Compare Personal Loans

Compare our range of personal loans from UK lenders, check your eligibility* and get instant personalised quotes without impacting your credit score

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14 products found
  • TSB Personal Loan logo

    TSB Personal Loan

    • Loan Type
      Unsecured
    • Representative APR
      2.8% APR (£7,500 to £25,000)
    • Available Amounts
      £7,500 to £25,000
    • Min / Max Terms
      1 to 7 years
  • AA Personal Loan - Breakdown Cover included* logo
    Broker

    AA Personal Loan - Breakdown Cover included*

    • Loan Type
      Unsecured
    • Representative APR
      3.0% APR (£15,001 to £25,000)
    • Available Amounts
      £1,000 to £25,000
    • Min / Max Terms
      1 to 7 years
  • Post Office Money Personal Loan logo
    Broker

    Post Office Money Personal Loan

    • Loan Type
      Unsecured
    • Representative APR
      3.2% APR (£7,500 to £15,000)
    • Available Amounts
      £1,000 to £25,000
    • Min / Max Terms
      1 to 7 years
  • Shawbrook Personal Loan logo

    Shawbrook Personal Loan

    • Loan Type
      Unsecured
    • Representative APR
      14.9% APR
    • Available Amounts
      £1,000 - £30,000
    • Min / Max Terms
      1 to 7 years
  • Freedom Finance logo
    Broker

    Freedom Finance

    • Loan Type
      Unsecured
    • Representative APR
      15.9% APR
    • Available Amounts
      £500 to £25,000
    • Min / Max Terms
      1 to 7 years
  • My Community Finance Personal Loan logo

    My Community Finance Personal Loan

    • Loan Type
      Unsecured
    • Representative APR
      18.02% APR
    • Available Amounts
      £1,500 to £25,000
    • Min / Max Terms
      1 to 5 years
  • KOYO Personal Loan logo

    KOYO Personal Loan

    • Loan Type
      Unsecured
    • Representative APR
      24.9% APR
    • Available Amounts
      £1,500 - £12,000
    • Min / Max Terms
      1 to 5 years
  • Oplo Personal Loan logo

    Oplo Personal Loan

    • Only available to homeowners
    • Loan Type
      Unsecured
    • Representative APR
      27.8% APR
    • Available Amounts
      £2,000 to £15,000
    • Min / Max Terms
      2 to 6 years
  • Lendable Personal Loan logo

    Lendable Personal Loan

    • Loan Type
      Unsecured
    • Representative APR
      28.6% APR
    • Available Amounts
      £1,000 to £25,000
    • Min / Max Terms
      1 to 5 years
  • Guarantor My Loan logo

    Guarantor My Loan

    • Loan Type
      Guarantor
    • Representative APR
      48.9% APR
    • Available Amounts
      £1,000 to £10,000
    • Min / Max Terms
      1 to 5 years
  • 118 118 Personal Loan logo

    118 118 Personal Loan

    • Loan Type
      Unsecured
    • Representative APR
      49.9% APR
    • Available Amounts
      £1,000 to £5,000
    • Min / Max Terms
      1 to 3 years
  • Bamboo Personal Loan logo

    Bamboo Personal Loan

    • Loan Type
      Unsecured
    • Representative APR
      59.7% APR
    • Available Amounts
      £1,000 to £8,000
    • Min / Max Terms
      1 to 5 years
  • Likely Loans Personal Loan logo

    Likely Loans Personal Loan

    • Loan Type
      Unsecured
    • Representative APR
      59.9% APR
    • Available Amounts
      £500 - £5,000
    • Min / Max Terms
      1 to 3 years
  • Everyday Loans Personal Loan logo

    Everyday Loans Personal Loan

    • Loan Type
      Unsecured
    • Representative APR
      99.9% APR
    • Available Amounts
      £1,000 - £15,000
    • Min / Max Terms
      18 months - 5 years

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.

Our service is free of charge but we receive commissions from the providers we refer you to. This table is initially ordered by representative APR. You can use the options above the table to order it according to various criteria. You may be offered different rates depending on your personal credit rating.

Our comparison service features a selection of providers from whom we receive commission.

*Eligibility Service:

The loans eligibility service is provided by Freedom Finance. The data you supply and submit is used to retrieve loan quotes from Freedom's panel of lenders. By using their loans eligibility service you are agreeing to Freedom's terms and conditions and privacy policy which can be found at freedomfinance.co.uk

Freedom Finance is a trading style of Freedom Finance Limited who are authorised and regulated by the Financial Conduct Authority. Freedom Finance Limited. Registered Office. Atlantic House, Atlas Business Park, Simonsway, Manchester, M22 5PR. Registered in England & Wales 06297533. FCA No. 662079. VAT Registration Number 257 0001 44.

