Looking for the best personal loan rate available in the UK? The truth is that the “best” loan will entirely depend on your personal circumstances, your credit history and how much you want to borrow.
Best for | Lender | Representative APR |
|---|---|---|
Novuna Personal Loan | 6.3% | |
Abound personal loan (formerly Fintern loans) | 21.8% | |
Guarantor My Loan | 49.9% | |
Norwich Trust | 34.9% | |
Tesco Bank Clubcard Personal Loan | 5.8% | |
Santander Personal Loan | 5.9% | |
Lendwise | 39.9% |
Personal loan rates have shifted upwards in recent weeks, with the most competitive loan rate now available from Tesco Bank at 6.1% APR. You can borrow between £7,500 to £25,000 over 1 to 5 years and to qualify for this interest rate, you’ll need to have a Tesco Clubcard. You’ll also need a good credit rating, otherwise you’ll likely pay a higher interest rate.
Below, we’ve curated a list of the best loans by credit score and size of the loan so you’ll get a better idea of which lenders are more suitable for you. We’ve also added a wealth of tips and advice to ensure that you’re able to confidently decide which is the best personal loan for you.
Already know what type of loan you need? Start comparing providers.
The average interest rate on a £5,000 personal loan is 10.96% as of May 2025 and the average interest rate on a £10,000 person loan is 6.95%. In July 2024, the average interest rate for a £5,000 loan reached 12.09%, the highest it had been since at least May 2013.
"When choosing which personal loan to apply for, I would first consider what you need the loan for, how quickly you need the funds, and how much you can realistically afford to borrow and repay.
It’s vital that you can meet the loan repayments each month. So think about the amount you want to borrow, how long you want to borrow it for and what the loan interest rate is. That will then determine what your loan repayment will be each month – using a personal loans calculator can help you work this out.
When comparing loans, as well as looking at the interest rate and monthly repayment cost, also check if there are any fees for arranging the loan or paying it back early.
Some lenders will also now give you an indication of how likely you are to be approved for a particular loan by using an eligibility checker. This can let you check what type of loan you might be eligible for before applying and without impacting your credit score."
While the best personal loans will depend on how much you want to borrow, in general you’ll find that the better your credit score and history, the better the interest rate you’ll be offered. For personal loans over £7,500, you could be offered a rate below 10% if you have a top-notch credit score.
Novuna Personal Loan
6.3%
APR representative
£35,000
Max loan
2-7 years
Loan terms
| Age | 21 or over |
|---|---|
| Minimum income | £10,000 |
| Credit ratings | Good |
| Soft credit search | No |
| Joint applications | No |
| Instant decision | Yes |
| Repayment frequency | Monthly |
Securing approval for a personal loan may be more challenging if you have a poor credit score or have limited credit history. While certain lenders may still offer loans to individuals with poor credit, it is important to note that the interest rates are likely to be substantially higher compared to those offered to applicants with good credit. Additionally, borrowing limits might be lower, and there could be additional fees involved in such circumstances.
If you’re concerned about the amount of interest you will have to pay, you could consider a guarantor loan.
However, be aware that applying for a secured loan requires you to secure your loan against an asset, such as your home. Secured loans should be considered with care as if you fail to keep up with your repayments, your home could be repossessed.
Abound Personal Loan
21.8%
APR representative
£12,000
Max loan
1-5 years
Loan terms
| Minimum income | £0 |
|---|---|
| Credit ratings | Fair |
| Soft credit search | Yes |
| Joint applications | No |
| Instant decision | Yes |
| Repayment frequency | Monthly |
These days, many lenders will offer instant decisions or pre-approval on personal loans, but some will still take a couple of days to send you the money. However, in some cases, loan funds can be transferred the same day, with some only taking a couple of hours after being approved.
