Compare Unsecured £25,000 Loans

Compare interest rates and term lengths for £25,000 unsecured personal loans. Check your eligibility* without impacting your credit score.

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Information written by Holly Bennett Last updated on 23 May 2022.

What type of £25,000 loan can I get?

£25,000 unsecured or secured loans are available from different types of lenders, including high street, challenger banks, peer to peer lenders and credit unions.

Unsecured loans are personal loans where you don’t need to use an asset as security. This might be useful if you aren’t a homeowner, or if you’d just rather not put your assets at risk. You pay the loan back, usually at a set rate of interest, in monthly instalments over a specific period of time. If you can’t repay the loan, your credit history will be affected and it could lead to the lender taking court action.

A secured loan is where you use a high-value asset, usually a home, as security for borrowing. Secured loans are usually available for higher loan amounts than unsecured loans and often offer lower interest rates. If you are unable to meet repayments, the lender may repossess that asset to recover the money owed. This lowers the risk for lenders, but puts your home or other asset at risk of repossession if you default on payments.

» COMPARE: Personal loans

Is it hard to get a £25,000 unsecured loan?

A £25,000 loan is usually the largest amount lenders will offer without security. This means that an unsecured loan for £25,000 may be harder to get than a loan for a smaller amount.

Lenders will look at your credit score and your finances before deciding if they will lend to you. With no collateral used for the loan, the lender will look at your credit history and current outgoings to assess the risk of lending to you and the likelihood you’ll meet repayments. Unsecured loans pose a higher risk to lenders than secured loans, so you usually pay higher rates of interest and will need to have a good credit score.

It is possible to get a loan with a bad credit history, but you may find that some lenders won’t offer as much as £25,000 to you without security. However, there are specialist lenders who will lend to borrowers with a bad credit history.

» MORE: Learn more about secured and unsecured loans

How do I get a £25,000 loan with bad credit?

If you have a bad credit score, it will usually be harder to get an unsecured loan. This may especially be the case if you’re applying for the maximum amount. Some lenders also require that you haven’t had a county court judgment (CCJ) or been in bankruptcy for a specific number of years.

However, some lenders specialise in offering loans to people who have a poor credit score or a limited credit history. This can include secured loans, guarantor loans, bad credit unsecured loans and debt consolidation loans. Taking out a bad credit loan can help improve your credit score by showing you can manage debt, provided you make repayments in full and on time.

When you’re looking for a bad credit loan, check the annual percentage rate (APR), the available loan amount, length of loan terms, and the monthly repayment. You will pay higher interest rates than if you had a good credit history and will usually need to have a regular income and, as with any loan, be able to afford repayments.

» COMPARE: Bad credit loans

How much are the monthly payments on a £25,000 unsecured loan?

The cost of an unsecured loan depends on the interest rate the lender charges and how long your loan term is. The longer you spread the costs over, the lower the repayments will be, but you’ll pay more interest.

You can see how it works with this example, which compares spreading the cost of a £25,000 loan with a fixed annual interest rate of 3.5%, over three different terms:

Loan term Monthly payment Total amount paid Total interest and fees paid
Two years £1,080.07 £25,921.63 £921.63
Five years £454.79 £27,287.62 £2,287.62
10 years £247.21 £29,665.76 £4,665.76

If you use online calculators before applying, you might use the annual percentage rate (APR). This is how much it costs to borrow over one year and includes interest charged and any other fees and charges for most borrowers.

However, if you use the representative APR, it’s important to note that this is an advertised rate which can only be shown by a lender if 51% of applicants will receive this rate. The actual rate you’re charged when you apply can be higher or lower, depending on your credit rating and other factors.

» MORE: Try our personal loan calculator

Can I get a £25,000 unsecured personal loan?

You can apply for a loan in a branch or online, through a mobile app, or through a broker.

If you’re looking to take out a loan for £25,000, you will usually need to be over 18 or 21 and a UK resident with a UK bank account. Check the lender’s criteria, though, as age ranges and criteria can vary.

You may need to have a minimum monthly income and a good credit score, and the repayments must be considered affordable for you.

What are the pros of an unsecured £25,000 loan?

Typically, the advantages of an unsecured loan are:

  • You don’t have to use an asset, such as your home, as security for the loan.
  • You can borrow a large sum of money relatively quickly.
  • You can spread the cost over your chosen period of time.
  • Monthly repayments are usually fixed, so you know what you’re paying each month.
  • You may pay a lower interest rate than you would for other types of lending, such as a credit card, and potentially borrow more.

