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Best Loan Rates for Personal Loans

Personal loans allow you to borrow money relatively quickly to pay for home improvements, emergency repairs, a car or any other expenses. You then need to repay the loan, plus interest, in fixed monthly instalments until you clear your balance.

If you’re looking for a low-interest personal loan, you can compare personal loan rates on our charts below to help you find the best option for your requirements.

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Personal Loans

Personal Loans

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<p>We found <strong>35 PRODUCTS </strong>in total, of which <strong>8 have links to providers</strong></p>

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Selecting ‘Provider Links First’ brings all products that you can apply for directly via Moneyfacts to the top of the chart in rate order. Products that do not have an ‘Go To Provider's Site’ button will appear below, again in rate order. Selecting an option from the drop-down will change the chart to list all products in order depending on the option you have selected, with the best rate being at the top. Products that have ‘Go To Provider's Site’ links will still be in the list but in rate position. Selecting ‘Favourites First’ will bring your chosen products to the top of the chart in rate order with those with Provider Links shown first.

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  • M&S Bank Personal Loan
    Monthly Repayment
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    £154.75
    Cost of Credit
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    £571.00
    Total Repayable
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    £5,571.00
    Representative APR
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    7.4%
    Additional Info
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    Applicants must be aged 18 or over with a minimum annual income of £10,000
    Go To Provider's Site
    Representative Example: Based on a loan of £5,000 at 7.40% per annum fixed. Representative 7.4% APR. Total amount repayable £5,571.00 at £154.75 per month for 36 months.
  • Novuna Personal Finance Novuna Personal Loan
    Monthly Repayment
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    £155.61
    Cost of Credit
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    £601.96
    Total Repayable
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    £5,601.96
    Representative APR
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    7.8%
    Additional Info
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    Part of Mitsubishi HC Capital UK PLC
    Go To Provider's Site
    Representative Example: Based on a loan of £5,000 at 7.80% per annum fixed. Representative 7.8% APR. Total amount repayable £5,601.96 at £155.61 per month for 36 months.
  • NatWest Existing Customer Personal Loan
    Monthly Repayment
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    £160.11
    Cost of Credit
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    £763.96
    Total Repayable
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    £5,763.96
    Representative APR
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    9.9%
    Additional Info
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    Rates for existing current account customers (held for 3 months +)
    Go To Provider's Site
    Representative Example: Based on a loan of £5,000 at 9.90% per annum fixed. Representative 9.9% APR. Total amount repayable £5,763.96 at £160.11 per month for 36 months.
  • Royal Bank of Scotland Existing Customer Personal Loan
    Monthly Repayment
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    £160.11
    Cost of Credit
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    £763.96
    Total Repayable
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    £5,763.96
    Representative APR
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    9.9%
    Additional Info
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    Rates for existing current account customers (held for 3 months +)
    Go To Provider's Site
    Representative Example: Based on a loan of £5,000 at 9.90% per annum fixed. Representative 9.9% APR. Total amount repayable £5,763.96 at £160.11 per month for 36 months.
  • Admiral Personal Loan
    Monthly Repayment
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    £170.82
    Cost of Credit
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    £1,149.52
    Total Repayable
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    £6,149.52
    Representative APR
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    14.9%
    Additional Info
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    Real rate quote available without affecting your credit score
    Go To Provider's Site
    Representative Example: Based on a loan of £5,000 at 14.90% per annum fixed. Representative 14.9% APR. Total amount repayable £6,149.52 at £170.82 per month for 36 months.
  • Bamboo Personal Loan
    Monthly Repayment
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    £243.57
    Cost of Credit
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    £3,768.52
    Total Repayable
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    £8,768.52
    Representative APR
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    49.7%
    Additional Info
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    Available to all credit rating customers.
    Check Eligibility
    Representative Example: Based on a loan of £5,000 at 49.70% per annum fixed. Representative 49.7% APR. Total amount repayable £8,768.52 at £243.57 per month for 36 months.
  • 118 118 Money Personal Loan
    Monthly Repayment
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    £243.98
    Cost of Credit
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    £3,783.28
    Total Repayable
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    £8,783.28
    Representative APR
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    49.9%
    Additional Info
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    Available to customers with a fair credit rating
    Check Eligibility
    Representative Example: Based on a loan of £5,000 at 49.90% per annum fixed. Representative 49.9% APR. Total amount repayable £8,783.28 at £243.98 per month for 36 months.
  • Everyday Loans Personal Loan
    Monthly Repayment
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    £339.61
    Cost of Credit
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    £7,225.96
    Total Repayable
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    £12,225.96
    Representative APR
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    99.9%
    Additional Info
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    Available to all credit rating customers.
    Check Eligibility
    Representative Example: Based on a loan of £5,000 at 99.90% per annum fixed. Representative 99.9% APR. Total amount repayable £12,225.96 at £339.61 per month for 36 months.
  • Danske Bank Home Owners Personal Loan
    Monthly Repayment
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    £154.11
    Cost of Credit
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    £547.96
    Total Repayable
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    £5,547.96
    Representative APR
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    7.1%
    Additional Info
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    Existing Danske Bank mortgage customers only
    Speak To A Broker
    Representative Example: Based on a loan of £5,000 at 7.10% per annum variable. Representative 7.1% APR. Total amount repayable £5,547.96 at £154.11 per month for 36 months.
  • Santander Personal Loan
    Monthly Repayment
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    £154.32
    Cost of Credit
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    £555.52
    Total Repayable
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    £5,555.52
    Representative APR
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    7.2%
    Additional Info
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    Applicants must be aged 21 or over, minimum annual income applicable.
    Speak To A Broker
    Representative Example: Based on a loan of £5,000 at 7.20% per annum fixed. Representative 7.2% APR. Total amount repayable £5,555.52 at £154.32 per month for 36 months.
Note

