7 Best Payday Loan Alternative Lenders That You Can Rely On

When you’re short on cash and your bills won’t wait, it can be tempting to turn to payday loans for quick relief. However, while payday lenders promise speed, their sky-high interest rates and short repayment terms can trap borrowers in a costly cycle of debt.

Fortunately, there are safer, more reliable options available in the UK, like lenders that put fairness and affordability first. From ethical finance providers to specialist loan companies serving people with less-than-perfect credit, these alternatives can give you the breathing room you need without breaking the bank.

In this guide, we’ve rounded up 7 of the best payday loan alternative lenders you can genuinely rely on. If you’re looking for a small, short-term boost or a longer repayment plan, these options are designed to help you borrow responsibly and protect your financial future.

1. Salad

Salad is a UK-based ethical lender specialising in small, affordable loans for all employed individuals.

Unlike traditional lenders that rely heavily on credit scores, Salad uses Open Banking technology to assess real affordability based on your income and spending patterns. This makes them a fair option for those with poor or limited credit histories who might otherwise be pushed towards payday loans.

For Salad’s ethical loans, the amounts typically range from £300 to £2,000, with clear, fixed repayment terms of 6 to 24 months and no hidden fees. They also offer a significantly lower interest rate than many payday lenders.

They focus on responsible lending, ensuring repayments fit comfortably within your budget. Plus, they provide fast decisions and transparent pricing, making them a reliable choice for key workers needing manageable funding.

Salad is also authorised and regulated by the FCA, and they’ve secured the first Open Banking license given to an independent lender in the UK.

Here’s an amazing review of Salad from Rosa:

“This was my first loan, and I was surprised at how easy the whole process was. Everything was clear, and the customer service was excellent.”

2. QuidMarket

QuidMarket is a UK-based, FCA-authorised direct lender specialising in short-term instalment loans for borrowers with poor or thin credit histories. Loans range from £300 to £600 for new customers, expanding to £1,500 for returning borrowers, with flexible repayment terms of 3 to 6 months.

Their application process is mostly manual, meaning no bots, providing a human-led assessment that emphasises affordability over credit score alone. A representative example is a £500 loan over 5 months at a fixed annual interest rate of 292%, equating to a 1298.9% APR.

QuidMarket boasts excellent Trustpilot scores (over 92% five-star reviews) and offers quick funding, often via Faster Payments on the same day. While it’s costly, its transparency and flexibility make it a great alternative to traditional payday loans for qualified borrowers.

3. Lending Stream

Lending Stream is a UK direct lender offering short-term instalment loans as an alternative to traditional payday borrowing.

New customers can apply for amounts between £50 to £800, and returning borrowers can apply for up to £1,500, repayable over 6 or 12 months, making it easier to manage than a single lump-sum payday repayment.

The application process is entirely online, with fast decisions and funds often available within minutes of approval. Lending Stream also considers applicants with less-than-perfect credit, but affordability checks are still carried out to ensure responsible lending.

Their representative APR is 1,271%, reflecting the high cost for short-term credit, so it’s important to borrow only what you can repay. While it’s more expensive than credit unions or CDFIs, Lending Stream is quick and offers flexibility for urgent financial needs.

4. LoanPig

LoanPig operates in the UK as both a direct lender and a credit broker, offering short-term loans ranging from £50 to £1,500, repayable over 1 to 12 months. Their representative APR can be as high as 1,261%, though interest rates can start around 49.9%, depending on your loan terms.

The application is fully online, allowing for quick decisions and, in some cases, funds in your account within 15 minutes. Plus, LoanPig charges no upfront fees, and loans can be repaid early without penalty, adding some flexibility.

They’re also regulated by the FCA and rated “Great” on Trustpilot, so they may be a viable but costly option for urgent borrowing needs.

5. Evlo (formerly Everyday Loans)

Evlo (formerly Everyday Loans) is a UK-based direct lender tailored to individuals with poor or thin credit histories, who are often shut out by mainstream banks.

Borrowers can access personal loans from £1,000 up to £15,000, repaid over 18 to 60 months. A standout feature is the soft credit check during initial applications, helping preserve your credit score while you’re exploring your eligibility.

Evlo’s representative APR is 99.9%, though actual APRs vary widely, from 30.5% up to around 252.7%, depending on individual credit status and circumstances. They’re regulated by the FCA and have a physical branch network, so they balance accessibility with a personal, more human-led lending approach.

This makes Evlo a viable, if relatively high-cost, option for borrowers seeking transparent, structured credit solutions when mainstream options aren’t available.

6. Finio Loans

Finio (formerly Likely Loans) is a UK-based direct lender under Oakbrook Finance that caters specifically to borrowers with poor or limited credit histories.

You can apply for unsecured personal loans ranging from £500 to £5,000, with flexible repayment terms spanning 12 to 36 months. The representative APR is 39.9%, though depending on your circumstances, it can go as high as 69.9%.

Finio’s online application process is streamlined and transparent, often providing same-day funding upon approval, and they uphold fair practices, including no early repayment penalty.

With high Trustpilot ratings and a reputation for supporting those with less-than-perfect credit, Finio offers a relatively reliable, albeit costlier, alternative to traditional payday loans when options are limited.

7. Fair for You (CDFI Model)

Fair for You is a UK-based Community Interest Company (CIC) owned by the Fair Credit Charity. It’s operating as a not-for-profit, ethical lender focused on helping financially excluded households purchase essential household goods.

Instead of dispensing cash, they offer loans to buy items you own from day one, like appliances, at low, transparent costs and with flexible repayment schedules. Their APR is 55.6%, which is significantly lower than typical rent-to-own or payday alternatives, and their monthly interest rate is 4.25%, with no setup, early repayment, or missed-payment fees.

Customers can also choose how often to repay, like weekly, monthly, etc. and adjust the schedule if circumstances change. Overall, with strong Trustpilot ratings and a mission-driven model, Fair for You stands out as a compassionate, reliable lending alternative for those in need.

To Sum Up

Finding yourself in need of quick cash doesn’t have to mean turning to payday loans with sky-high interest and risky repayment terms.

The lenders we’ve covered, ranging from ethical providers like Salad and Fair for You to flexible short-term lenders such as QuidMarket and Lending Stream, offer more transparent, affordable, and responsible borrowing options.

While costs and eligibility vary, each one is regulated by the Financial Conduct Authority (FCA) and committed to lending in a way that prioritises fairness and financial well-being.

That said, before applying, you should always check the APR, terms, and your ability to repay comfortably. By choosing the right lender, you can get the support you need today without compromising your financial stability in the long run.