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This guide will enable you to compare £2,000 loans in the UK. Not only have we compared the best £2,000 loans available in the market, we’ve created a number of tools and calculators to help you check if the loan is right for you as well as your eligibility. Use our LoanFinder tool which gives you a much more personalised experience and gives a more specific answer as to the likelihood of your loan application being accepted.
You can also use our loan calculator to select the loan amount and how long you’d like the repayment period to be. The rates in our table will update automatically to reflect your choices.
(In this case, when we refer to loans we’re specifically referring to personal loans of £2,000.)
Late repayments can cause you serious money problems. See our debt help guides.
By personal loan standards, a £2,000 loan isn’t huge, but the range of interest rates lenders offer on these loans is. That means it’s important to make sure you only apply for loans offering the most competitive rates available to you, and which you’re confident you’ll get approved for.
Frustratingly, some of the big high-street banks aren’t interested in £2,000 loans, and as such, reserve their most competitive rates for larger loans that they deem worth the admin. To identify the cheapest way to borrow £2,000, you should also consider alternative options such as a credit card.
There are a number of things to keep in mind when comparing your £2,000 loan options:
Here are some of the key factors you’ll want to consider when shopping around for the right personal loan:
Borrowing for longer usually brings monthly repayments down to more affordable levels. However it also pushes up the total cost of borrowing, making it important to secure a competitive rate. Here are some examples of £2,000 loans at varying rates and loan durations.
|Interest rate of 5.0% fixed p.a.||Interest rate of 10.0% fixed p.a.||Interest rate of 25.0% fixed p.a.|
|1 year term||£171.21 monthly,|
|2 year term||£87.74 monthly,|
|3 year term||£59.94 monthly,|
Usually, you’ll make monthly payments on or just after your payday, by direct debit. With a fixed-rate loan, you’ll pay the same amount every month, and you’ll know in advance what the loan is going to cost you overall.
Below is an example of a £2,000 loan over 2 years at a fixed rate of 12%. Each bar represents a £93.58 monthly payment, and you can click/hover to see details of each. At the start of the loan, a sizeable proportion of the monthly repayment is servicing the interest that has accrued, while towards the end of the loan very little interest is accruing.
There are obviously a few different way to get your hands on £2,000 – you could borrow from a friend or family member, for example, or even sell assets.
Getting a credit card normally takes a little longer (typically 2-3 weeks) than a personal loan (typically 1-3 days), and can be harder to get approved for. They’re also an ongoing, flexible form of credit, with low minimum monthly repayments – so they require self-discipline if you actually want to clear debt without it costing you the earth. However, the good news is that many cards come with long 0% interest periods on purchases or balance transfers, so, if you’re organised and you can get approved for one, they can be a smart way to borrow. With a credit card, you’ll normally only pay interest for the money you spend, from the day you spend it, as opposed to having to decide a lump sum to borrow upfront.
You could also consider talking to your bank about extending your arranged overdraft. Realistically, this will normally only work out cheaper if you can repay the money very quickly. If your bank’s happy to do so, this is likely to be a speedy option and you should only have to pay interest for the days on which you use the overdraft. Your bank should be able to give you a clear idea of costs, which you can compare against a personal loan. If you’re not happy with the deal they offer you, you may decide to switch your current account to another financial institution with a better deal.
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