Personal loan statistics: Average interest rates and personal loan debt

Find out what the average interest rate on a personal loan is in the UK.

Personal loans are a type of unsecured loan. This loan is granted based on factors such as a person’s income and credit score rather than being backed by anything concrete.

Brits have been taking out personal loans for decades – to go on a well-deserved holiday, to refurbish their houses, to buy their first cars. But how many people are doing it exactly? And is it more expensive now than it was 15 years ago?

Personal loan statistics: Highlights

  • The average interest rate for a £5,000 personal loan is 11.30% as of November 2023.
  • The average interest rate for a £10,000 personal loan is 7.15% as of November 2023.
  • The average interest rate for a £10,000 loan hit 7.16% in October 2023, the highest APR since at least May 2013.
  • £8,032 was the average personal loan debt for a person who sought advice in 2022, higher than other types of unsecured loans.

What is the average interest rate on a personal loan?

The average interest rate for a £5,000 personal loan is 11.30%, and the average interest rate for a £10,000 personal loan is 7.15% as of November 2023. The interest charged on personal loans has varied wildly over the years, with the interest rates on £10,000 loans being consistently lower than those on £5,000 loans.

Average APR for a £5,000 loan

The average interest rate for a £5,000 personal loan has decreased over the past decade and was 0.47 percentage points lower in November 2023 compared to May 2013, when it was 11.77%. The average interest rate was at its lowest in August 2015, when it was just 7.48%, and it has fluctuated since then.

Since May 2022, the average interest rate on a £5,000 loan has been rising steadily, increasing by 3.16 percentage points from 8.14% in May 2022 to 11.30% in November 2023.

There has been some change in the average interest rate throughout 2023, with rates rising by over 1 percentage point between January and November 2023. The biggest change in the average interest rate for a £5,000 loan in 2023 was between March and April 2023, as it increased from 10.04% to 10.33%.

Month Interest rate
May 2013 11.77
June 2013 11.15
July 2013 10.91
Aug 2013 10.11
Sep 2013 10.3
Oct 2013 10.36
Nov 2013 10.9
Dec 2013 10.08
Jan 2014 9.89
Feb 2014 9.72
March 2014 9.75
April 2014 9.86
May 2014 9.86
June 2014 9.78
July 2014 9.66
Aug 2014 9.68
Sep 2014 9.2
Oct 2014 8.62
Nov 2014 8.82
Dec 2014 8.78
Jan 2015 8.98
Feb 2015 8.79
March 2015 8.78
April 2015 8.97
May 2015 8.91
June 2015 8.82
July 2015 7.87
Aug 2015 7.48
Sep 2015 7.73
Oct 2015 7.77
Nov 2015 8.14
Dec 2015 8.39
Jan 2016 9.11
Feb 2016 8.95
March 2016 9.44
April 2016 9.27
May 2016 9.41
June 2016 9.27
July 2016 9.19
Aug 2016 9.13
Sep 2016 9.59
Oct 2016 9.06
Nov 2016 9.07
Dec 2016 9.49
Jan 2017 9.45
Feb 2017 8.81
March 2017 9.54
April 2017 7.85
May 2017 7.76
June 2017 7.87
July 2017 8.04
Aug 2017 7.91
Sep 2017 8.2
Oct 2017 8.11
Nov 2017 8.34
Dec 2017 8.33
Jan 2018 8.33
Feb 2018 8.04
March 2018 7.98
April 2018 8.14
May 2018 8.04
June 2018 8.09
July 2018 7.76
Aug 2018 7.82
Sep 2018 7.88
Oct 2018 7.74
Nov 2018 7.88
Dec 2018 8.03
Jan 2019 7.98
Feb 2019 7.67
March 2019 7.71
April 2019 7.74
May 2019 7.83
June 2019 7.9
July 2019 7.82
Aug 2019 7.88
Sep 2019 7.8
Oct 2019 7.88
Nov 2019 7.93
Dec 2019 7.92
Jan 2020 7.7
Feb 2020 7.87
March 2020 7.91
April 2020 7.83
May 2020 8.04
June 2020 7.87
July 2020 7.84
Aug 2020 7.97
Sep 2020 7.99
Oct 2020 8.08
Nov 2020 8.17
Dec 2020 8.16
Jan 2021 8.07
Feb 2021 8.1
March 2021 8.12
April 2021 8.02
May 2021 8.07
June 2021 7.95
July 2021 8.02
Aug 2021 7.96
Sep 2021 7.74
Oct 2021 7.74
Nov 2021 7.76
Dec 2021 7.96
Jan 2022 7.82
Feb 2022 7.73
March 2022 7.92
April 2022 8.32
May 2022 8.14
June 2022 8.2
July 2022 8.29
Aug 2022 8.32
Sep 2022 8.4
Oct 2022 9.38
Nov 2022 10.04
Dec 2022 10.19
Jan 2023 10.16
Feb 2023 10.11
March 2023 10.04
April 2023 10.33
May 2023 10.15
Jun 2023 10.19
Jul 2023 10.75
August 2023 11.28
September 2023 11.22
October 2023 11.2
Nov 2023 11.3

Average APR for a £10,000 loan

The average interest rate for a £10,000 loan has increased over the last decade, going from 6.64% in May 2013 to 7.15% in November 2023. The rate in November 2023 marked the highest interest rate since at least May 2013. Meanwhile, the lowest was in September 2020, when the average interest rate was just 3.37%.

