Loans by MAL Loans Review: Bad Credit Loans Pros, Cons & Features

Loans by MAL loans: at a glance

Loans by MAL offers unsecured personal loans, and it may consider your application if you have a less-than-perfect credit score.

Compared to other lenders we’ve reviewed, Loans by MAL can take a bit longer to pay out a loan. While some will pay out on the same day you’re approved, Loans by MAL could take up to five working days to do this.

But, unlike many of the lenders we’ve looked at, Loans by MAL doesn’t apply any interest charges if you want to pay off your loan early. 

Nerdy Tip: As with any loan, it’s sensible to only borrow what you need and pay it back as quickly as possible, based on what you can comfortably afford to repay each month. Before applying for a bad credit loan, it’s important you consider your alternatives and whether you could keep making the payments if an unexpectedly high bill landed on your doorstep or you lost your job, for example. Missing payments will make an already bad credit score worse.

Loans by MAL loans pros & cons

The pros and cons featured here are chosen by us based on a combination of our expert opinions from our research of the bad credit loans market and an exclusive survey of UK consumers conducted on behalf of NerdWallet UK in February 2023 to identify the features of bad credit loans that people feel are most important. They are not the only product features and restrictions that you should consider. You should align them to your personal circumstances. Information was correct at the time of publication but may have changed since. Rates have NOT been considered in our review of this product.

Loans by MAL loans overview

Loans by MAL is a trading name of Monthly Advance Loans Limited. It provides unsecured loans of £1,000 to £5,000, although you can only borrow a maximum of twice your monthly income. You can choose to repay the loan over a term of nine to 24 months and use the money to cover many different costs.

With a Loans by MAL loan, you can make overpayments or settle your debt in full without facing any charges. This can help save you money on the amount of interest you pay overall.

But Loans by MAL can take up to five working days to transfer the loan to your account once you’ve signed your loan agreement, so it may not be the best option if you need the money quickly.

Amount borrowable	£1,000 to £5,000
Term length	Nine to 24 months
Time to get a decision	Within 24 hours
Time to receive funds once approved	One to five working days
Need to have an account with the provider	No
Customer support	Phone, email
Trustpilot rating	4.8 (8 September 2023)

Before you apply for a loan, it’s worth using a loan eligibility service. This can help you to see how likely you are to get a loan from different lenders, without affecting your credit score. Make sure you check that it only uses soft searches and how many lenders it compares.

Where Loans by MAL loans stand out

You won’t pay any charges to settle your loan early

If you want to pay off your loan from Loans by MAL before the end of the term, you won’t need to pay any charges. Loans by MAL does not currently apply any fees or interest charges, unlike some lenders we’ve reviewed.

You can change your repayment date

Loans by MAL allows you to change your loan repayment date if a different day works better for you. You don’t need to pay a fee to do this, but it could affect the amount of interest you pay.

Where Loans by MAL loans fall short

It could take five working days to get your loan

Once Loans by MAL approves a loan application, it could take one to five working days to get the money in your account. This is longer than many lenders we’ve reviewed, some may be able to transfer the loan on the same day you’re approved.

The maximum repayment term is 24 months

The longest repayment term available from Loans by MAL is 24 months. This is shorter than many other lenders who may offer repayment terms of up to five years. But a shorter repayment term isn’t necessarily a bad thing because it means you pay less interest in total than if you borrowed over a longer period.

What type of loans does Loans by MAL offer?

Bad credit loans

Loans by MAL offers unsecured personal loans of £1,000 to £5,000 that you can repay over nine to 24 months.

You can apply to borrow up to twice your monthly income, although this will also depend on your loan term.

Loans by MAL considers applications from people who may not have the best credit history, although you would still need to pass its credit and affordability assessment.

Bear in mind that your credit file will show all loan applications and multiple applications in a short period could affect your score. So you should only apply for a loan if you are confident of being approved.

If you have a bad credit score, you are likely to be charged a higher rate of interest than someone with a good score. Because of this, it may be worth improving your credit score before applying for a loan.

