Lloyds Bank Loans

Find out more about the personal loans offered by Lloyds Bank, including how they work and how much you could potentially borrow.

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What our Nerds say about Lloyds bank loans

Founded in 1765 as Taylors and Lloyds, Lloyds Bank is a well-known high street bank that is part of the Lloyds Banking Group.

Lloyds Bank provides banking services to individuals and businesses across the UK.

The bank offers unsecured loans – also known as personal loans – of between £1,000 and £50,000 to eligible customers. These can be used for a variety of purposes, such as weddings, holidays and home improvements.

Lloyds Bank personal loans

Lloyds Bank loan rates

Interest rates on Lloyds Bank loans are fixed throughout the term, so they won’t change while you’re repaying your loan. Your interest rate is decided using your personal financial circumstances.

Lenders such as Lloyds will advertise a representative annual percentage rate (APR). This includes interest and standard fees or charges that you may have to pay when you borrow.

A representative APR is illustrative and reflects the rate (or lower) that at least 51% of successful applicants will receive. You can use representative APR to compare how much it could cost to borrow from different lenders.

However, the personalised APR you get if you apply could be higher or lower than this. It’s worth bearing in mind that 49% of successful applicants could be offered an APR at a higher rate.

You can log into Lloyds internet banking to get a personalised quote including an interest rate based on your specific circumstances.

Can I get a secured loan from Lloyds Bank?

No, it is not currently possible to get a secured loan from Lloyds.

Secured loans are where the amount you borrow is secured against an asset such as your home. If you fail to make your repayments, the lender can sell this asset to get its money back.

Pros and cons of Lloyds Bank loans

here are a few advantages and disadvantages to bear in mind if you are considering taking a Lloyds bank loan.


  • You can currently borrow between £1,000 and £50,000.
  • Instant decision when applying online.
  • Joint loans are available if you’re eligible.
  • You can make overpayments.


  • You can only apply if you are an existing Lloyds customer.
  • You may be charged up to 58 days’ interest for early settlement.
  • Secured loans are not available.

How do Lloyds Bank loans work?

With a Lloyds unsecured loan, you can borrow between £1,000 and £50,000 and repay this (plus interest) over a fixed term. Loan terms are between one and seven years, agreed when you take out your loan.

You make fixed monthly repayments through direct debit. You can also make extra repayments each month if you choose, though you may have to pay up to 58 days’ extra interest if you repay your whole loan early.

Can I make overpayments on a Lloyds Bank loan?

Yes, you can make overpayments on a Lloyds loan. This may reduce the interest you pay overall and could shorten the term of your loan.

However, overpayments do not replace your monthly repayments. These will still be taken by direct debit on the usual day, so it’s worth considering whether you can afford to overpay.

You can make extra payments online, over the phone, in branches, or by bank transfer.

It’s also possible to pay off your whole loan early. You should contact Lloyds Bank to get a quote for early settlement, so you know how much it will cost you. You could be charged up to 58 days’ interest for early settlement.

Can I borrow more on a Lloyds Bank loan?

Yes, you can borrow more on a Lloyds loan, provided that you have an unsecured loan solely in your name and provided your financial circumstances allow it. You can’t borrow more on a joint loan.

Similarly to when you initially apply for a loan, you must have a Lloyds current account that is at least a month old to be eligible to borrow more.

You can borrow between £1,000 to £50,000 in addition to your existing borrowing, so long as you don’t borrow more than £50,000 in total.

There are two ways to borrow more: replacing your current loan or applying for an additional separate loan.

Replace your current loan

You could take out a new loan that combines your existing loan and the extra amount you want to borrow. You would then have one monthly repayment, and could get a new loan term and interest rate.

Terms could be longer and interest rates higher than on your existing loan. You may also be charged up to 58 days’ interest for settling your existing loan early.

Apply for another loan

You could take out a new, separate loan that is paid back alongside your existing borrowing. Each loan would have its own interest rate, term and monthly repayments.

What can I use a Lloyds Bank loan for?


You can use an unsecured loan to purchase a new or used car and spread the cost. It’s a good idea to have an idea of the make and model, and price of the car you want to buy so that you know how much to borrow.

Bear in mind that it is possible to buy a car using other methods of borrowing, such as personal contract purchase (PCP) or hire purchase. So it’s worth comparing all the options to find the one that best suits your circumstances.

» MORE: Types of car finance explained

Debt consolidation

A debt consolidation loan could help you manage your existing debts by putting all your debt into one place.

