The Best Personal Loans Compared
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Looking to tidy up your finances, buy a car, or make some small improvements to your home? A personal loan might be an ideal option to help you finance it.
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This is a selection of some of our personal loan lenders. Press the ‘check my eligibilty’ button to get an automated approval. This will not impact your credit score.
Loan Type:
Unsecured
Representative APR:
16.9% APR
Available Amounts:
£1,000 to £30,000
Min / Max Terms:
1 to 7 Years
+ More info
Representative Example: Representative APR 16.9% (fixed). Based on a loan of £10,000 over 60 months at an interest of 16.9% p.a. (fixed). Monthly repayments of £241.68. Total amount payable £14,500.74. Maximum APR: 34.9%.
Loan Type:
Unsecured
Representative APR:
69.9% APR
Available Amounts:
£1,000 to £8,000
Min / Max Terms:
1 to 5 Years
+ More info
Representative Example: Representative APR 69.9% (fixed). Based on a loan of £2,500 over 24 months at an interest of 54.2% p.a. (fixed). 23 Monthly repayments of £172.74 and a final payment of £172.74. Total amount payable £4,145.76. Maximum APR: 69.9%.
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Loan Type:
Unsecured
Representative APR:
28.1% APR
Available Amounts:
£1,500 to £25,000
Min / Max Terms:
1 to 5 Years
+ More info
Representative Example: Representative APR 28.1% (fixed). Based on a loan of £5,000 over 48 months at an interest of 25.0% p.a. (fixed). 48 Monthly repayments of £165.73. Total amount payable £7,955.24. Maximum APR: 28.1%.
Loan Type:
Unsecured
Representative APR:
31.9% APR
Available Amounts:
£3,000 to £20,000
Min / Max Terms:
3 to 10 Years
+ More info
Representative Example: Representative APR 31.9% (fixed). Based on a loan of £11,500 over 66 months at an interest of 28.01% p.a. (fixed). 66 Monthly repayments of £343.29. Total amount payable £22,657.14. Maximum APR: 34.9%.
Loan Type:
Unsecured
Representative APR:
14.9% APR
Available Amounts:
£2,000 to £20,000
Min / Max Terms:
1 to 5 Years
+ More info
Representative Example: Representative APR 14.9% (fixed). Based on a loan of £5,500 over 36 months at an interest of 14.0% p.a. (fixed). 35 Monthly repayments of £187.90 and a final payment of £187.79. Total amount payable £6,674.29. Maximum APR: 34.9%.
Loan Type:
Unsecured
Representative APR:
39.9% APR
Available Amounts:
£1,000 to £5,000
Min / Max Terms:
1 to 3 Years
+ More info
Representative Example: Representative APR 39.9% (fixed). Based on a loan of £2,000 over 24 months at an interest of 39.9% p.a. (fixed). 24 Monthly repayments of £116.07. Total amount payable £2,785.68. Maximum APR: 69.9%.
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What is a personal loan?
Personal loans are the most common type of loan available. A personal loan allows you to borrow a sum of money which you will repay, with interest, over an agreed period of time.
These loans do not require any collateral (security) such as your house or car. You can borrow up to about £30,000, depending on your status). You would need a good credit score and income to be able to borrow large amounts.
Interest rates vary depending on how much you borrow, your credit score and income.
You can often get accepted for a personal loan faster than most other forms of finance as there is no security involved. It’s possible, in some cases, to get the money the same day as you apply.
Is a personal loan right for you?
You might want to consider a personal loan if…
You need quick access to money for reaching a financial goal
You can’t get the money you need with an alternative loan
You need flexible repayment options
You don’t want to make a large purchase on a credit card
What can I use a personal loan for?
A personal loan can be used for anything from paying off debts and existing loans, buying a new car or getting married. Some people use these loans for a deposit on a larger purchase.
If you are looking for home improvement loans then see our home improvements guide and calculators.
One thing to remember, is that most lenders don’t like you borrow for speculation such as buying Cryptocurrency or investing in shares.
Some lenders don’t like you paying off other debt. However, this can make sense if the debt you’re paying off is a lot higher interest rate than the personal loan you’re taking out.
What are the pros and cons of a personal loan?
Pros:
- Easier to obtain than some other forms of credit
- No security required
- Can help clear up other forms of expensive debt
- Rates could be lower than other options available e.g bank account overdrafts or credit cards
- You can receive the money fast as there is no security
- Instant decision possible
Cons:
- Interest rates could be high if you have had problems in the past
- Large sums could be difficult to obtain
- Any missed payments could harm your credit score
What are the types of personal loans?
Before you choose a personal loan, you should consider different loan types:
Personal loans:
These are the most common type of loan offered by banks and other lenders. They are unsecured and often the acceptance decisions are fast.
Secured personal loans:
Secured loans or homeowner loans are generally secured on a property that you own. You are offering the lender security, so the lender might consider a significantly higher loan amount.
