How to get a £25,000 personal loan with the best rate

Use our online calculator to compare 25k loans, maximise your chances of loan application approval and secure a competitive interest rate.

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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.

Monthly payments on a £25,000 bank loan

Table: sorted by representative APR, promoted deals first

Use the table below to estimate the monthly and overall cost of your loan from a range of popular lenders.

Name Product Total Payable Monthly Repayment Representative APR Link
Lending Works Personal Loan
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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.
Royal Bank of Scotland Existing Customer Personal Loan (specific eligibility criteria apply)
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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.
Hitachi Personal Finance Hitachi Personal Loan
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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.
Zopa Personal Loan
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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.
Post Office Money® Personal Loan
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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.
AA Member Loan
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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.
NatWest Existing Customer Personal Loan (specific eligibility criteria apply)
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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.
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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.

Can I get a £25,000 loan?

Realistically, borrowing £25,000 without security is highly-likely to require a good credit score. While personal loans are available from both traditional and more specialised lenders, and come in a variety of forms: secured, unsecured, short-term, long-term etc., £25,000 is definitely at the upper end of the unsecured lending spectrum. The first step to taking out the right loan for your needs is to understand your options.

Can I borrow £25,000 with good credit?

You’ll most probably have more options available to you if you’re looking at borrowing £25,000 and you have a good credit rating. You’re likely to be able to apply to the majority of lenders, but to get approved and enjoy the most competitive rates you’ll need to prove that the loan is affordable. Your current bank may offer larger sums and faster funding to existing customers, though it usually pays to shop around if you can.

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Can I get a £25,000 loan with bad credit?

To get a £25,000 loan with bad credit, you’ll need to provide security – in other words, you’ll need to be a homeowner with a mortgage, and willing to use the equity in your property as security. You may choose to simply remortgage or you may opt to take out a “second-charge mortgage”, so that your first mortgage isn’t affected.

Having security means that a loan represents lower risk to a lender, which normally in turn means lower rates for the borrower (plus a stronger chance of getting approved). Just bear in mind that if you opt to spread repayment over, say, 25 years, however, then obviously the overall cost of borrowing will be much higher than borrowing over, say 10 years. It’s a big commitment, so take a moment to read through these guides:

£25,000 homeowner loans

Table: sorted by overall cost for comparison (representative APRC)
Data indicated here is updated regularly
Name Product Maximum LTV Loan amounts Loan terms Overall cost for comparison
Paragon Personal Finance Prime Rate Secured Loan
75%
£20,000 to £250,000
5 to 25 years
4.3% APRC
Evolution Adverse Secured Loan
65%
£10,000 to £500,000
3 to 25 years
4.5% APRC
Paragon Personal Finance Prime Rate Secured Loan
75%
£20,000 to £250,000
5 to 25 years
4.5% APRC
Evolution Adverse Secured Loan
70%
£10,000 to £500,000
3 to 25 years
4.6% APRC
Masthaven Bank Flexible Secured Loan
70%
£10,000 to £150,000
3 to 35 years
4.9% APRC
Optimum Credit Prime Rate Secured Loan
50%
£7,500 to £200,000
3 to 30 years
5.1% APRC
Evolution Adverse Secured Loan
75%
£10,000 to £200,000
3 to 25 years
5.2% APRC
Masthaven Bank Flexible Secured Loan
70%
£10,000 to £150,000
3 to 35 years
5.4% APRC
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Overall representative example
If you borrowed £38,500 over a 15-year term at 8.93% p.a. (variable), you would make 180 monthly payments of £437.83 and pay £78,809.40 overall, which includes interest of £35,464.40, a broker fee of £3,850.00 and a lender fee of £995.00. The overall cost for comparison is 11.6% APRC representative.

How much is the monthly payment on a £25,000 loan?

This will depend on the interest rate you receive and the length of your loan term. For example, a £25k loan with a 10-year term and 5% fixed rate could have a monthly repayment of £265.16. In comparison, a £25,000 loan with a 5-year term and 10% fixed rate could cost £531.18 per month. You can calculate the cost of your £25k loan here.

5% p.a. interest10% p.a. interest15% p.a. interest
3-year term£749£807£867
5-year term£472£531£595
7-year term£353£415£482

How much is a £25,000 loan over…

5% p.a. interest10% p.a. interest15% p.a. interest
3 years£26,974£29,040£31,199
5 years£28,307£31,871£35,685
7 years£29,681£34,863£40,523

The loan examples above are calculated using a flat fixed rate and are only approximate, rounded figures. Your specific loan payments may be higher or lower depending on factors like your repayment schedule, loan term and potential fees.

Can I borrow £25,000 for a business?

Taking out a £25,000 loan for business purposes is different to doing the same for personal use. Often lenders specifically state that their loans cannot be used for a business. However, business loans are available, with some receiving government backing, which can lead to lower rates.

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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.

Frequently asked questions

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