Considering a Lloyd's Bank loan? With funding within 24 hours and no charges when overpaying, Lloyds offers fast and flexible loans. However, this loan is only available to existing customers, if you don't have a Lloyds bank account, you can find alternative options below. Lloyds also charges 58 days of interest if you repay your loan in full early. Overall, it might be solid choice for existing Lloyd's Bank customers with good credit who want flexibility, quick access to funds.
Best for: Fast lending
Pros
Competitive rates
Same day funding facility
Make overpayments
Cons
Existing customers only
Early loan repayment incurs 58 days’ interest charge
Representative example: Borrow £10,000.00 over 3 years at a rate of 6.7% p.a. (fixed). Representative APR 6.7% and total payable £11,034.00 in monthly repayments of £306.50.
★★★★★
Finder score
Maximum loan
£50,000
Product fee
N/A
Early redemption fee
Yes
Calculate the cost of a Lloyds Bank loan
How do Lloyds Bank personal loans compare against the competition’s?
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 is Lloyds Bank?
Lloyds bank plc is a retail and commercial bank founded in Birmingham 1765, considered one of the “big four” banks in the UK. You can apply for a personal loan from Lloyds online, in branch or over the phone.
If you’re looking to buy a new car, consolidate debt, refurbish the kitchen, or take that desperately needed holiday, Lloyds offers a wide range of borrowing options.
Key features of Lloyd’s personal loans
Lloyds offers unsecured personal loans, meaning they’re based on creditworthiness, rather than using property, vehicles and other assets as collateral. The loans are available over a period of 1-7 years for loans between £1,000 and £50,000.
While Lloyds rates are normally competitive, the representative APR may not be the rate you’ll receive: Lloyds will offer you a rate based on an assessment of your personal financial circumstances.
Quick overview of Lloyds Bank personal loans
Loan amounts
From £1,000 to £50,000
Loan terms
From 1 year to 7 years
Age eligibility
18 years and over
Application fee
No application fee
Repayment holiday
Repayment holiday not permitted
All interest rates are fixed for the duration of your repayment period, however the rate you’re offered will depend on factors like the amount you apply for, the term of the loan, your credit rating and your income. It may differ from the advertised “Representative APR”.
What is APR?
If you’re comparing any credit-based products, it won’t be long before you’ll come across the Annual Percentage Rate (APR). This figure is designed to provide an annual summary of the cost of a loan. It takes into account both interest and any mandatory charges to be paid (for example an arrangement fee) over the duration of a loan.
All lenders must calculate the APR of their products in the same way, and must tell you the APR before you sign an agreement, so for consumers it can be a handy tool for comparison.
Bear in mind, however, that lenders are only obliged to award this rate to 51% of those who take out the loan – the other 49% could pay more. That’s why it’s often referred to as the representative APR.
Am I eligible for a Lloyds personal loan?
When applying for a Lloyds personal loan, factors such as your credit history, income and the amount you apply for will be considered. You also need to be certain you can meet the repayment terms. You’ll then also need to meet the following criteria:
You must be aged over 18 years old.
Have a valid form of ID.
You must be a UK resident.
However because Lloyds personal loans are only available to Lloyds current account holders, if that includes you, you may not need to jump through so many hoops!
What credit score do I need to get a Lloyds loan?
Lloyds typically offers loans to applicants with high credit scores. It's important to note that your credit record is just one factor that Lloyds considers. However, if you don't have a high credit score, you're very unlikely to get approved for a Lloyds loan.
A "Good" or "Excellent" credit rating would require a score of 881 or higher if you're referring to Experian's scale, 531 or higher if you're referring to Equifax's scale and 604 or higher if you're referring to TransUnion's scale.
Do Lloyds loans give an instant decision?
Yes, Lloyds offers instant decisions online in most cases. (Occasionally, more information may be required.) First, you can use the soft-search eligibility checker to find out your chances of getting approved. (This won't affect your credit score.) Then, if you opt to go ahead and apply, you'll get an instant answer. Lloyds can also offer same-day funding of your loan.
Can I get a second Lloyds loan?
Yes, Lloyds allows you to have more than one loan running at the same time. Each application for credit will be considered on its own merit. Alternatively, Lloyds also allows you to effectively "top up" your loan by closing your current loan and starting a new, larger loan. There's no penalty for repaying ahead of time, but bear in mind that any overpayments may be subject to up to 2 months of interest beyond the date on which you overpay. Because of this, it may work out cheaper to run a second loan alongside the first, rather than consolidating the 2.
Can I make overpayments on a Lloyds loan?
Yes, you can make overpayments without incurring any penalty fee. However, Lloyds can continue to charge interest for up to 2 months on any sums overpaid. So, although making overpayments stands to save you money in interest, you may not save quite as much as you'd imagined.
How do I apply?
If you’ve decided that a Lloyds personal loan is for you, then you can apply online by logging in to your existing Lloyds bank account and following the loan application process.
Does Lloyds offer debt consolidation loans?
Yes, Lloyds offers personal loans for debt consolidation for up to £35,000. As with a regular Lloyds loan, you’ll need to have good credit, and be an existing Lloyds Bank current account holder. With a Lloyds debt consolidation loan, you’ll also have the option of repayment holidays, additional payments and early repayment.
Lloyds customer reviews
Lloyds Bank has received mostly negative reviews from customers, according to review platform Trustpilot. It currently has a rating of 1.7 out of 5, based on more than 4,300 reviews (updated February 2023). Some customers reported issues getting a loan, as well as poor customer service.
Case study: Jenny took out a Lloyds personal loan to pay off some house renovations
Jenny Williams
St Albans
I needed to get a loan because I’d been renovating my house and I overspent. So I got the loan to consolidate my debt. I wasn’t totally happy about the interest rate the Lloyds offered me but I decided to get the loan from Lloyds because I banked with them. This meant it was easy and fast to get the loan - I got the money the same day I applied.
If there's one thing you'd tell a friend who's thinking of getting this, what would it be?
My tip would be to always look really carefully at what it’s going to cost you to pay back the whole loan. For me, it was a lot more than I’d thought.
Customer support
To get in touch with customer support for personal loans, you can call Lloyds on 0330 123 3890, or you can message customer services via the Lloyds app.
Frequently asked questions
Repayment holidays are available if you meet certain conditions. Interest will be charged if you take a repayment holiday, so you’ll pay more interest overall and your original term will be extended.
You can apply for a personal loan online, in branch or over the phone – as long as you’re an existing Lloyds customer.
Yes, you can pay your loan back early with no fees. However, you may be charged to up to 58 days interest.
It’s important to check the early repayment terms before applying for any personal loan. If there’s a likelihood that you’ll be able to clear a loan early, then good early-repayment terms should be an important factor in deciding which lender to use.
No, Lloyds personal loans are only available to Lloyds Bank current account holders who have had an account for at least one month.
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. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
Chris Lilly is Head of publishing at finder.com. He's a specialist in personal finance, from day-to-day banking to investing to borrowing, and is passionate about helping UK consumers make informed decisions about their money. In his spare time Chris likes forcing his kids to exercise more.
Considering a Lloyds personal loan? Use our calculator to work out how much you’ll pay back. Not only that, you can see how Lloyds stacks up against the competition and make sure you’re getting the best deal.
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