Compare £20,000 loans

£20,000 is near the maximum amount that many banks are prepared to lend without securing the loan against property. Here's how to access the best rates available to you.

Last updated:

Check pre-approved rates

  • Good and bad credit histories accepted
  • Fast funding with no hidden costs
  • One simple form to compare lenders

Whether you’re consolidating debt, improving your home, funding a wedding or making a large purchase, £20,000 can be a life-changing sum. But it’s close to the £25,000 threshold at which many lenders stop issuing loans without security, and so if you’re after an unsecured loan, lenders will want to see a solid track record of responsible borrowing.

Comparison of best £20,000 loans

Table: sorted by representative APR, promoted deals first

Will you be approved?

Check your personalised rates and likelihood of acceptance.
Name Product Total Payable Monthly Repayment Representative APR Link
Hitachi Personal Finance Hitachi Personal Loan
Check eligibility
View details
Representative example: Borrow £10,000.00 over 3 years at a rate of 3.2% p.a. (fixed). Representative APR 3.2% and total payable £10,493.64 in monthly repayments of £291.49.
NatWest Existing Customer Personal Loan (specific eligibility criteria apply)
Go to site
View details
Representative example: Borrow £10,000.00 over 3 years at a rate of 3.4% p.a. (fixed). Representative APR 3.4% and total payable £10,524.24 in monthly repayments of £292.34.
Post Office Money® Personal Loan
Check eligibility
View details
Representative example: Borrow £15,001.00 over 3 years at a rate of 3.1% p.a. (fixed). Representative APR 3.1% and total payable £15,718.32 in monthly repayments of £436.62.
Royal Bank of Scotland Existing Customer Personal Loan (specific eligibility criteria apply)
Go to site
View details
Representative example: Borrow £10,000.00 over 3 years at a rate of 3.4% p.a. (fixed). Representative APR 3.4% and total payable £10,524.24 in monthly repayments of £292.34.
AA Member Loan
Check eligibility
View details
Representative example: Borrow £10,000.00 over 3 years at a rate of 3.0% p.a. (fixed). Representative APR 3.0% and total payable £10,462.68 in monthly repayments of £290.63.
Zopa Personal Loan
Check eligibility
View details
Representative example: Borrow £10,000.00 over 5 years at a rate of 8.8% p.a. (fixed) with an application fee of £240.00. Representative APR 9.9% and total payable £12,602.87 in monthly repayments of £210.05.
Lloyds Bank Existing Customer Personal Loan
View details
Representative example: Borrow £10,000.00 over 3 years at a rate of 3.9% p.a. (fixed). Representative APR 3.9% and total payable £10,601.64 in monthly repayments of £294.49.
Lending Works Personal Loan
Check eligibility
View details
Representative example: Borrow £10,000.00 over 3 years at a rate of 5.8% p.a. (fixed) with an application fee of £0.00. Representative APR 10.0% and total payable £11,543.40 in monthly repayments of £320.65.
M&S Bank Personal Loan
Go to site
View details
Representative example: Borrow £10,000.00 over 3 years at a rate of 2.9% p.a. (fixed). Representative APR 2.9% and total payable £10,447.20 in monthly repayments of £290.20.

Compare up to 4 providers

Please note: You should always refer to your loan agreement for exact repayment amounts as they may vary from our results.

Late repayments can cause you serious money problems. See our debt help guides.

What are my options?

If you have good credit

If you’re looking at borrowing £20,000 and you have a good credit rating, then you may be able to go after the very best rates on the market.

Crucially, you’ll still need to be able to afford the loan that you apply for. You could have the best credit record going, but if you’re unrealistic in the loan that you apply for, your application will be rejected. Spreading your loan over a longer term brings down the monthly repayment figure, making it more affordable, but also pushes up the overall cost of the loan. Aim to find a balance – keeping the overall cost as low as you can, while ensuring the repayment schedule is manageable. If you’ve done your sums and feel that you’d be able to afford the loan you’re applying for, then there’s a strong chance a lender will reach the same conclusion.

