Best personal loans 2026

The best unsecured personal loan APR currently available is 5.6%. But the reality is loan rates vary from applicant to applicant (generally based on how healthy your credit record is). You can use our market rates calculator to see today’s rates for different loan amounts and durations. But to see your personal rates, use an eligibility checker.

Top personal loan companies for customer service

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 customer satisfaction survey was carried out in January 2025. Learn more about how we conducted our research.

• Customer satisfaction scores methodology

  We asked personal loans customers to rate their satisfaction with the service they received and whether they’d recommend the provider to a friend. Our independent survey of 755 personal loan customers was carried out in January 2025.

  We have shown the percentage recommended score in the table above and used these ratings to decide the winners of our awards. Where there was a draw on the “would recommend percentage”, we used the overall rating out of 5 as a tie-breaker.

Best personal loan rates for February 2026

Note that it maybe possible to get a better rate from these lenders for specific amounts/terms. The representative APRs above are the rate that most (at least 51%) customers actually end up with across all amounts and terms offered by that lender.

Best loan companies by expert score

Our top personal loans of 2026 by category

• Best personal loan for good credit: Novuna Personal Loan
• Best personal loan for bad credit: Abound Personal Loan
• Best fast personal loan: Tesco Bank Personal Loan (Clubcard)
• Best guarantor loan: Guarantormyloan Guarantor Loan
• Best homeowner loan: Norwich Trust Personal Loan
• Best personal loan for pensioners/retired people: Santander Personal Loan
• Best personal loan for young people: Finio Loans Personal Loan

Finder Score	Representative APR	Max. loan amount	Loan terms
Best personal loan for good credit
Finder score 6.4Standard Novuna Personal Loan	Finder score 6.4Standard	5.7%	£35,000	2 years - 7 years	Representative Example: Representative 5.7% APR fixed. Based on a loan of £7,500 for 60 months at 6.3% p.a. Total £8,607.6 repayable at £143.46 per month.	Check eligibility View details Compare product selection Compare	loading	Why we like it 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. Pros & cons Pros Competitive interest rates Fixed-rate monthly payments Choose the monthly repayment date Instant credit decision Receive money within 2 working days Cons Pre-approved loans unavailable Good credit history only
Best personal loan for bad credit
Finder score 6.3Standard Abound Personal Loan Finder Award	Finder score 6.3Standard	21.8%	£12,000	1 year - 5 years	Representative Example: Representative 21.8% APR fixed. Based on a loan of £2,000 and £100 arrangement fee for 36 months at 17.5% p.a. Total £2,687.58 repayable at £74.67 per month.	Check eligibility View details Compare product selection Compare	loading	Why we like it 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. Pros & cons Pros Quick funding, if approved Flexible repayments Does not use your credit score to determine your eligibility Cons You'll need to connect to Open Banking Additional fees may apply if you change your repayment plan
Best fast personal loan
Finder score 6.8Standard Tesco Bank Personal Loan (Clubcard)	Finder score 6.8Standard	5.8%	£35,000	1 year - 10 years	Representative Example: Representative 5.8% APR fixed. Based on a loan of £10,000 for 60 months at 5.8% p.a. Total £11,502.6 repayable at £191.71 per month.	View details Compare product selection Compare	loading	Why we like it The Tesco Bank Clubcard Personal Loan can provide same-day funds to approved applicants, with loan amounts ranging from £3,000 to £35,000. Pros & cons Pros Same-day funds Competitive rates Take a payment holiday Cons 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
Best guarantor loan
Finder score 6.4Standard Guarantormyloan Guarantor Loan	Finder score 6.4Standard	49.9%	£12,500	1 year - 5 years	Representative Example: Representative 49.9% APR fixed. Based on a loan of £5,000 for 36 months at 49.9% p.a. Total £8,783.28 repayable at £243.98 per month.	Check eligibility View details Compare product selection Compare	loading	Why we like it 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. Pros & cons Pros No upfront fees Not only limited to mortgage holders Cons High eligibility requirements Fees for paying loan off early
Best homeowner loan
Finder score 7.5Great Norwich Trust Personal Loan	Finder score 7.5Great	34.9%	£20,000	3 years - 10 years	Representative Example: Representative 34.9% APR fixed. Based on a loan of £13,000 for 66 months at 30.31% p.a. Total £26,848.14 repayable at £406.79 per month.	Check eligibility View details Compare product selection Compare	loading	Why we like it 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 36 to 120 years. Pros & cons Pros Available to those with limited credit Cashback incentive Flexible loan terms Cons Large service fee Late payment fees
Best personal loan for pensioners/retired people
Finder score 7.4Great Santander Personal Loan Finder Award	Finder score 7.4Great	5.9%	£25,000	1 year - 5 years	Representative Example: Representative 5.9% APR fixed. Based on a loan of £10,000 for 60 months at 5.9% p.a. Total £11,529 repayable at £192.15 per month.	Check eligibility View details Compare product selection Compare	loading	Why we like it 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). Pros & cons Pros Same-day funding available Low rates Fixed monthly payments No set-up or arrangement fees Overpayments allowed Cons Same day funding only available in branch You'll need a good credit score to apply
Best personal loan for young people
Finder score 5.7Standard Finio Loans Personal Loan	Finder score 5.7Standard	39.9%	£5,000	1 year - 3 years	Representative Example: Representative 39.9% APR fixed. Based on a loan of £2,000 for 24 months at 39.9% p.a. Total £2,785.68 repayable at £116.07 per month.	Check eligibility View details Compare product selection Compare	loading	Why we like it Part of Oakbrook and formerly known as Likely Loans, Finio offers small loans and doesn't expect tip-top credit records. Pros & cons Pros Decisions in minutes No guarantor needed Supportive service Cons Not the lowest APRs you'll see on the market

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What is the average personal loan rate in the UK?

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.

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."

Michelle Stevens

Deputy editor

How to choose the best personal loan

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.

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 May 2025, the average interest rate for a £5,000 personal loan in the UK was 10.96%.

• 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.

To make sure you get accurate and helpful information, this guide has been edited by Michelle Stevens as part of our fact-checking process.

Written by

Chris Lilly

Head of publishing

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. See full bio

Chris's expertise

Chris has written 519 Finder guides across topics including:

• Loans & credit cards
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Co-written by

Rachel Wait

Writer

Rachel Wait is a freelance journalist and has been writing about personal finance for more than a decade, covering everything from insurance to mortgages. She has written for a range of personal finance websites and national newspapers, including The Observer, The Mail on Sunday, The Sun and the Evening Standard. Rachel is a keen baker in her spare time. See full bio