Moneyfacts.co.uk Limited is an independent credit broker not a lender. We will receive a payment from credit providers where customers link to them from Moneyfactscompare.co.uk. None of these arrangements affects our independence.

Disclaimer

All loans are subject to the applicant’s status. The APR quoted is representative of the interest rate offered to most successful applicants. Depending on your personal circumstances the APR you are offered may be higher, or you may not be offered credit. Fees and rates subject to change without notice. Please check all rates and terms before borrowing.

Provider Links

‘Go To Provider's Site’ links are where we have an arrangement with a provider so you can move directly from our site to theirs to view more information and apply for a product. We also use ‘Speak to A Broker’ links where we have an arrangement with a preferred broker to move you directly to their site. Depending on the arrangement we may receive a modest commission either when you press a 'Go To Provider's Site' or 'Speak To A Broker' button, when you call an advertised number or when you complete an application following a link from our website.

Favourites

By clicking the heart icon next to each product will mark that product as a favourite. A product will be remembered as a favourite until you deselect it or for 14 days (assuming you have functional cookies enabled). There is an option to filter/sort by ‘Favourites First’ which will bring your favourites to the top of the chart.

Moneyfacts Star Ratings

For over 30 years, Moneyfacts Star Ratings have been the badge of quality for the retail financial industry. Every year, impartial Product Experts assess the features of financial products to identify the very best available in the market.

When looking at products a number of factors are taken into consideration. These include how many features a product has and whether it has any additional benefits, optional extras or add-ons that make it stand out from the rest of the products on the market.

How do we decide which unsecured personal loans get the highest ratings?

The Moneyfacts Star Ratings for Unsecured Personal Loans are based on the weighting of specific product features, that are likely to be the most relevant to those looking to take out an Unsecured Personal Loan agreement.

A considerable number of features will add to the final score, and some of this information includes:

  • Footprint free quote
  • Instant decision
  • Application methods
  • Early repayment charge
  • Deferment periods
  • Minimum and maximum advances
  • Minimum and maximum terms
  • Payment methods
  • Overpayments without early repayment charge
  • Debt consolidation limit
  • Incentives
  • Joint application
  • Loan top-up options
  • Online statements
  • Payment holidays
  • Risk-based pricing
  • Same day funds
  • Unpaid charges
  • Footprint free quote
  • Instant decision
  • Application methods
  • Early repayment charge
  • Deferment periods
  • Minimum and maximum advances
  • Minimum and maximum terms
  • Payment methods
  • Overpayments without early repayment charge
  • Debt consolidation limit
  • Incentives
  • Joint application
  • Loan top-up options
  • Online statements
  • Payment holidays
  • Risk-based pricing
  • Same day funds
  • Unpaid charges
  • Footprint free quote
  • Instant decision
  • Application methods
  • Early repayment charge
  • Deferment periods
  • Minimum and maximum advances
  • Minimum and maximum terms
  • Payment methods
  • Overpayments without early repayment charge
  • Debt consolidation limit
  • Incentives
  • Joint application
  • Loan top-up options
  • Online statements
  • Payment holidays
  • Risk-based pricing
  • Same day funds
  • Unpaid charges

Personal loans eligibility checker and calculator

Before taking out a loan, you can use our loan calculator to see how much your monthly payments could be, based on the amount you want to borrow and your chosen loan term. You can change these fields, as well as the interest rate, to see how this would affect your monthly repayments and total amount you repay.

Once you have a better understanding of the loan you want, you can check your eligibility. This allows you to see the probability of being accepted for a loan, without affecting your credit score.

You can check your eligibility with Loans Warehouse, our preferred loans broker, to help you find the best personal loan for your situation.

Check eligibility before you apply

Before you apply for a loan, it's important to check your eligibility as loan refusals can indirectly damage your credit score. Interested in quickly checking your eligibility? Click below to learn more with the help of our preferred loans broker, Loans Warehouse. Good and bad credit history accepted. 

What is a personal loan?

A personal loan is a popular form of unsecured borrowing. It allows you to borrow a lump sum and pay it back in fixed monthly instalments, with interest, over an agreed number of months or years.

Because personal loans are unsecured, you don’t need to put forward your home or any other item of value as security, unlike secured loans which require some kind of collateral.