What are the cons of an unsecured £25,000 loan?

The downsides of an unsecured £25,000 loan are that:

  • You may pay a higher rate of interest than if you took out a secured loan.
  • If you have a poor or limited credit history, you may not be able to access the best interest rates, and may not be eligible to apply with some lenders.
  • You may not be able to borrow as much as £25,000 with some types of personal loan, such as guarantor loans.
  • You may be charged a fee if you want to overpay or repay your loan early.

With any loan, try to only borrow what you need and make sure that the repayments are affordable for you. Using a personal loan calculator can help you estimate what your monthly payments will be.

How much would an unsecured loan for £25,000 cost in fees and interest?

The fees and interest you pay on the loan will depend on the lender, the interest rate you’re charged and the length of time you’re spreading the repayments over. The lender may also apply other charges and fees, such as if you pay off the loan early or an arrangement fee.

A good first step is using a personal loan calculator. This will give you an idea of how much the loan will cost each month before you apply. You can also choose a longer or shorter term to see how the monthly payments stack up, though a longer term will cost you more in interest.

When you see a provider's representative annual percentage rate (APR), it is just that – representative of the interest, fees and charges of at least 51% of borrowers. What the lender sets your rate at may be different, depending on your personal financial circumstances. So use it as a guide only.

It’s important not to borrow more money than you need, even if borrowing more can mean being charged a lower rate of interest. Not meeting loan repayments over the term could cause financial problems later on and affect your credit rating.

How to get a £25,000 unsecured loan

You can go directly to a lender or a broker to ask about a loan, or you can use a comparison site to search a number of lenders and loans in one go.

You can compare loans across providers with our comparison service, in partnership with Monevo. Just fill in how much you’d like to borrow and how long you need to pay it off, and what you want to use the money for. You can do this at the top of this page, or when you click through from an individual provider.

You will also need to provide a few personal and financial details. Monevo will then search a number of banks and lenders to filter the results to loans you’re likely to be eligible for. The search is quick and it’s free, and it won’t affect your credit score, as it’s a soft credit search. If you find a loan that’s right for you from the personalised results and want to go ahead with it, you can start your application.

It’s best not to apply for a number of loans in a short space of time, as this will show in your credit history and could harm your credit score.

How to choose the best £25,000 unsecured loan for me?

You can use our comparison service to help you choose a personal loan. When comparing loans from providers, look at the representative annual percentage rate (APR), as well as how much you can borrow over how long.

While the representative APR may not be the interest rate you are charged, it’s a useful way to compare loans, as it shows the overall cost of your loan without you having to factor in standard fees and charges on top of interest charged.

You may also want to check if the provider offers the flexibility of making overpayments without charging a fee.

Read the eligibility requirements, too. This will help prevent you from applying for a loan you’re not eligible for and affecting your credit record. Getting a quote using our comparison service won’t harm your credit record.

£25,000 Unsecured Loan FAQs

Can I get an unsecured £25,000 loan instantly?

The time it takes the lender to approve an application and release the funds will depend on the lender and how you apply. You may get approval for an unsecured loan just a few minutes after you apply, or it may take a few days.

If the loan is with a bank, already being a customer may speed things up, along with applying online and making sure you supply the correct paperwork.

Once your application has been accepted and you’ve signed the agreement, the funds may be released into your chosen bank account in anything from a couple of hours to a few days.

Avoid rushing into borrowing what is a large amount of money without taking the time to compare lenders. You’ll want to make sure that your monthly payments are affordable and you’re clear about any fees and charges. You may also want to consider the reliability of the lender and what their current customers say about their customer service on review sites.

What credit score do I need for a £25,000 unsecured loan?

To borrow as large an amount as £25,000 unsecured, you will generally need to have a good credit score. Some lenders will accept borrowers with a poor credit score, but you may be charged higher rates of interest and have fewer products to choose between.

You may want to consider improving your credit score before applying for a loan, to access better rates and improve your chances of being accepted.

Can I get a £25,000 loan for my business?

Lenders will usually specify that a personal loan can’t be used for a business. Instead, you may want to consider a business loan. If your business is new or ready to launch, a startup business loan is a personal loan that, in some cases, is government-backed and available up to £25,000.

How do I pay off a £25,000 loan?

You will usually pay a loan monthly, by direct debit, from your bank account. Personal loans charge a fixed rate of interest, which means repayments are predictable and set up to leave your account automatically for the duration of the loan.

