Compare £10,000 personal loans

What is the monthly payment on a £10,000 loan?

This will depend on the length of your loan, and the interest rate you receive. For example, a £10,000 loan that has a fixed rate of 10% p.a. over 5 years, your monthly payment will be £212.47. In comparison, with a £10k loan offering a fixed rate of 5% p.a. and a 1 year term, you’ll pay £856.07 each month. You can calculate the cost of a £10,000 loan here.

Borrowing over a longer term can bring your monthly repayments down to more affordable levels but it also pushes up the overall cost of the loan, making it important that you secure a competitive rate.

Whether you’re buying a car, consolidating debt or planning your wedding, here are some examples of £10,000 loans at varying rates and loan terms.

What is each repayment made up of?

Here’s an example of a £10,000 loan at a fixed rate of 8% over three years, with no fees involved. You can see that early repayments contain a larger proportion of interest, and at first, you chip away at the capital relatively slowly. By contrast, towards the end of the loan, each repayment goes almost entirely towards clearing capital.

Each bar represents an individual repayment – you can click to get a closer look at what’s going on in that month’s repayment.

Here’s the same loan repaid over five years (in other words 60 monthly repayments). The individual repayments are more manageable, at £201 rather than £312, but the amount of interest overall, is significantly higher: £2,085 rather than £1,235. Again, you can click on a repayment to get a closer look at what’s going on in that month.

How much will a £10,000 loan cost overall?

The example loans below use approximate figures based on a flat interest rate.

So how does my credit score affect things?

If you’re looking at borrowing £10,000 and you’re in the minority of people who know they have excellent credit and, crucially, the loan you’re interested in would be comfortably affordable, then you might opt to go straight to a traditional lender such as a bank, supermarket or building society and enjoy those super competitive rates. You may also find that your current bank offers same day funding to existing customers (although it usually pays to shop around). You could even opt for a credit card, although getting a £10,000 credit limit is far from guaranteed.

For everybody else, you’ll want to be upfront about your credit history so that you don’t waste your own time and to avoid disappointment. It’s not possible to borrow £10,000 without a credit check (at least not from a legitimate lender).

But don’t credit checks hurt my credit score?

A “hard” credit search will have a small and usually short lived negative effect on your credit score, while a “soft” credit search won’t have any effect whatsoever on your credit score. Many lenders can run a soft search before you apply, to give you a clear idea as to whether or not you’d get approved, and in some cases can use this search to give you a more accurate idea of the rate you’d be offered.

It’s when you formally decide to go ahead and apply for a loan that you’ll always undergo a hard credit search. It’s perfectly normal to undergo a few hard credit searches from time to time, but because of that slight effect on your credit score, and because each hard search will be visible on your credit file, you want to keep hard searches to a minimum, and you should only agree to one when you’re fairly sure that you are going to take credit from that lender.

The good news is that a decent loan matching service can allow you to run soft searches with multiple lenders in one go – saving you a whole lot of time and meaning that you can compare the rates you’d actually get rather than those often-unhelpful advertised representative APRs. You’ll need to provide a relatively small amount of info about yourself – from basic details about your name, address and date of birth which allow the service to find your credit file, plus some info about your income and outgoings which lenders use to assess affordability.

Could I get a cheaper £10,000 loan with security?

A secured loan is when you put forward an asset as security for the lender. Typically, it’s the equity in your home. The lenders can see this as less of a risk because if the worst comes to the worst and you default on the loan, they’ll be able to sell the asset to recoup their losses.

By reducing the risk to the lender, you may be able to boost your chances of getting your application across the line, and, if you have bad credit, you’re likely to be able to access lower APRs than you would otherwise.

Loans secured against your home are also known as “second charge mortgages” or “homeowner loans”, and are a popular choice for debt consolidation. However a secured loan should only be entered into after extremely careful thought, because ultimately you’re putting your home on the line.

£10,000 is about the smallest amount available through a homeowner loan, and it’s important to bear in mind that substantial fees are typically involved with secured lending. Nonetheless, if you have bad credit but equity in your home, opting for a secured loan could well be the cheapest option

Unsecured £10,000 loans

An unsecured loan is money you borrow without putting any property up against the loan as collateral. Many lenders offer unsecured loans of up to £25,000.

Crucially, even if you take out an unsecured loan, your assets may still be at risk if you fail to make payments. Your lender can refer the case to debt collecting agencies, who have the authority to seize property from you to offset the debt.

Find out more about homeowner loans

Could I get a cheaper £10,000 loan with a guarantor?

