Please note: You should always refer to your loan agreement for exact repayment amounts as they may vary from our results.
Late repayments can cause you serious money problems. See our debt help guides.
Lloyds personal loans review May 2023
Lloyds bank offers competitive, fixed rate personal loans to existing customers. Loan amounts between £1,000 and £50,000 starting from 5.9%.
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How do Lloyds Bank personal loans compare against the competition’s?
What is Lloyds Bank?
Lloyds bank plc is a retail and commercial bank founded in Birmingham 1765, considered one of the “big four” banks in the UK. You can apply for a personal loan from Lloyds online, in branch or over the phone.
If you’re looking to buy a new car, consolidate debt, refurbish the kitchen, or take that desperately needed holiday, Lloyds offers a wide range of borrowing options.
Key features of Lloyd’s personal loans
Lloyds offers unsecured personal loans, meaning they’re based on creditworthiness, rather than using property, vehicles and other assets as collateral. The loans are available over a period of 1-7 years for loans between £1,000 and £50,000.
While Lloyds rates are normally competitive, the representative APR may not be the rate you’ll receive: Lloyds will offer you a rate based on an assessment of your personal financial circumstances.
- Loan terms from 1-7 years.
- Loan amounts from £1,000-£50,000.
- Payment holidays. You have the option to apply for 2 repayment holidays a year, subject to approval. This will cost you more overall, as you’ll still be accruing interest during these periods.
- Fixed interest rates. Meaning you’ll pay the same amount each month and you know how much the loan is going to cost overall.
- Quick decision. A decision will be made online within 5 minutes.
- Quick access to funds. Funds can be transferred to your account immediately between 9am – 8:30pm or before 9am the next day.
- You must be an existing Lloyds customer.
All interest rates are fixed for the duration of your repayment period, however the rate you’re offered will depend on factors like the amount you apply for, the term of the loan, your credit rating and your income. It may differ from the advertised “Representative APR”.
What is APR?
If you’re comparing any credit-based products, it won’t be long before you’ll come across the Annual Percentage Rate (APR). This figure is designed to provide an annual summary of the cost of a loan. It takes into account both interest and any mandatory charges to be paid (for example an arrangement fee) over the duration of a loan.All lenders must calculate the APR of their products in the same way, and must tell you the APR before you sign an agreement, so for consumers it can be a handy tool for comparison.
Bear in mind, however, that lenders are only obliged to award this rate to 51% of those who take out the loan – the other 49% could pay more. That’s why it’s often referred to as the representative APR.
Am I eligible for a Lloyds personal loan?
When applying for a Lloyds personal loan, factors such as your credit history, income and the amount you apply for will be considered. You also need to be certain you can meet the repayment terms. You’ll then also need to meet the following criteria:
- You must be aged over 18 years old.
- Have a valid form of ID.
- You must be a UK resident.
However because Lloyds personal loans are only available to Lloyds current account holders, if that includes you, you may not need to jump through so many hoops!
What credit score do I need to get a Lloyds loan?
Lloyds typically offers loans to applicants with high credit scores. It's important to note that your credit record is just one factor that Lloyds will consider. However if you don't have a high credit score, you're very unlikely to get approved for a Lloyds loan.
A "Good" or "Excellent" credit rating would require a score of 881 or higher if you're referring to Experian's scale, 531 or higher if you're referring to Equifax's scale and 604 or higher if you're referring to TransUnion's scale.
Do Lloyds loans give an instant decision?
Yes, Lloyds offers instant decisions online in most cases (occasionally more information may be required). First, you can use the soft search eligibility checker to find out your chances of getting approved (this won't affect your credit score). Then, if you opt to go ahead and apply, you'll get an instant answer. Lloyds can also offer same-day funding of your loan.
Can I get a second Lloyds loan?
Yes, Lloyds allows you to have more than one loan running at the same time. Each application for credit will be considered on its own merit. Alternatively, Lloyds also allows you to effectively "top up" your loan, by closing your current loan and starting a new, larger loan. There's no penalty for repaying ahead of time, but bear in mind that any overpayments may be subject to up to two months of interest beyond the date on which you overpay. Because of this, it may work out cheaper to run a second loan alongside the first, rather than consolidating the two.
Can I make overpayments on a Lloyds loan?
Yes, you can make overpayments without incurring any penalty fee. However Lloyds can continue to charge interest for up to two months on any sums overpaid, so although making overpayments stands to save you money in interest, you may not save quite as much as you'd imagined.
How do I apply?
If you’ve decided that a Lloyds personal loan is for you, then you can apply online by logging in to your existing Lloyds bank account and following the loan application process.
Does Lloyds offer debt consolidation loans?
Yes, Lloyds offers personal loans for debt consolidation for up to £35,000. As with a regular Lloyds loan, you’ll need to have good credit, and be an existing Lloyds Bank current account holder. With a Lloyds debt consolidation loan, you’ll also have the option of repayment holidays, additional payments and early repayment.
Lloyds customer reviews
Lloyds Bank has received mostly negative reviews from customers, according to review platform Trustpilot. It currently has a rating of 1.5 out of 5, based on more than 2,800 reviews (updated July 2022). Some customers reported issues getting a loan, as well as poor customer service.
Frequently asked questions
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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.
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