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Information written by Rhiannon Philps Last updated on 09 September 2021.

What is a personal loan?

A personal loan allows you to borrow a sum of money which you will repay, with interest, over an agreed period of time.

Most personal loans are unsecured, which means you don’t need to put up your house or other property as collateral.

They are available from traditional high street banks, online challenger banks and specialist lenders, and can be used for many different reasons such as home improvements, holidays, weddings, debt consolidation and major purchases like a new car or a new appliance.

Often you will be able to borrow between £1,000 and £25,000, but some providers may be willing to lend you more or less than this. Terms typically range from one to seven years.

» MORE: How to get a loan

Types of loans

The two main types of loan are secured and unsecured. Most personal loans will be unsecured.

Unsecured loans: These loans are not secured against any property. Because this increases the risk for the lender, interest rates can be higher than secured loans and there’s a limit to how much you can borrow.

Examples of unsecured loans include:

  • Personal loans: Offered by banks and alternative lenders. The amount you are offered and the term available will depend on your credit score and affordability checks among other factors.
  • Peer-to-peer loans: Arranged through online peer-to-peer platforms, these involve members of the public lending to others who need access to funds.
  • Short-term loans: These are personal loans offered over short periods of time: usually up to around a year. Loan amounts and terms are limited and interest rates can be high.
  • Payday loans: These are extremely short-term loans, which are repayable, usually in one single payment, within days of taking the loan out. High interest rates are commonplace.
  • Guarantor loans: Can be offered to those with poor credit ratings who have someone who will commit to repaying a loan if the borrower is unable. Bear in mind that some lenders will require the guarantor to be a homeowner, which could put their property at risk should the borrower default on their loan.

Secured loans: Often used to borrow larger sums of money over a longer period of time. Borrowers will put some property, usually their home, up as security, which reduces the risk for the lender. Secured loans can offer lower interest rates, but they come with more risk for the borrower as the lender could repossess their home if they don’t keep up with repayments.

Examples of secured loans include:

  • Homeowner loans: This is the most common form of secured personal loan. They are available only to homeowners who are willing to put the equity they have in their home forward as security for their loan.
  • Car finance loans: These loans are taken out against the value of the car you are about to buy. There are various types of car finance deals, but each usually uses the car’s value as security.
  • Bridging loans: These loans are often used when purchasing homes as a means of bridging the gap between selling one home and getting a new mortgage on another, for example. They are usually secured against your current home.

Consider all your options before applying to make sure you get the best loan for your situation.

How do personal loans work?

When you apply for a personal loan, the lender will need to know some personal details including your income and employment status, how much you want to borrow and over what length of time. They will review this information and perform a credit check to help them decide whether to lend to you.

If your application is approved, the lender will give you all the necessary information about your loan, including the interest rate, the repayment schedule and any potential fees, so you should make sure you understand these terms before agreeing to the loan.

Once your loan is approved, the money could be in your account relatively quickly, sometimes within a day. You will then be able to use the money as you wish, making your monthly repayments to the lender over the agreed period of time.

You will then be able to use the money as you wish, making your monthly repayments to the lender over the agreed period of time.

What are the advantages and disadvantages of a personal loan?

Like with any credit option, there are pros and cons to taking out a personal loan.

Advantages

  • You can pay for something upfront and spread the cost over a longer period of time.
  • You can often apply for a loan and receive the money relatively quickly.
  • You may be able to borrow money at a lower rate than some other options, for example a credit card.
  • Interest rates and monthly repayments will normally be fixed, so the amount you pay each month won’t change.

Disadvantages

  • A personal loan can have a higher rate of interest than some other finance options, especially if you have a less-than-* perfect credit score.
  • It may not be the best option if you want to borrow only a small sum of money.
  • There is a limit to how much you can borrow.
  • Missed repayments will harm your credit score.

How can I compare loans?

Our loan comparison table highlights key pieces of information about different loans, which can help you to work out what the best personal loan is for you. Some of the main points you need to consider when choosing a loan are:

  • How much you can borrow from a lender.
  • The minimum and maximum number of months you have to repay.
  • If there are any early repayment charges or any other fees.
  • The APR (annual percentage rate).

Most of these are fairly straightforward, but APR can be more complicated to understand.

The APR tells you the total cost of the loan over a year, taking into account the interest on the loan and any compulsory fees.