Similarly to the interest rate for £5,000 loans, the interest rate for £10,000 loans began to rise significantly in 2022. The average rate increased by 2.07 percentage points from January to December 2022. The average interest rates for 2023 have stayed fairly consistent at the start of the year, with an interest rate of 5.91% in January and 5.85% in May. However, rates jumped by 1.3 percentage points from May 2023 to November 2023.

Month Interest rate
May 2013 6.64
June 2013 6.62
July 2013 6.1
Aug 2013 6.18
Sep 2013 6.13
Oct 2013 6.25
Nov 2013 5.76
Dec 2013 5.74
Jan 2014 5.56
Feb 2014 5.33
March 2014 5.4
April 2014 5.45
May 2014 5.29
June 2014 5.23
July 2014 5.13
Aug 2014 5.12
Sep 2014 4.96
Oct 2014 5.01
Nov 2014 4.92
Dec 2014 4.93
Jan 2015 4.8
Feb 2015 4.51
March 2015 4.41
April 2015 4.34
May 2015 4.33
June 2015 4.28
July 2015 4.25
Aug 2015 4.25
Sep 2015 4.33
Oct 2015 4.37
Nov 2015 4.44
Dec 2015 4.45
Jan 2016 4.29
Feb 2016 4.27
March 2016 4.38
April 2016 4.3
May 2016 4.33
June 2016 4.28
July 2016 4.13
Aug 2016 4.14
Sep 2016 4.11
Oct 2016 3.75
Nov 2016 3.76
Dec 2016 3.74
Jan 2017 3.69
Feb 2017 3.66
March 2017 3.73
April 2017 3.81
May 2017 3.79
June 2017 3.76
July 2017 3.79
Aug 2017 3.79
Sep 2017 3.74
Oct 2017 3.78
Nov 2017 3.81
Dec 2017 3.85
Jan 2018 3.85
Feb 2018 3.82
March 2018 3.8
April 2018 3.81
May 2018 3.73
June 2018 3.83
July 2018 3.76
Aug 2018 3.77
Sep 2018 3.81
Oct 2018 3.77
Nov 2018 3.81
Dec 2018 3.83
Jan 2019 3.73
Feb 2019 3.69
March 2019 3.69
April 2019 3.64
May 2019 3.65
June 2019 3.65
July 2019 3.61
Aug 2019 3.62
Sep 2019 3.61
Oct 2019 3.65
Nov 2019 3.61
Dec 2019 3.6
Jan 2020 3.58
Feb 2020 3.59
March 2020 3.56
April 2020 3.44
May 2020 3.54
June 2020 3.51
July 2020 3.43
Aug 2020 3.41
Sep 2020 3.37
Oct 2020 3.5
Nov 2020 3.6
Dec 2020 3.64
Jan 2021 3.69
Feb 2021 3.73
March 2021 3.7
April 2021 3.66
May 2021 3.63
June 2021 3.6
July 2021 3.8
Aug 2021 3.99
Sep 2021 3.85
Oct 2021 3.89
Nov 2021 3.87
Dec 2021 3.96
Jan 2022 3.94
Feb 2022 3.84
March 2022 3.89
April 2022 4
May 2022 4.02
June 2022 4.13
July 2022 4.18
Aug 2022 4.34
Sep 2022 4.36
Oct 2022 5.22
Nov 2022 5.86
Dec 2022 6.01
Jan 2023 5.91
Feb 2023 5.9
March 2023 5.92
April 2023 5.9
May 2023 5.85
Jun 2023 6.04
Jul 2023 6.5
August 2023 6.88
September 2023 6.91
October 2023 7.16
Nov 2023 7.15

What is the average personal loan debt in the UK?

The average personal loan debt for a person who sought debt advice in 2022 was £8,032. Compared to other types of unsecured debt, the average amount of debt owed was much higher.

Credit card debt was the second highest form of debt in 2022, as the average person seeking advice owed over £6,500 worth of credit card debt. There was also unsecured debt owed for things like payday loans, store credit cards or overdrafts, with the average amount owed for these over £1,000.

Loan Debt
Personal loan 8,032
Credit card 6,514
Catalogue 1,813
Overdraft 1,441
Payday loan 1,318
Store card 1,112

Personal loan write-offs

In the third quarter of 2023, nearly £300 million was written off in personal loan debt, which is a 101% decrease from the beginning of 2017, when only £149 million was written off in personal loan debt.

The highest value of personal loan write-offs happened in the third quarter of 2019, with £456 million of debt written off. The lowest amount during the period from 2017 to 2022 was in the second quarter of 2017, as only £136 million was written off.

2019 had the highest value of personal loan write-offs in a single year during the period from 2017-2021, as £1,583 million was written off. The lowest value of personal loans written off was in 2017, as only £610 million was written off.

Quarters Amount written off (£ mills)
Q1 2017 149
Q2 2017 136
Q3 2017 185
Q4 2017 140
Q1 2018 228
Q2 2018 282
Q3 2018 342
Q4 2018 305
Q1 2019 341
Q2 2019 353
Q3 2019 456
Q4 2019 433
Q1 2020 386
Q2 2020 279
Q3 2020 264
Q4 2020 340
Q1 2021 320
Q2 2021 354
Q3 2021 388
Q4 2021 266
Q1 2022 272
Q2 2022 219
Q3 2022 270

Sources used

  • The Bank of England
  • Statista
  • Step Change
Click here for more research. For all media enquiries, please contact:

Matt Mckenna
Head of UK communications
T: +44 20 8191 8806
matt.mckenna@finder.com@MichHutchison/in/matthewmckenna2


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