Get the best personal loan

Compare the best loans for fast access, small and large amounts, and those from the best lenders. 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.

The most competitive loan rates tend to be on borrowing amounts of between £7,500 and £25,000. If you’ve got good credit, this means you can currently enjoy rates as low as 5.9% APR with TSB. This applies to loans over a term of 1 to 5 years. If you don’t have good credit, 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.

Best personal loans for June 2024:

Here are our picks for personal loans for a range of circumstances:

Best for bad credit
Abound Personal Loan (formerly Fintern) logo
Finder Award
Abound Personal Loan (formerly Fintern)
Check eligibility
25.8% APR representative (Fixed)
4.5 ★★★★★
Quick decisions
Overpay with no fee
Uses Open-Banking to assess affordability
Best for guarantor loans
Guarantor My Loan logo
Guarantor My Loan
Check eligibility
49.9% APR representative (Fixed)
3.5 ★★★★★
Fixed loan terms
Same day funds
Flexibility over early repayment
Best for fast funding
Tesco Bank Clubcard Personal Loan logo
Tesco Bank Clubcard Personal Loan
Read review
6.1% APR representative (Fixed)
4.5 ★★★★★
Same-day funds
Competitive rates
Take a payment holiday

Expert analysis: Credit and loans expert Michelle Stevens explains how to pick the best personal loan

michellestevens profile pic
Michelle Stevens

Deputy editor

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).

TSB Personal Loan

6.2%

APR representative

£25,000

Max loan

1-7 years

Loan terms

TSB charges new and existing customers a fixed competitive rate of 6.2% APR representative on loans between £7,500 and £25,000.
  • Fixed rates
  • Flexible loan amounts
  • Long loan terms
  • No application fee
  • No repayment holidays
  • Good credit history only
Age 18 or over
Credit ratings Good
Soft credit search Yes
Joint applications Yes
Instant decision Yes
Repayment frequency Monthly
Representative example: Borrow £10,000.00 over 3 years at a rate of 6.2% p.a. (fixed). Representative APR 6.2% and total payable £10,956.60 in monthly repayments of £304.35.

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

12-36 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.

Lloyds Bank Existing Customer Personal Loan

6.7%

APR representative

£50,000

Max loan

1-7 years

Loan terms

Lloyds Bank offers its existing customers flexible loans that can be funded immediately if approved between 9am – 8:30pm.
  • Quick funding and approval
  • Payment holidays
  • Exisiting customers only
Age 18 or over
Credit ratings Good
Soft credit search Yes
Joint applications Yes
Instant decision Yes
Repayment frequency Monthly
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.

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.
  • Available to those with limited credit
  • Cashback incentive
  • Flexible loan terms
  • Large service fee
  • Late payment fees
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.

What “best” means: How we chose our top loans

While there’s no one loan that’s right for everyone, we’ve put together a list of the loans we consider the “best” based on the following criteria:

  • Our partners. As the UK’s fastest-growing comparison site, we have partnerships with a number of leading banks and lenders. We’re transparent about this, and it often means we can offer exclusive loan products you won’t be able to get anywhere else. The personal loans we have chosen as the best are with lenders we know to be competitive and trustworthy.
  • Best for certain situations. While most loans function in much the same way, the loan that’s best for you will depend on a number of factors, such as your credit history and borrowing requirements. We’ve selected the best loans to cover the most common types of borrowers.
  • Additional features. Some loans offer options like the ability to repay the loan early without penalty, or take a break from your repayments for a certain period, and we’ve taken these into account in our selections.
  • Interest rate. In simple terms, the best personal loan is the one that will let you borrow the amount you need with the lowest interest rate. When it came to picking the best loans, we focused heavily on those offering the most competitive rates.

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

  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.
Late repayments can cause you serious money problems. See our debt help guides.

Our 2024 loans customer satisfaction league table

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)

BrandLogoOverall satisfactionCustomers who’d recommendReview
Monzomonzo logo

★★★★★

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.
HSBCHSBC logo

★★★★★

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.
AdmiralAdmiral logo

★★★★★

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 BankSainsburys logo

★★★★★

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.
ZopaZopa logo

★★★★★

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.
HalifaxHalifax logo

★★★★★

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.
NatWestNatWest logo

★★★★★

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 BankTesco Bank logo

★★★★★

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.
LendableRBS logo

★★★★★

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 Money118 118 Money logo

★★★★★

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
SantanderSantander logo

★★★★★

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)Finio logo

★★★★★

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.

How satisfied are borrowers with their personal loan provider?

Response% of respondents
Very satisfied37.22%
Reasonably satisfied45.53%
Neither satisfied nor dissatisfied12.90%
Moderately dissatisfied2.61%
Highly dissatisfied1.74%
Source: Finder survey by OnePoll of 750 Brits

Customer satisfaction ratings methodology

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.

Personal loan ratings

★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor

The customer satisfaction score is based on a survey of 750 personal loan users, carried out in December 2023.

Learn the details of our methodology and scoring.

Frequently asked questions

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.

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