Looking for the best personal loan 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.
There has been little change in loan rates in recent months. This means if you have good credit, the best loan rate can still be found with TSB. It charges 5.9% APR on borrowing of between £7,500 and £25,000 over a term of 1 to 5 years.
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.
Here are our picks for personal loans for a range of circumstances:
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 as low as 5% if you have a top-notch credit score. If you’re not sure what your credit score looks like, you can check yours for free with Finder).
TSB Personal Loan
5.9%
APR representative
£25,000
Max loan
1-7 years
Loan terms
| Age | 18 or over |
|---|---|
| Credit ratings | Good |
| Soft credit search | Yes |
| Joint applications | Yes |
| 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 (formerly Fintern)
25.8%
APR representative
£10,000
Max loan
12-36 years
Loan terms
| Credit ratings | Fair |
|---|---|
| Soft credit search | No |
| Joint applications | No |
| Instant decision | No |
| 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.
Lloyds Bank Existing Customer Personal Loan
6.7%
APR representative
£50,000
Max loan
1-7 years
Loan terms
| Age | 18 or over |
|---|---|
| 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.
Guarantor My Loan
49.9%
APR representative
£10,000
Max loan
1-5 years
Loan terms
| Age | 18 or over |
|---|---|
| Credit ratings | Poor |
| 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.
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 loans customers to score their satisfaction with the service they had received from their primary platform, and also whether they would recommend the service to a friend. Our independent survey of 750 personal loan users was carried out in December 2023 – full details of our methodology here.
Table ordered by percentage of customers who said they’d recommend the brand to a friend (recommendation score)
| Brand | Logo | Overall satisfaction | Customers who’d recommend | Review |
|---|---|---|---|---|
| Monzo |  | ★★★★★ 4.8/5 | 97% | Monzo offers loans with fixed monthly repayments, same-day funding and flexible amounts, all through its app. Its customers clearly like the service, giving it 4.8 out of 5 for overall satisfaction. |
| HSBC |  | ★★★★★ 4.6/5 | 94% | HSBC offers competitive rates and you can overpay without paying an extra fee. This year, the brand was highly commended, with customers giving it 4.6. out of 5 for satisfaction. |
| Barclays |  | ★★★★★ 4.6/5 | 90% | Barclays offers unsecured loans to Barclays customers. It scored 4.6 for overall satisfaction, and an impressive 90% of it customers in our survey would recommend it. |
| Admiral |  | ★★★★★ 4.4/5 | 100% | Admiral is known for insurance but also provides unsecured loans. Customers in our survey gave it 4.4 out of 5 for overall satisfaction, but all of them said they’d recommend the brand. |
| Sainsbury’s Bank |  | ★★★★★ 4.4/5 | 94% | Sainsbury’s Bank was last year’s loans winner, and this year its customers were also generally positive. It scored 4.4 out of 5, with 94% of customers in the survey saying they’d recommend it. |
| Zopa |  | ★★★★★ 4.3/5 | 91% | Zopa was founded in 2004 and offers unsecured loans. Zopa customers in our survey gave it 4.3 out of 5 for overall satisfaction. |
| Halifax |  | ★★★★★ 4.3/5 | 90% | Halifax is part of Lloyds Banking Group and offers flexible, fixed rate loans. Halifax loans customers in our survey gave it 4.3 out of 5 for overall satisfaction. |
| NatWest |  | ★★★★★ 4.3/5 | 89% | NatWest offers loans to existing current account customers. Its borrowers gave it 4.3 out of 5 for overall satisfaction, in our survey. |
| Tesco Bank |  | ★★★★★ 4.3/5 | 86% | Tesco Bank offers unsecured personal loans at some very competitive rates. Its customers in our survey gave the brand 4.3 out of 5 for overall satisfaction. |
| Lendable |  | ★★★★★ 4.1/5 | 79% | Lendable considers applications from people who don’t have a great credit score. Lendable customers in our latest survey gave the brand 4.1 out of 5 for overall satisfaction. |
| 118 118 Money |  | ★★★★★ 4.0/5 | 79% | 118 118 Money focuses on small loans over short terms. Customers of its loans gave the brand 4 out of 5 for overall satisfaction in our survey |
| Santander |  | ★★★★★ 3.8/5 | 88% | Santander offers new and existing customers unsecured personal loans. The brand scored 3.8 out of 5 from the customers we surveyed. |
| Finio Loans (formerly Likely Loans) |  | ★★★★★ 3.4/5 | 83% | 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). Finio Loans scored 3.4 out of 5 based on its customers’ feedback in our survey. |
| Response | % of respondents |
|---|---|
| Very satisfied | 37.22% |
| Reasonably satisfied | 45.53% |
| Neither satisfied nor dissatisfied | 12.90% |
| Moderately dissatisfied | 2.61% |
| Highly dissatisfied | 1.74% |
In December 2023, we ran an independent customer satisfaction survey on personal loan providers. We received answers from 750 personal loan customers who gave us their opinion on their current lender.
We asked respondents how satisfied they are with their personal loan provider (giving a rating of 1 to 5) and whether they would recommend the lender to a friend. We converted the results into star ratings and created a shortlist of the best-performing brands for our awards. Where the star ratings led to a draw, we used the recommendation score (the percentage of customers who said they would recommend the lender to a friend) as a tie-breaker.
Full details of our star ratings for this sector are on the personal loans rating methodology page.
The customer satisfaction score is based on a survey of 750 personal loan users, carried out in December 2023.
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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