Personal loans with no fees

Most unsecured loans in the UK don't come with fees attached, but there are exceptions.

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Name Product Ratings Customer rating Finder score Total Payable Monthly Repayment Representative APR Link
Novuna Personal Loan
Finder score
★★★★★
★★★★★
User rating
★★★★★
Expert analysis
Check eligibility
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Representative example: Borrow £10,000.00 over 3 years at a rate of 7.4% p.a. (fixed). Representative APR 7.4% and total payable £11,142.00 in monthly repayments of £309.50.
AIB (NI) Personal Loan
Finder score
★★★★★
Not yet rated
★★★★★
Expert analysis
View details
Representative example: Borrow £10,000.00 over 3 years at a rate of 7.1% p.a. (fixed). Representative APR 7.1% and total payable £11,095.56 in monthly repayments of £308.21.
JN Bank Homeowner Personal Loan
Finder score
★★★★★
Not yet rated
★★★★★
Expert analysis
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Representative example: Borrow £10,000.00 over 3 years at a rate of 13.9% p.a. (fixed). Representative APR 13.9% and total payable £12,144.60 in monthly repayments of £337.35.
Nationwide Member Personal Loan
Finder score
★★★★★
Not yet rated
★★★★★
Expert analysis
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Representative example: Borrow £10,000.00 over 3 years at a rate of 6.4% p.a. (fixed). Representative APR 6.4% and total payable £10,987.56 in monthly repayments of £305.21.
Monzo Bank Personal Loan
Finder score
★★★★★
Not yet rated
★★★★★
Expert analysis
View details
Representative example: Borrow £10,000.00 over 3 years at a rate of 28.0% p.a. (fixed). Representative APR 28.0% and total payable £14,302.08 in monthly repayments of £397.28.
Bamboo Personal Loan
Finder score
★★★★★
★★★★★
User rating
★★★★★
Expert analysis
Check eligibility
View details
Representative example: Borrow £10,000.00 over 3 years at a rate of 49.9% p.a. (fixed). Representative APR 49.9% and total payable £17,566.20 in monthly repayments of £487.95.
Shawbrook Bank Personal Loan
Finder score
★★★★★
Not yet rated
★★★★★
Expert analysis
Check eligibility
View details
Representative example: Borrow £10,000.00 over 3 years at a rate of 16.9% p.a. (fixed). Representative APR 16.9% and total payable £12,606.12 in monthly repayments of £350.17.
Danske Bank Home Owners Personal Loan
Finder score
★★★★★
Not yet rated
★★★★★
Expert analysis
View details
Representative example: Borrow £10,000.00 over 3 years at a rate of 7.4% p.a. (fixed). Representative APR 7.4% and total payable £11,142.00 in monthly repayments of £309.50.
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Personal loans can be a great tool to help you out of a sticky financial situation or to help finance a large purchase. But it’s important to compare lenders to find the right deal for you. A loan with no fees attached is obviously appealing, but it’s normally smartest to simply look for the loan that will cost you the least overall. Here’s what you need to know.

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.

What fees do loans normally have?

When you borrow money, you’ll generally need to pay it back with interest. Although you might not think of it as a fee, the interest rate is usually how lenders cover their costs and make a profit.

In the world of personal loans, the key figure that lenders use to promote their products is the “annual percentage rate” (APR). The APR is designed to provide an annual summary of the interest you’ll pay, plus any mandatory fees, and must be calculated by all lenders in the same way. This makes it a handy benchmark for consumers looking to compare loans.

Aside from the interest, the main fees (that won’t be included with no-fee loans but may feature on other personal loans) are:

  • Set-up fee. A one-off fee covering the cost of administering a loan. It’s sometimes called an admin fee, loan fee, lender fee or a product fee. If you don’t want to pay this upfront, lenders may simply add this on to your outstanding balance.
  • Late payment fees. It’s common for lenders to charge one-off fees to punish late repayments. They’ll also add additional interest. What’s more, late loan repayments will damage your credit score, making it harder for you to obtain loans in the future.
  • Early repayment fees. Most lenders will tell you there’s no penalty for paying off their loans early, or for making overpayments. But what many borrowers don’t realise is that they will commonly be charged up to two months’ further interest on any sums paid early. Lenders sometimes bury this information in the small print, and don’t always make it easy to clear the loan early.

If you’re considering a secured loan (that’s where you put up your house as collateral in order to borrow more or to get a better rate), then you’ll normally incur a broker fee too.

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.

How do loans with no fees work?

Personal loans without fees won’t come with a set-up fee. This means the interest rate and the APR will be the same.

However, nearly all of these products still do charge late payment fees. It’s never a good idea to accept a loan where you’re not confident about making the repayments on time. Some will also continue to charge interest on early repayments up to two months beyond the date on which the amounts were paid.

What’s more, lenders tend to up the interest rate on their “no fee” products to make up for the shortfall from not charging a set-up fee. In this case, it could be argued that the administration costs are simply spread over the term of a loan, rather than charged as a one-off fee.

Pros and cons of no-fee loans

Pros

  • Easier to understand how much you’ll pay
  • Less hassle to organise
  • Set monthly repayments
Cons

  • Can be deceptive, as they’re not always the cheapest deal
  • Strict eligibility criteria
  • Other fees may still apply e.g. late or early repayment charges

Example

Here’s a scenario that a typical borrower may face.

Samantha wants to borrow £5,000 over two years.

  • Lender A charges a fixed interest rate of 6%, plus a 0.5% set-up fee. The total amount payable is £5.368.47.
  • Lender B charges a fixed interest rate of 6.3% with no fees. The total amount payable is £5,334.71.

Although Lender A is advertising a lower interest rate, the total amount payable is higher than Lender B’s deal once the set-up fee is considered. The easiest way to avoid being misled when comparing deals like this is to compare the “total amount payable” or APR of the two deals. These will both take interest and fees into account.

How to compare loans with no fees

As well as comparing the “total amount payable” and APR, have a look at the minimum eligibility criteria. It’s no use applying for the product if you don’t meet the criteria.

Consider the late repayment charges, too. These tend to be punitive, plus there will be added interest – and damage to your credit score. It’s unwise to accept any loan unless you’re certain you can meet the repayments.

Common requirements for getting a personal loan with no upfront fees

Common requirements often listed among lenders’ minimum eligibility criteria include:

  • You’re over 18 years old
  • You have a bank account
  • You have proof of employment or regular income
  • You agree to go through a credit check

Frequently asked questions

Will you be approved?

Check your personalised rates and likelihood of acceptance.
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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