All lenders have to show a loan’s APR to help consumers compare loans on a like-for-like basis, and to reduce the risk of someone getting caught out by hidden fees.

The APR makes it easier to compare and find the cheapest loans, as you don’t need to work out how different interest rates and lender fees will affect the overall cost of your loan.

What do I need to know before applying for a loan?

Before you get a loan, you need to make sure you understand all the risks involved. You could harm your credit score if a lender rejects your loan application or if you don’t make repayments on time, so only apply for loans if you are confident that you will be successful and that you can comfortably afford the repayments.

Some loan providers will allow you to check your eligibility for a loan without affecting your credit history.

Also think carefully about how much you need to borrow and how long to borrow for.

If you choose to repay the loan over a longer term, your monthly repayments may be smaller but you will pay more in total because of the added interest that will build up. If you choose a shorter term, you will pay less interest overall.

» MORE: Tips for applying for a personal loan

Loan FAQs

What does representative APR mean?

Compared to the annual percentage rate (APR), which tells you the overall cost of a loan with fees and interest, representative APR is provided by lenders to show the APR that they expect at least 51% of successful loan applicants to get. It doesn’t mean that you will get this rate.

Lenders will set interest rates based on your own situation, and 49% of borrowers may get a higher rate than the advertised representative APR.

How can I get a cheap loan?

A cheap personal loan – in other words, a loan with a low interest rate and low fees – will be easier to get if you have a good credit score. The best loan rates are reserved for applicants with excellent credit scores, so working to improve your credit score before applying can help you to get a cheaper loan.

Repaying a loan over a shorter period of time can also make it cheaper, as you pay less interest overall.

Who can get a loan?

UK residents over the age of 18 can get a loan, although lenders may set a higher minimum age and may set a maximum age limit too. Beyond this, lenders will have their own lending criteria, such as a minimum income requirement, and will carry out their own credit and affordability checks to decide whether to approve a loan.

There are many different loans available so, even if you don’t qualify for one loan, you may be able to get a loan elsewhere.

How much can I borrow with a personal loan?

This will vary between lenders and will depend on your credit score, among other factors, but most unsecured personal loans will range from £1,000 to £25,000. If you want to borrow more, you are likely to need to get a secured loan.

How long can I borrow a personal loan?

Personal loan repayment terms typically range from one to seven years, but this can differ across providers.

Do I have to give a reason for a personal loan?

Some lenders may ask you what you intend to use the loan for, but not all. If you are asked, you should always be honest and say why you need the money. If a lender finds out that you have lied on your application, you may have to repay the loan and you could harm your chances of getting credit in the future.

What information do I need to give when applying for a loan?

When you apply for a loan, you will need to give the lender some key personal information including your name, your employment status, your current address and possibly some of your previous addresses. You will also need to provide some financial information, including your income, which the lender will use along with your credit score to make a decision on your application.

How can I check if I am eligible for a loan?

Some loan providers offer eligibility checkers which you can use to see if you could be accepted for a loan, without affecting your credit score. In the comparison table above, you can see if you qualify for certain loans by clicking the “Check Eligibility” button.

Will applying for a loan affect my credit score?

Yes, when you apply for a loan, lenders will conduct a “hard credit check” which will leave a mark on your credit history. If you are rejected, this will harm your credit score. If you are accepted and make all your repayments on time, this will eventually improve your credit score.

Only apply for loans if you are confident you will be accepted. Checking your eligibility before applying can tell you if you qualify for a loan, without affecting your credit score.

Do I need a good credit score to get a personal loan?

A good credit score will make it easier to get a personal loan and get the best interest rates. You may be able to get a loan with a poorer credit score, but the interest is likely to be higher. There are several options that can help people who have poor credit access finance, including bad credit loans, guarantor loans, or secured loans, although you should research these alternatives and check your eligibility before applying.

» MORE: Find loans for bad credit

Are there any alternatives to a personal loan?

A personal loan may not be the best option for every person or situation. Some alternative sources of credit include overdrafts, credit cards, car finance, and secured loans.

Can I cancel my personal loan?

If your loan is covered by the Consumer Credit Act, which most personal loans are, you have the right to cancel within 14 days. You will then have 30 days to repay any money you have received.

If you want to cancel after this period and repay some or all of the loan early, you should contact your lender. You may need to pay early repayment charges to settle a loan before the end of the agreed term.

About the author:

Rhiannon is a financial writer for NerdWallet, with a particular interest in personal finance and insurance guides for consumers. Read more

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