Tesco Bank Personal Loan (Clubcard)
5.8%
APR representative
£35,000
Max loan
1-10 years
Loan terms
| Age | 18 or over |
|---|---|
| Minimum income | £0 |
| Credit ratings | Good |
| Soft credit search | Yes |
| Joint applications | Yes |
| Instant decision | Yes |
| Repayment frequency | Monthly |
If your credit history is limited or poor, opting for a guarantor loan can enhance your likelihood of approval. This loan type requires enlisting a close friend or family member as a guarantor, responsible for repaying the loan in case you are unable to do so. This reduces the risk for the lender, which increases your chance of approval, and may also help you get better loan terms and rates.
Guarantormyloan Guarantor Loan
49.9%
APR representative
£12,500
Max loan
1-5 years
Loan terms
| Age | 18 or over |
|---|---|
| Minimum income | £0 |
| Credit ratings | Poor |
| Soft credit search | No |
| Joint applications | No |
| Instant decision | Yes |
| Repayment frequency | Weekly, Fortnightly |
Homeowner loans are secured loans that require you to use the equity you have in your property as collateral against the loan. This means that if you are unable to keep up with your loan repayments, your lender can take possession of your home to recoup its money. Because this reduces the lender’s risk, you’ll generally receive more favourable loan terms than you would with an unsecured loan, including much more competitive rates, loan amounts and terms.
Use our free secured loans calculator.
Norwich Trust Personal Loan
34.9%
APR representative
£20,000
Max loan
3-10 years
Loan terms
| Age | 21 to 70 |
|---|---|
| Minimum income | £15,600 |
| Credit ratings | Poor or Fair |
| Soft credit search | Yes |
| Joint applications | No |
| Instant decision | No |
| Repayment frequency | Monthly |
Most major UK lenders offer personal loans if you’re a pensioner or retired. Some lenders also offer specialised types of loans that are designed for older homeowners. Although options may be a little more limited compared to someone who is earning a regular salary, lenders still recognise that retired people may make good candidates for a loan if they meet other criteria. Our experts have chosen the best personal loan for pensioners/retired people on the market for December 2025.
Santander Personal Loan
5.9%
APR representative
£25,000
Max loan
1-5 years
Loan terms
| Age | 21 or over |
|---|---|
| Minimum income | £10,500 |
| Credit ratings | Good |
| Soft credit search | Yes |
| Joint applications | Yes |
| Instant decision | Yes |
| Repayment frequency | Monthly |
Getting a first time loan as a young person may be more difficult than simply applying and getting approved, however, there are lenders on the market that try and make the borrowing process as simple as possible. Our experts have chosen the best personal loan for young people on the market that does just that.
Finio Loans Personal Loan
39.9%
APR representative
£5,000
Max loan
1-3 years
Loan terms
| Age | 18 to 73 |
|---|---|
| Minimum income | £0 |
| Credit ratings | Poor or Fair or Good |
| Soft credit search | Yes |
| Joint applications | No |
| Instant decision | Yes |
| Repayment frequency | Monthly |
This is a non-exhaustive list of the key features of personal loans that you can use to differentiate lenders in the UK and help you find the right loan for your needs.
Be aware of early repayment penalties. According to regulations, you may be charged extra interest, up to 58 days, or 28 days if you have less than 12 months left on your loan. Consider this when comparing loan options.
We asked the customers of personal loan providers featured in this table whether they’d recommend it to a friend and we’ve ordered the table by the percentage score. Our independent survey was carried out in January 2025. Learn more about how we conducted our research.
