximum cap, offering limited savings to consumers
High cost relative to borrowing amount, even under FCA caps
Late or missed repayments may result in extra charges, though capped at £15
Continuous Payment Authority means the lender can debit your account directly. If you’re low on funds, you risk bank charges or bounced payments
Rollovers compound costs, and you could easily end up paying far more than the original amount

Who Can Apply for a £100 Loan?

Individuals aged 18 or older with a UK bank account.
Borrowers with regular income.
People with varying credit histories, including those with poor credit.

Alternatives to a £100 Loan

If a £100 loan isn’t suitable, consider:

Overdrafts: An authorised overdraft for short-term borrowing.
Credit Union Loans: Community-based loans with fair terms and low interest rates.
Payday Loans: For quick, lump-sum repayment after your next payday.