You can usually borrow between £1,000 and £25,000 with a personal loan and repay it over a term of one to seven years. However, depending on the lender and your situation, it may be possible to borrow more or less than this over a shorter or longer period.

There are many reasons why someone may take out a personal loan. Some common uses include to:

  • buy a new car
  • pay for home improvements
  • pay for a wedding or other special event
  • pay for a holiday
  • cover any unexpected expenses, such as emergency repairs
  • consolidate existing debts. Think carefully about the risks before taking out a loan for debt consolidation.

You can’t typically get a loan for investing, gambling, paying for a house deposit or any illegal activities.

How does a personal loan work?

You can apply for most personal loans online, although some lenders may also allow you to apply for a loan via mobile app, in branch or over the phone, if you prefer.

When you apply, you need to provide the lender with your personal details, as well as information about your income, expenditure and employment status, for example. Based on this information, lenders will assess your affordability and run a credit check to decide whether to approve your application.

Your credit and financial history will also influence the interest rate the lender charges.

What is APR?

Lenders will use an annual percentage rate (APR) to show you how much a loan will cost over one year, taking into account the interest rate and any fees charged as standard. The APR can make it easier to compare the total cost of different loans.

Once you’ve applied for a loan and been approved, some lenders may be able to transfer the loan to your bank account within a few hours. Other lenders may take 24 hours or possibly even longer.

You can then spend the loan as you choose, making sure you repay it as specified in your agreement. The monthly payments are usually fixed and include the capital you borrowed as well as the interest charged by the lender.

To avoid accidentally forgetting to make a payment, it can be useful to set up a Direct Debit so the repayments come out of your account automatically each month.

Pros and cons of personal loans

  • You can spread the cost of an expensive purchase over a number of years.
  • It can be a relatively quick way to access money.
  • Most personal loans will have fixed monthly repayments, which can be easier to budget for.
  • They may charge a lower interest rate than credit cards and other forms of credit.
  • Because personal loans aren’t secured, your home isn’t directly at risk if you default.
  • Applying for a loan involves a hard credit check, which will appear on your credit history and could affect your score.
  • You typically need a good credit score to access the most competitive rates.
  • Missing one or more repayments could affect your credit score and may result in more serious consequences, such as legal action.
  • Other forms of credit may be more suitable if you want to borrow a smaller or larger sum.
  • There may be cheaper ways to borrow, such as a 0% credit card, although these alternatives carry their own risks.

Alternatives to a personal loan

Before taking out a personal loan, it’s worth considering if any alternatives may be a cheaper or more suitable option.

  • Credit cards. These may be a cheaper option if you only need to borrow a small sum over a relatively short period, especially if you choose a 0% purchase credit card. However, it’s important to manage a credit card effectively to avoid building up debt.
  • Money transfer credit cards. If you want money paid into your bank account, you could use a specialist money transfer credit card instead. While there are interest-free options available, they could become expensive if you don’t pay off your card.
  • Overdraft. These could be useful for short-term borrowing if you have an interest-free overdraft on your current account. Note that, if you exceed your limit or don’t have an interest-free overdraft, this could be a more expensive way to borrow.
  • Car finance. If you’re planning to use a loan to buy a car, you could consider a type of car finance instead, such as hire purchase (HP) or personal contract purchase (PCP). These forms of car finance are secured against the vehicle.
  • Secured loan. These may be suitable if you need a larger loan. Secured loans may have lower interest rates than unsecured loans but, because they’re secured against your home (or other property), there’s a risk that the lender could repossess this asset if you default on the loan. See more on secured vs unsecured loans.
  • Guarantor loan. If you have a less-than-perfect credit score, a guarantor loan may be able to help you access credit. These loans require you to name a guarantor who is responsible for making the loan repayments if you are unable to.
  • Save up. If you don’t need the money immediately, you could consider saving up the money you need instead taking on debt.
  • Ask family or friends. Depending on your situation, it may be possible to ask your friends and family for a loan. This is likely to be cheaper than going to a lender, but make sure you agree on the terms of the loan (including repayments) and consider how it could affect your relationship. Only borrow from someone you know and trust; be wary of loan sharks.

Personal loan FAQs

Can I use a personal loan for a house deposit?

Most lenders state in their terms and conditions that you can’t use a loan to pay for a house deposit. Mortgage lenders will also want to see where the money for your deposit has come from and, if you’ve borrowed money to pay for it, this could affect your application.

Does a personal loan affect your credit score?

Applying for a personal loan involves a hard credit check which could affect your credit score. Once you have the loan, repaying it as agreed could help to improve your credit score while any late or missed payments could cause it to drop.

Bear in mind that comparing personal loans and checking your eligibility for a loan won’t affect your credit score.

Can you pay off a personal loan early?

If you can afford to, you can usually pay off a personal loan partially or in full before the end of the term. Even though lenders may charge a certain number of days’ interest to clear your balance, you should still save money by paying off your loan early.

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Rhiannon Philps

Content Writer

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