| Brand | Logo | Customers who’d recommend | Review | |
|---|---|---|---|---|
| Nationwide |  | 93% | Nationwide, the world’s largest building society, provides fast and straightforward fixed-rate loans to members. | Read our review |
| Shawbrook Bank |  | 93% | Shawbrook is a specialist bank offering an alternative to traditional high-street lenders, working directly with both consumers and through a broker network. | Read our review |
| The AA |  | 90% | The AA is a broker offering fixed monthly repayments on its loans. It’s not currently taking new customers. | Read our review |
| Tesco Bank |  | 90% | Tesco Bank offers unsecured personal loans at some very competitive rates. | Read our review |
| Halifax |  | 90% | Halifax is part of Lloyds Banking Group and offers flexible, fixed rate loans. | Read our review |
| NatWest |  | 90% | NatWest offers personal loans tailored for existing customers with good or excellent credit. | Read our review |
| Barclays |  | 90% | Barclays offers unsecured loans to Barclays customers with a range of terms depending on circumstances. | Read our review |
| Abound (formerly Fintern) |  | 87% | Abound promises to offer competitive, personalised loans that are calculated on your ability to repay and not your credit score. | Read our review |
| Sainsbury’s Bank |  | 87% | Sainsbury’s Bank offer a range of loans for Nectar card holders. The bank is not currently taking new applications. | Read our review |
| MBNA |  | 87% | MBNA offers personal loans as a broker, with Lloyds Bank as the lender. | Read our review |
| HSBC |  | 87% | HSBC offers competitive rates on personal loans and you can overpay without paying an extra fee. | Read our review |
| Zopa |  | 83% | Zopa was founded in 2004 and offers unsecured loans, which are based on creditworthiness. | Read our review |
| Virgin Money |  | 83% | Virgin Money launched its first unsecured personal loans in 2020, with instant decisions and quick funding. | Read our review |
| Santander |  | 83% | Santander offers new and existing customers unsecured personal loans. | Read our review |
| Monzo |  | 83% | Monzo offers loans with fixed monthly repayments, same-day funding and flexible amounts, all through its app. | Read our review |
| TSB |  | 80% | TSB offers fixed-rate unsecured loans to both existing and new customers with good credit. | Read our review |
| Novuna |  | 80% | Novuna offers fixed-rate personal loans with a simple application process and quick payment times. | Read our review |
| Admiral |  | 80% | Admiral is known for insurance but also provides unsecured loans. | Read our review |
| RateSetter |  | 77% | RateSetter is a marketplace where people looking to borrow are matched up with those who want to invest. It’s no longer accepting new applications. | Read our review |
| AIB |  | 77% | AIB differs from some competitors – under its “fairness guarantee”, the rate you’re quoted when you apply will be the one you get. | Read our review |
| M&S Bank |  | 73% | M&S Bank offers personal loans with competitive rates, and discounts for existing customers of M&S Bank. | Read our review |
| Lendable |  | 70% | Lendable considers applications from people who don’t have a great credit score. | Read our review |
| Post Office Money |  | 67% | The Post Office provides competitive loans with instant decisions and next day funding for people with good credit. | Read our review |
| 118 118 Money |  | 64% | 118 118 Money focuses on small loans over short terms – offering with a range of amounts and repayment terms within this. | Read our review |
| Finio Loans (formerly Likely Loans) |  | 63% | Finio Loans specialises in loans for people who don’t have a great credit history. It’s a sister company of Likely Loans (which no longer accepts applications). | Read our review |
An interest rate is the amount you’re charged for borrowing money. The interest rate you’re offered by providers when applying for a loan depends on your credit history, and it also varies across different lenders. In May 2025, the average interest rate for a £5,000 personal loan in the UK was 10.96%.
Most lenders offer different interest rates to borrowers depending on how risky they are to lend to. This is what’s called “risk-based pricing”. All responsible lenders will run a full credit search before approving an application, but the vast majority of lenders now offer a “soft search” or “eligibility checker” facility. These allow borrowers to get a good idea of the likelihood that they would be approved for a loan, plus an estimate of the rate they would be offered, without their credit score being affected.
If you miss a loan repayment, you’ll be asked to make up this missing amount as soon as possible. You’ll also likely be charged a late payment fee and the rate of interest you are charged could increase. If you’re struggling to repay your loan, talk to your lender immediately.
This will depend on the type of loan. Personal loan terms tend to be between 1 and 7 years, while secured loan terms are longer – up to 25 years or more.
Yes, it’s still possible to get a loan if you have a poor credit score, but the number of lenders you’ll have to choose from will be much lower. You will usually have to pay a higher interest rate and the terms of your loan won’t be as competitive as they would be if you had excellent credit.
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