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The best personal loan rates in the UK
Our experts have scoured the market to find you the best loan rates. It’s not something you want to breeze over.
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 bad credit
Abound Personal Loan (formerly Fintern)
Check eligibility
25.8% APR representative (Fixed)
Quick decisions
Overpay with no fee
Uses Open-Banking to assess affordability
Overpay with no fee
Uses Open-Banking to assess affordability
Best for guarantor loans
Guarantor My Loan
Check eligibility
49.9% APR representative (Fixed)
Fixed loan terms
Same day funds
Flexibility over early repayment
Same day funds
Flexibility over early repayment
Best for fast funding
Tesco Bank Clubcard Personal Loan
Read review
6% APR representative (Fixed)
Same-day funds
Competitive rates
Take a payment holiday
Competitive rates
Take a payment holiday
The top personal loan rates for 2025
Best for | Lender | Representative APR |
|---|---|---|
Novuna Personal Loan | 6.5% | |
Abound personal loan (formerly Fintern loans) | 25.8% | |
Guarantor My Loan | 49.9% | |
Norwich Trust | 31.9% | |
Tesco Bank Clubcard Personal Loan | 6% | |
Santander Personal Loan | 6% | |
Lendwise | 10% |
What’s the best overall loan rate in the UK at the moment?
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.
What is the average personal loan rate in the UK?
The average interest rate on a £5,000 personal loan is 11.15% as of March 2025 and the average interest rate on a £10,000 person loan is 6.75%. 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.
Our expert says: Credit and loans expert Michelle Stevens explains how to pick the best personal loan
"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."
Best personal loan for good credit
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).
Novuna Personal Loan
6.5%
APR representative
£35,000
Max loan
48-49 years
Loan terms
Novuna Personal Finance can provide new and existing customers with loans of between £1,000 and £35,000, starring at a competitive rate of 6.5% APR representative.
- Competitive interest rates
- Fixed-rate monthly payments
- Choose the monthly repayment date
- Instant credit decision
- Receive money within 2 working days
- Pre-approved loans unavailable
- Good credit history only
| Age | 21 or over |
|---|---|
| Minimum income | £10000.00 Per Annum |
| Credit ratings | Good |
| Soft credit search | No |
| Joint applications | No |
| Instant decision | Yes |
| Repayment frequency | Monthly |
Representative example: Borrow £10,000.00 over 3 years at a rate of 6.5% p.a. (fixed). Representative APR 6.5% and total payable £11,003.04 in monthly repayments of £305.64.
Best personal loan for bad credit
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
1-3 years
Loan terms
Unlike most lenders, Abound (formerly known as Fintern loans) offers affordable unsecured loans to those with bad and good credit. Abound uses AI and Open Banking to determine how much you can afford to borrow.
- Quick funding, if approved
- Flexible repayments
- Does not use your credit score to determine your eligibility
- You'll need to connect to Open Banking
- Additional fees may apply if you change your repayment plan
| Credit ratings | Fair |
|---|---|
| Soft credit search | No |
| Joint applications | No |
| Instant decision | No |
| Repayment frequency | Monthly |
Representative example: £2,000 loan repayable over 36 months. 36 monthly payments of £77.60. Rate of interest 20.2% p.a. (fixed). Representative 25.8% APR. Total amount repayable £2,793.60.
Best fast personal loan
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 Clubcard Personal Loan
Customer rating
★★★★★
6%
APR representative
£25,000
Max loan
1-10 years
Loan terms
The Tesco Bank Clubcard Personal Loan can provide same-day funds to approved applicants, with loan amounts ranging from £3,000 to £25,000.
- Same-day funds
- Competitive rates
- Take a payment holiday
- You need a Clubcard to get the best rates
- Doesn't offer bad credit loans
- Interest charge will be applied if you want to pay loan off early
| Age | 18 or over |
|---|---|
| Credit ratings | Good |
| Soft credit search | No |
| Joint applications | Yes |
| Instant decision | Yes |
| Repayment frequency | Monthly |
Representative example: Borrow £10,000.00 over 3 years at a rate of 6.0% p.a. (fixed). Representative APR 6.0% and total payable £10,925.64 in monthly repayments of £303.49.