If you’re looking to borrow £10,000 and your credit rating is preventing you from getting a traditional personal loan, then a guarantor loan could be worth considering.

A £10,000 guarantor loan will realistically be an expensive option however – with rates exceeding 35% annually. As such it’s not a decision to be taken lightly. Nonetheless, in certain situations, applying with a guarantor could be the difference that allows you to get approved for a £10,000 loan, or it could help you access lower (but still high) rates.

£10,000 is towards the upper limit of what you can borrow with a guarantor loan. That means that your guarantor will need to have an excellent credit score. It’ll also help if they own their own home. Most importantly, they’ll have to be willing and able to make payments on your loan if you can’t.

For a £10,000 loan, many borrowers would require a longer loan term to keep the monthly payments affordable. Guarantor lenders usually offer up to five years to pay off the £10,000 plus interest and any fees. Over a five-year loan, your monthly repayments would come in at more than £300, so it’s important to be realistic about what’s affordable. Broadly speaking, shorter loans are cheaper, but come with higher instalments, while longer loans are more affordable month-to-month but cost you more overall.

Comparison of £10,000 guarantor loans

• Guarantor loans
• Guarantor loans (guarantor is homeowner)

1 - 1 of 1

How much do you need to borrow? £

10000

How long do you need to borrow for?

3

years

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Name	Product	Ratings	Customer rating	Finder score	Total Payable	Monthly Repayment	Representative APR	Link
1plus1 Loans Guarantor Loan		Finder score ★★★★★	Not yet rated	★★★★★ Expert analysis				Check eligibility View details	Representative example: Borrow £10,000.00 over 3 years at a rate of 47.8% p.a. (fixed). Representative APR 47.8% and total payable £17,259.12 in monthly repayments of £479.42.	Compare	loading Fetching your data...

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1 - 1 of 1

How much do you need to borrow? £

10000

How long do you need to borrow for?

3

years

Sort by:

Name	Product	Ratings	Customer rating	Finder score	Total Payable	Monthly Repayment	Representative APR	Link
Norwich Trust Limited Unsecured Homeowner Loan		Finder score ★★★★★	Not yet rated	★★★★★ Expert analysis				View details	Representative example: Borrow £15,000.00 over 3 years at a rate of 27.9% p.a. (fixed). Representative APR 27.9% and total payable £21,430.80 in monthly repayments of £595.30.	Compare	loading Fetching your data...

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How to get approved for a £10,000 guarantor loan

Most lenders try to process your application and give you a decision within 24 hours. However, there are factors which can delay the application, or even result in it being rejected. If you and your guarantor take care to be accurate and truthful in your application, you’re more likely to be approved faster.

• Make sure you’re realistic about what you can afford. The average £10,000 guarantor loan involves monthly payments over £325. Are you sure you can pay this amount? Does your guarantor realise how much they would be expected to pay if you missed a payment?
• Be accurate and honest in your application form. You and your guarantor must be honest with each other about your financial situations. Double check the application form for errors to avoid delays.
• Check the minimum eligibility criteria. Make sure both you and your guarantor fulfil the separate criteria, such as minimum age and credit rating, and that you don’t have shared finances, such as a joint bank account or a mortgage.
• Choose your guarantor carefully. Do they have the right credentials to appeal to a lender? The better your guarantor’s credit score, the better chance of getting your loan quickly.
• Prep your guarantor. It’s a big responsibility for your guarantor, so they need to be fully aware of what they’re taking on. They also need to be on hand to complete their part of any online forms and, if necessary, available to speak with the lender over the phone. It’s the guarantor who actually receives the funds from the lender, so you’ll need them to transfer the funds to you.
• Be available. Both you and your guarantor need to be able to take a phone call from the lender or to respond to emails during the approval process.

Compare guarantor loans

Loans for a business

A £10,000 loan taken out for business purposes is different from one taken out for personal use. Lenders often stipulate that their personal loans are not to be used for business purposes. Businesses also have access to a range of different finance products that might not be available to consumers. There are a variety of business loans available, and some are even government backed – which can mean better rates for borrowers.

Compare £10,000 business loans

Can I get a £10,000 loan if I’m self-employed?

Most lenders will consider applications from self employed individuals. Lenders realise that this is an expanding market which needs to be served, and as a result, more lenders are offering loans to self-employed applicants. Whatever stage you’re at, if you know your options and how best to go about applying, you’ll have a better chance of having your loan approved.

Compare loans for the self-employed