With one monthly repayment to budget for, and one fixed date when all your debts will be repaid, this type of loan could help you to take stock of your finances.

However, debt consolidation loans may not be suitable for everyone. You may end up with a higher interest rate and a longer loan term, meaning more interest to pay overall.

Home improvements

You can use a personal loan to help pay for projects around the home, such as redecoration, refits or extensions. This is sometimes referred to as a ‘home improvement loan’.


Sometimes referred to as a ‘wedding loan’, an unsecured loan can help you to pay for the cost of your big day. You may want to spread the cost of things such as outfits and venue hire, for example.


You can get a personal loan to help pay for holiday purchases such as flights and hotels. If you make a budget before you head off, you’ll have an idea of how much you may need to borrow.

You may also be able to spread the cost using a credit card or another way of borrowing.

Restricted uses

You cannot use a Lloyds Bank loan to pay for anything speculative (such as gambling, investments or stocks and shares), illegal, or business-related.

What’s more, using a loan to purchase land or property (including using the funds for a deposit) is prohibited. Timeshares and holiday clubs are also not permitted.

Am I eligible for a Lloyds Bank loan?

To be eligible for a Lloyds loan, you need to:

  • be at least 18 years old
  • live in the UK (excluding the Channel Islands and the Isle of Man)
  • be in paid work or have other regular income
  • have a Lloyds current account that’s at least a month old
  • have a good credit score
  • not have any County Court Judgments (CCJs) or history of bankruptcy

You must also not be a full-time student.

What credit score do I need for a Lloyds Bank loan?

Lloyds states in its eligibility criteria that you should have a ‘good credit score’. There is no specific number given, as loan applications are assessed on your overall personal circumstances, not just your credit score.

That said, you may be more likely to qualify for a loan if you have a good credit history. Likewise, customers with higher credit scores may be able to access better interest rates.

» MORE: What is a credit score?

Can I get a Lloyds Bank loan with bad credit?

You may find it harder to get a loan if you have bad credit. Lloyds Bank asks applicants to have a good credit history with no evidence of CCJs or bankruptcy.

However, some lenders offer loans designed specifically for people with bad credit.

What’s more, there are ways to improve your credit score. For example, making sure you’re registered to vote at your current address, and making regular payments on time, every time can improve your rating over time.

» COMPARE: Bad credit loans

Can I get a joint loan from Lloyds Bank?

Yes, it is possible to get a joint loan from Lloyds.

Both borrowers need to have had a Lloyds current account for at least a month before applying. In addition, both people need to:

  • be over 18 years old
  • live in the UK
  • not be a full-time student
  • not have a bad credit history
  • not have had a credit application rejected in the past month

For more details and to apply for a joint loan, you can call Lloyds Bank.

How to apply for a loan from Lloyds Bank

Existing Lloyds customers can get an instant quote through Internet Banking. This will show how much a loan could cost you, as well as the likelihood of you being approved.

If you choose to move forward with a loan after receiving this quote, you can apply online. You should receive an instant decision.

It is also possible to apply in a branch or over the phone.

How long does it take to get a Lloyds Bank loan?

If you apply, you could get your money immediately if you’re approved between 9am and 8:30pm.

If your application is approved outside these times, you can expect your money to reach your account by 9am the next working day.

Lloyds Bank customer reviews

On the ratings site Trustpilot, Lloyds Bank has a score of 1.5 out of 5, based on over 3,000 reviews. Reviews on this website are about all its banking services, not just unsecured loans.

Likewise, reviews of the Lloyds Bank mobile app are from all users, not just borrowers.

On Google Play, the app has 4.3 stars out of 5, based on over 272,000 reviews.

On the Apple App Store, the app scores 4.8 out of 5, based on over 1.5 million reviews.

This information was correct as of 30 September 2022.

Lloyds Bank Loan FAQs

Can you borrow money from Lloyds Bank?

Yes, the Post Office offers unsecured loans of between £1,000 and £25,000. Yes, Lloyds Bank offers personal loans of between £1,000 and £50,000 to existing current account holders. You can also get a joint loan from Lloyds.

Do I need a Lloyds bank account to get a Lloyds Bank loan?

Lloyds Bank requires you to have had its current account for at least one month before you can apply for a Lloyds loan.

About the author

Kristina Fox
Kristina is a writer at NerdWallet. A recent graduate trading French for finance, she has experience creating content for student newspaper Cherwell and an edtech company. Read more