You should also consider whether borrowing money is the right option for you, or if you would benefit more from getting professional debt advice instead.

» MORE: Best bad credit loans

Joint loans

You can’t get a joint loan from Loans by MAL. You can only apply as an individual.

If you want to apply for a joint loan with a family member or friend, you will have to consider other lenders.

Am I eligible for a Loans by MAL loan?

To get a loan from Loans by MAL you need to:

• be aged between 21 and 75
• live and work in the UK
• earn at least £1,300 per month, after tax.

You also need to have a valid UK debit card to apply.

You may be able to get a loan if you have a poor credit history and a county court judgment (CCJ), for example, but Loans by MAL will only approve your application if you pass its credit and affordability checks. 

Loans by MAL loan features review

The features of a loan from Loans by MAL are fairly typical, although there are no early repayment charges if you want to settle your loan early.

Making payments

You can repay a loan from Loans by MAL in fixed monthly instalments by direct debit or a continuous payment authority (CPA). A CPA is when a company takes a payment through your debit card, rather than directly from your bank account.

When you apply for a loan, Loans by MAL automatically sets the repayment date to the first of the month. But you can contact Loans by MAL to change this to a date that suits you better.

Before changing your payment date, it’s worth checking if this will affect the amount of interest you pay.

Overpayments

If you have a loan from Loans by MAL, you can pay more than your agreed monthly payments. You could pay a one-off lump sum or pay a little bit extra each month. This can help you pay off your loan quicker and pay less interest overall.

Loans by MAL doesn’t charge any fees if you want to make an extra repayment. 

You can make a payment through your online account but, before you do this, it’s worth double checking if there are any limits to the amount you can overpay.

Paying off a loan early

If you have enough money spare, you could pay off your loan from Loans by MAL before the end of the term. 

This means you won’t pay as much interest as if you continued to make your monthly repayments as planned and, unlike some lenders, Loans by MAL won’t apply any fees or charges to do this. 

Several of the lenders we’ve reviewed apply interest charges if you want to settle your loan early, but this isn’t the case with Loans by MAL.

» MORE: Paying off a loan early

Additional borrowing

If you’re already paying off a Loans by MAL loan you won’t be able to apply for a further loan.

You can only apply for another loan from Loans by MAL once you’ve paid off your existing loan in full.

Customer support

Loans by MAL is an online lender, which means you can’t get any customer support in person.

Instead, you can contact Loans by MAL by phone or email.

Customer ratings

Loans by MAL has a rating of 4.8 stars on Trustpilot, based on over 600 customer reviews.

Loans by MAL isn’t one of the lenders that the independent review site Fairer Finance has rated.

This information is correct as of 8 September 2023.

How can I apply for a Loans by MAL loan?

You can apply for a loan from Loans by MAL online. You’ll need to fill in some information about yourself and say how much you want to borrow over what repayment term.

When you submit your application, Loans by MAL will run a soft credit check which won’t affect your credit score. If you pass the checks, Loans by MAL may preapprove you for a loan.

This means that subject to final checks, your application for a loan is likely to be accepted. If you want to continue your application, Loans by MAL will run a hard credit check (which will appear on your credit file) and final affordability assessments before deciding whether to offer you a loan.

Loans by MAL uses open banking to view your recent bank statements, which can help it to work out whether a loan is affordable for you or not.

What information do I need?

To apply for a loan, you need to provide Loans by MAL with your:

• name
• address
• contact details
• monthly income
• source of income.

How long does it take to apply?

When you apply for a loan from Loans by MAL, you should hear back with a decision within 24 hours. If approved, you’ll need to sign your loan agreement online and you should get the money in your account in one to five working days.

Help if you’re struggling with debt

Late repayments can cause you serious money problems. Consolidating multiple debts into one loan can extend the term of your borrowing and increase your cost of borrowing 

If you are struggling with debt, you can seek advice from a debt advice service, such as:

• Citizens Advice    
• MoneyHelper (formally The Money Advice Service)  
• National Debtline   
• StepChange   
• The Money Charity