If you want to make overpayments or pay the loan off early, some lenders charge an early repayment fee. This is to make up for the interest they lose when a loan term is cut short. The terms of the loan should make these charges clear, but contact your lender before going ahead with overpayments if you’re unsure. And if this flexibility is important to you, you may want to seek out a lender that doesn’t penalise early repayment.

If you don’t think you can afford repayments at any point during the term of the loan, don’t delay. Contact your lender, who should make efforts to work out a plan that may help you repay the loan in an affordable way. Otherwise, if you don’t get in touch and you miss a few payments, the lender may assume you have defaulted and take action for repayment and missed payments may harm your credit rating.

Can I borrow more than £25,000?

If you are looking to borrow a larger sum than £25,000, you will usually need to take out a secured loan. For the lender, this helps reduce the risk of lending a significant amount of money. However, the risk to you, as the borrower, is that the asset, which might be your home, may be at risk if you can’t make repayments.

It’s important to only borrow what you need, and what you can afford to pay back.

Does a loan of £25,000 hurt my credit score?

Once you have your personalised quotes and have applied directly with the lender, the lender will run a hard credit check. This is a complete search of your credit history and will show on your credit record. While a few factors affect your credit score, it’s important not to apply for a number of loans in a short space of time, as this can make it seem like you’re looking for loans that you may not be able to pay back.

If you meet your loan repayments in full and on time, it will usually have a positive impact on your credit score. That’s because it shows a lender that you’re less of a risk to lend to, as you have a proven history of paying what’s due. So if you have a poor credit score, a loan can actually help improve your score in the long run.

If you are late with repayments or the loan falls into default due to missed payments, it can have a negative impact on your credit score and reduce your chances of being accepted for future credit. A loan default can stay visible on your credit report for as long as six years.

You can help reduce the impact of missed payments by paying what you owe as soon as you can.

Will my interest rate change over the course of my loan?

Unsecured personal loans charge a fixed rate of interest. With a fixed rate of interest, the amount of interest you pay will stay the same each month, for the entirety of the loan. This means predictable monthly payments, which can make budgeting easier.

Is there anything I can’t use the £25,000 loan for?

There are lots of reasons why someone takes out a personal loan. It could be for debt consolidation, to buy a new car, carry out home renovations, or to cover the cost of a wedding.

Even so, there are some uses a lender won’t agree to. This may include using a personal loan for a business, investments and gambling, or buying a property. Always think carefully before going ahead with a loan, and consider other borrowing options that might cost you less. These might include a 0% credit card for small amounts you pay off quickly, a second charge mortgage if you are a homeowner, or using an alternative lender, such as a credit union.

Your ultimate decision should be based on which type of loan meets your needs best and you should consider all the implications of alternative borrowing. For instance, securing debts against your home with a secured loan or the risks associated with using more than you can afford on credit cards.

Could I be refused an unsecured loan for £25,000?

Yes, it’s always possible for a lender to refuse a loan application. This could be for a number of reasons, such as having a poor or limited credit history, not having regular employment, or because the lender doesn’t think that the loan would be affordable for you. Even a mistake on the application form can lead to an unsuccessful application. Or you may just not meet the eligibility requirements.

If you are refused a loan, the first step is to find out why, and what you might be able to do to improve your chances. One way could be to improve your credit score. Though being rejected for a loan doesn’t mean you won’t be able to get another loan elsewhere, avoid applying for a number of loans in a short space of time, as this can harm your credit score.

Can I repay my loan early?

Yes, it’s usually possible to repay a loan early. However, you may need to pay an early repayment fee. This is because you will be cutting your loan term short and reducing the amount of total interest the lender will get.

Check your credit agreement to find out what the early settlement penalty will be before going ahead. The exact amount you will pay will depend on the lender, how much you’ve already paid and how much is left to pay, as well as how long is remaining on the original term.

You may be able to make partial overpayments rather than pay the amount in one go, depending on your loan agreement. There may be a cap on how much these are, and other conditions attached.

If repaying the loan early is important to you, look for lenders that don't charge a penalty.

About the author:

Holly champions clear, jargon-free writing. She’s been creating finance content for leading organisations for over 10 years. Read more

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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.

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Monevo.co.uk is a registered Trading Name of Monevo Limited which is an Appointed Representative of Quint Group Limited, and is entered on the Financial Services Register under reference number: 723672.  Quint Group Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register under reference number: 669450.  Monevo Limited is registered in England and Wales (Company number 06511345). Registered office: Glasshouse, Alderley Park, Nether Alderley, Cheshire,SK10 4ZE.  Licensed by the Information Commissioners Office, (Registration number Z1498441).

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