Provided you can do this, you’re likely to be able to apply to the majority of lenders and enjoy their most competitive rates. Your current bank may even offer same-day funding to existing customers, although it almost always pays to shop around. With such a sizeable loan, even a small difference in the interest rate can mean big savings – especially if you’re borrowing over a number of years.

Browse bank rates

If you have bad credit

While there are specialist lenders who offer loans to people whose credit history isn’t perfect, it’s tough to find a lender willing to offer £20,000 to a borrower with bad credit.

However, if you’re a homeowner with a mortgage, you could use the equity in you property as security. Having security means that a loan represents lower risk to a lender, which normally in turn means lower rates for the borrower. If you’re spreading the repayment over 15 years, however, then obviously the overall cost of borrowing is likely to higher despite the annual rate being lower. It’s a major commitment (take a moment to read through our secured loans guide) but it could let you access rates below 15%.

Compare secured loan rates

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other loan secured on it.

If you’re self-employed

This is an expanding market which needs to be served by lenders, and as a result, more and more mainstream 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

If it’s for a business

A £20,000 loan taken out for business purposes is different to one taken out for personal use. Lenders often state that their personal loans are not to be used for business purposes. There are a variety of business loans available, and some are even government-backed – which can mean better rates for borrowers.

Compare £20,000 business loans

How to compare £20,000 loans

Here are some of the key factors to consider when comparing £20,000 personal loans:

  • Total amount payable. This is the big one – aim to keep this figure as low as possible while ensuring monthly repayments are within your means.
  • Loan durations. Usually the loan term will be dictated by how much you’re willing/able to pay back each month. By spreading loan repayments over 7 years, for example, you may be able to borrow more because the lower monthly instalments would be deemed more affordable.
  • Eligibility. Don’t apply for a loan until you’ve checked the eligibility criteria.
  • Rates. Rates vary from borrower to borrower, and also within the same loan product – from applicant to applicant. Lenders will normally give you a more accurate quote, plus your likelihood of approval, when you give them a few more details about yourself.
  • Fees. Although set-up/product fees are increasingly rare, it’s worth checking this for the loans that you’re considering.
  • Turnaround time. The time it takes to get funds to your account will vary between lenders. Typically it takes 1-3 days.
  • Early repayment. While lenders will not normally penalise you for paying back some or all of the loan early, that doesn’t necessarily mean that doing so will save you money in interest. Some lenders will charge one or even two months extra interest on any funds you pay early.

Aspects of your application that lenders consider

When applying for finance, you inevitably open yourself up to a degree of financial scrutiny. So what is a would-be lender looking for? Here are some of the main things they’re likely to be interested in:

  • Your reason for borrowing. What you’re using the loan for is without doubt of interest to the lender. Perhaps you’re looking to consolidate your debt or purchase a car, how wise a decision that is will vary based on other financial factors. If you’re considered less of a risk because of responsible borrowing, you’ll be seen as a stronger applicant.
  • Your credit record. Potential APR offers are affected by your credit rating, and you’ll need to be in the “good” range or higher for most lenders. There’s also the possibility of getting a loan for less, however, if your score doesn’t qualify you for the full £20,000.
  • Your income and expenditure. If you’re struggling to afford your existing obligations, or you’re spending like a footballer’s wife, lenders could be put off. Lenders tend to look at your debt-to-income ratio to determine if you’ll be able to make timely repayments.
  • Your employment status. How long have you been with your current employer? How stable a role is it? Lenders are risk-averse, so they’re looking to lend to the safest prospects first.

£20,000 loan illustrations

Interest rate of 5.0% fixed p.a.Interest rate of 10.0% fixed p.a.Interest rate of 15.0% fixed p.a.
5 year term£377.42 monthly
£22,645.48 overall
£424.94 monthly
£25,496.45 overall
£475.80 monthly,
£28,547.92 overall
7 year term£282.68 monthly
£23,744.97 overall
£332.02 monthly
£27,889.99 overall
£385.94 monthly,
£32,418.55 overall
10 year term£212.13 monthly
£25,455.72 overall
£264.30 monthly
£31,716.18 overall
£322.67 monthly,
£38,720.39 overall

Will you be approved?

Check your personalised rates and likelihood of acceptance.

We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.

Was this content helpful to you? No  Yes

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site