Best guarantor loan
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
Guarantor My Loan is a peer-to-peer lender specialising in guarantor loans, and aims to give options to those let down by traditional lenders. It can offer competitive rates, but also charges a service fee that increases the more you borrow.
- No upfront fees
- Not only limited to mortgage holders
- Rates are high compared to alternative
- High eligibility requirements
- Fees for paying loan off early
| Age | 18 or over |
|---|---|
| Credit ratings | Poor |
| Repayment frequency | Weekly, Fortnightly |
Representative Example: £5,000 over 36 months, representative 49.9% APR fixed. Monthly payment £243.98. The interest is 17% per annum (fixed) and service fee is 23.17% per annum fixed. Interest payable £1,562.19 and service fee payable £2,221.09. Total repayable £8,783.28.
Best homeowner loan
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 Limited Unsecured Homeowner Loan
31.9%
APR representative
£20,000
Max loan
3-10 years
Loan terms
The Norwich Trust Homeowner Loan is designed for applicants who own their own home. Available loan amounts range from £3,000 to £20,000, with loans repayable over 3 to 10 years.
- Available to those with limited credit
- Cashback incentive
- Flexible loan terms
- Large service fee
- Late payment fees
| Age | 21 to 70 |
|---|---|
| Minimum income | £1300.00 Per Month |
| Credit ratings | Poor or Fair |
| Soft credit search | Yes |
| Joint applications | No |
| Instant decision | No |
| Repayment frequency | Monthly |
Representative example: Borrow £15,000.00 over 3 years at a rate of 28.01% p.a. (fixed). Representative APR 31.9% and total payable £21,430.80 in monthly repayments of £595.30.
Best personal loan for pensioners/retired people
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 May 2025.
Santander Personal Loan
Customer rating
6%
APR representative
£25,000
Max loan
1-5 years
Loan terms
With low rates and, in most cases, an immediate decision on your application, Santander offers competitive loans for new or exisiting customers aged 21 or over (including those who are retired).
- Same-day funding available
- Low rates
- Fixed monthly payments
- No set-up or arrangement fees
- Overpayments allowed
- Same day funding only available in branch
- You'll need a good credit score to apply
| Age | 21 or over |
|---|---|
| Credit ratings | Good |
| Soft credit search | Yes |
| Joint applications | Yes |
| Instant decision | No |
| Repayment frequency | Monthly |
Representative example: Borrow £10,000.00 over 3 years at a rate of 6.0% p.a. (fixed). Representative APR 6.0% and total payable £10,925.64 in monthly repayments of £303.49.
Best personal loan for students/young people
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 students/young people on the market that does just that.
Lendwise
10%
APR representative
£25,000
Max loan
- years
Loan terms
Lendwise offers specialist loans for students and young people with little credit history. The option of deferring repayments until after graduation is unique and could offer students the flexibility they're after. Remember, interest will accrue on disbursed amounts.
- Specialises in student loans
- Repayments changeable
- Overpayments allowed
- Start repaying after you graduate
- Offers financial education
- Rates and terms are unclear until you apply
| Soft credit search | Yes |
|---|---|
| Instant decision | No |
Representative APR 10% (fixed).
Features to compare to find the best personal loan
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.
- Loan amounts. A good place to start is by finding out whether you’ll be able to borrow the amount you need. Lenders might offer different borrowing amounts so be sure to compare them.
- Eligibility. Check the eligibility criteria carefully. There’s no point applying for a loan if you’re not eligible, and remember that lenders will be able to see each application you’ve made on your credit record.
- Loan terms. A longer loan term will reduce your monthly repayments, potentially making them more affordable. However, this also means you’ll pay more interest overall, so it will be more expensive in the long run. It’s a good idea to use a loan calculator as this will let you select how much you want to borrow and the length of term to see what works out to be the most affordable option for you.