Check out our Secured Loan Calculator
Car loans:
You can take out a personal loan for a car as the purpose of the loan. But there are also car finance loans that are secured on the car. If you don’t repay the loan and the lender can take the car.
Short term loans:
Short-term loans are generally loans from 3 to 18 months. Shop around for a competitive interest-rate for these types of loans.
What’s the difference between an annual rate and an annual percentage rate APR?
These are two terms that often get mixed up due to the fact that they are closely related. The annual rate of interest is the interest you will pay on the loan, excluding other costs. So if you borrow £10,000 over 12 months with an interest rate of 10% you would pay £1000 in interest.
APR is important and differs slightly as it adds in all of the interest plus any additional costs and fees. This way you can compare like for like loans and mortgages even if there are additional fees.
- the interest-rate is the cost of the borrowed loan amount
- the APR is the cost of the borrow loan amount plus the cost of any additional fees and labour costs.
Personal Loan FAQs
How much can I borrow with an unsecured personal loan?
The maximum amount you can borrow depends on your credit history, your current financial situation and what you plan to use the money for.
Personal unsecured loans go from £100 up to £30000. Possibly more, if you are a client of the lender and have an excellent credit history.
The most common amounts are less than £5,000.
How long does it take to get approved?
That depends on the size of the loan your credit score and your personal circumstances. It can take anything from a couple of minutes to a couple of days. The higher the amount the longer it could take.
Who can apply for a personal loan?
Anyone can apply but you will need to have some sort of income to be accepted. The lenders prefer you have been employed for more than 6 months. Some lenders will consider self-employed and other forms of income.
Whatever your situation, you will need to convince the lender that you can afford the monthly repayments. The lender wants to know that you can repay the whole of loan over the term that has been agreed.
How do I get the money?
If you are accepted for the loan, the money will be paid directly into your online bank account or standard bank / building society account. You will need a bank account to be excepted for a personal loan.
This is because most lenders will want you to repay the loan by direct debit. They also like you to have a debit card or credit card linked to the bank account.
What if I have really bad credit?
If you have bad or adverse credit history then most lenders will need full details.
If the credit check shows you have County Court judgements (ccjs) in the recent past then you probably won’t get an unsecured loan.
In Current in arrears with loans and credit? Most lenders wont accept thsi either. This is because lenders want to be confident that you are going to repay the loan.
If you’re a homeowner you may be better off to look at a secured loan. This is because some lenders will have more confidence in you if you offer security.
If you are in financial difficulty then it might be best to talk to someone about a debt management plan.
Can I get a loan if I am not a UK resident?
Most lenders will want you to be a UK resident and earn your income in the UK. I also want to see that your wages are paid into a UK sterling bank account. There are some specialist lenders that may look at your personal circumstances if you are a UK national but not a UK resident.
How can I get the best loan rate?
The best way is to compare multiple lenders and the APRs. Sites like Loan.co.uk do this automatically for you. Your rate will depend on your individual circumstances. Try to make sure all payments on other debts and credit cards are up to date.
Some people make the mistake of just going to their bank and thinking that’s the best deal they can get. There are a lot of loan providers in the UK, so it helps to shop around.
Can I have a personal loan for business?
Personal loans are for your personal and family circumstances. We will probably need a separate business loan if you want to invest it into a business venture.
Can I repay my loan early?
Yes, most lenders will let you do this with no excessive early repayment charges. If you took a fixed rate then you might need to pay a small amount of interest. Just ask your lender for a settlement figure.
You can also make additional lump-sum payments within the loan term with most lenders. You will need to check your loan agreement to confirm this.
What paperwork will I need for my loan application?
If you’re not on the voters role you might have to provide three years worth of residential history. Most Lenders will want you to provide income proof.
Some lenders can varify your income through open banking, where they can see your income into your bank’s current account. You will need to give them permission to do this.
You may have to produce paperwork for anything that can’t be confirmed digitally. For instance, if you are up-to-date with your credit card payments. But the credit reference agency says there are arrears, you may need to provide evidence that you’re up-to-date with your repayments.
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Learn more about personal loans
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Difference between secured loan and unsecured loan
Representative Example for second charge mortgages UK: based on borrowing £18,000 over 120 months. Interest Rate: 5.5% fixed for 60 months with instalments of £213.33. Followed by 60 months at the lenders standard variable rate of 5.7% with instalments of £214.36. Fees: Broker fee (£1,062); Lender fee (£595). Total amount payable £25,756.4 comprised of; loan amount (£18,000); interest (£6,004.4) including broker fee and lender fee. Overall cost of comparison 7.902% APRC. This means 51% or more of our clients receives this rate or better for this type of product. We have arranged borrowing with rates from 3.4% to 29% APRC which has allowed us to help customers with a range of credit profiles. We are a broker not a lender.
Second charge mortgages have a minimum term of 36 months to a maximum term of 360 months. Maximum APRC charged 29%. If you are thinking of consolidating existing borrowing you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.