- Fees. Many personal loans don’t charge set-up fees but it’s certainly worth checking to be sure. If a particular lender does charge a fee, the total amount payable (the overall cost of the loan) might become your best benchmark for comparison.
- Total amount payable. This is the big one – if you only compare one factor, this should probably be it. You’ll want to keep the total cost as low as possible, while making sure your monthly repayments are affordable.
- Interest rate. A loan’s Annual Percentage Rate (APR) is the main “hook” that a lender will use to market the loan, but lenders are only required to provide it to 51% of borrowers. Your personal circumstances influence the actual rate you receive, some applicants may receive higher or lower.
- Turnaround time. If you’re in a hurry, you might want to look at the time each lender states it takes to actually draw down your funds (transfer the money to your nominated account). If you get a loan with a bank you’re already a customer at, chances are it’ll be pretty quick, but it almost always pays to shop around.
- Restrictions. Personal loans can be used for almost anything, but there are certain restrictions including gambling, business purposes and using it as a down payment to get a bigger loan. You’ll be asked to enter what you plan to use the loan for when you apply.
- Repayment holidays. Some lenders offer short repayment breaks for financial relief, usually 1 or 2 months, but lenders extend the loan term and increase the overall cost since interest still accumulates.
- Early repayment. If you want to pay off your loan before the end of the term, there might be an early repayment penalty. Under Consumer Credit Regulations 2004, lenders may charge extra interest of up to 58 days, or 28 days if you have less than 12 months left on your loan. Consider this when comparing loan options.
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.
How to choose the best personal loan
- Find the right loan type for your purposes. There are a range of different products that sit under the umbrella of “loans”, so it’s crucial you think about what you need the loan for and how much you need to borrow.
- Understand how much you can afford to repay. While knowing how much you need to borrow is the first step to getting a loan, being aware of how much you can afford to borrow is just as important. Make sure you use a loan calculator to check that your monthly repayments will be manageable.
- Compare loans to establish the features that are important to you. As well as the interest rate, it’s also important to consider factors such as whether there are any fees for setting up your loan or repaying it early, and how fast you will receive your loan funds. Consider which of these factors are the most important to you to help you find the right solution.
- Find the most affordable loan that meets your needs. Once you’ve determined your needs, search for the most competitive product. Rates matter, but it’s not just about the APR. Aim for the lowest total repayment while maintaining affordable monthly installments.
- Check your eligibility. Many lenders now allow you to check if you’re likely to be approved for a certain loan by using an eligibility checker. This can give you a better idea of the type of loan you’re eligible for, and won’t affect your credit score.
What to keep in mind when applying
- Don’t apply for, let alone take on, a loan you can’t afford. When borrowing money it is always important to find out what your monthly repayments will be. If you are not confident that you will be able to afford to repay that amount each month, there’s a good chance a lender will have doubts too. Rejected applications don’t show on your credit file, but applications for credit do – too many of these in a short space of time and prospective lenders could be put off. Late repayments come with fees plus additional interest, and are highly likely to damage your credit record too.
- Don’t apply for lots of loans in a short space of time. Take the time to make one sensible application, and if you’re rejected, try to find out why. It’s best to leave at least 3 months, preferably 6, before applying again.
- Read the fine print. When a lender approves your application, they’ll send you a loan offer. This is an opportunity to check that you’re being offered what you applied for (rate, amount, term etc.), and to check you’re happy with the terms of the agreement. OK, it’s not the most exciting document in the world, but read the terms and conditions from start to finish and ensure you are aware of all fees and restrictions.
Late repayments can cause you serious money problems. See our debt help guides.
Top personal loans providers for customer satisfaction
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. | |
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. | |
The AA |  | 90% | The AA is a broker offering fixed monthly repayments on its loans. It’s not currently taking new customers. | |
Tesco Bank |  | 90% | Tesco Bank offers unsecured personal loans at some very competitive rates. | |
Halifax |  | 90% | Halifax is part of Lloyds Banking Group and offers flexible, fixed rate loans. | |
NatWest |  | 90% | NatWest offers personal loans tailored for existing customers with good or excellent credit. | |
Barclays |  | 90% | Barclays offers unsecured loans to Barclays customers with a range of terms depending on circumstances. | |
Abound (formerly Fintern) |  | 87% | Abound promises to offer competitive, personalised loans that are calculated on your ability to repay and not your credit score. | |
Sainsbury’s Bank |  | 87% | Sainsbury’s Bank offer a range of loans for Nectar card holders. The bank is not currently taking new applications. | |
MBNA |  | 87% | MBNA offers personal loans as a broker, with Lloyds Bank as the lender. | |
HSBC |  | 87% | HSBC offers competitive rates on personal loans and you can overpay without paying an extra fee. | |
Zopa |  | 83% | Zopa was founded in 2004 and offers unsecured loans, which are based on creditworthiness. | |
Virgin Money |  | 83% | Virgin Money launched its first unsecured personal loans in 2020, with instant decisions and quick funding. | |
Santander |  | 83% | Santander offers new and existing customers unsecured personal loans. | |
Monzo |  | 83% | Monzo offers loans with fixed monthly repayments, same-day funding and flexible amounts, all through its app. | |
TSB |  | 80% | TSB offers fixed-rate unsecured loans to both existing and new customers with good credit. | |
Novuna |  | 80% | Novuna offers fixed-rate personal loans with a simple application process and quick payment times. | |
Admiral |  | 80% | Admiral is known for insurance but also provides unsecured loans. | |
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. | |
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. | |
M&S Bank |  | 73% | M&S Bank offers personal loans with competitive rates, and discounts for existing customers of M&S Bank. | |
Lendable |  | 70% | Lendable considers applications from people who don’t have a great credit score. | |
Post Office Money |  | 67% | The Post Office provides competitive loans with instant decisions and next day funding for people with good credit. | |
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. | |
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). |
Frequently asked questions
What are interest rates for personal loans?
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 March 2025, the average interest rate for a £5,000 personal loan in the UK was 11.15%.
Will my credit score affect my personal loan interest rate?
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.
What happens if I miss a personal loan repayment?
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.
How long can I borrow for?
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.
Can I take out a loan with bad credit?
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.
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.
More resources on Finder
More guides on Finder
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Abound personal loan (formerly Fintern loans) review
Abound (formerly Fintern) is a UK lender that promises to offer borrowing “reinvented”, with affordable tailored loans.
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Marks & Spencer loan calculator
Considering an M&S Bank personal loan? Use our calculator to work out how much you’ll pay back and how M&S holds up against the competition.
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Let our Novuna loans calculator do the work
Novuna (formerly Hitachi) Personal Finance is not a bank – it’s a simplified, online finance provider from Japan that makes instant decisions on personal loans. Check out whether Novuna could be the yin to your financial yang.
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Browse personal loan providers: A to Z list
Planning a large expenditure like some home improvements, a wedding or a new car? Looking to simplify existing debt? Then an unsecured personal loan could help you. Here are some popular UK lenders that we review and compare.
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Post Office loans calculator and review
Compare Post Office fixed-rate personal loans against products from a range of UK lenders. Apply online and secure a competitive rate.
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Tesco loans calculator and overview
Compare Tesco fixed-rate personal loans against products from a range of UK lenders. Apply online and secure a competitive rate.
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M&S personal loans calculator and review
Find out more about M&S unsecured personal loans of between £1,000.00 to £25,000.00 Enjoy a fixed rate, no setup fees and the option to defer repayments for the first three months.
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AA personal loans review
Find out all you need to about personal loans from the AA. Fast, simple comparison with a range of UK lenders.
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Halifax loans calculator and review 2025
Compare Halifax fixed-rate personal loans against products from a range of UK lenders. Apply online and secure a competitive rate.
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NatWest personal loans calculator
Compare NatWest fixed-rate personal loans against products from a range of UK lenders. Apply online and secure a competitive rate.