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Best personal loans 2025
Our experts scour the market regularly to find you the best loan rates with the best customer service.
The best unsecured personal loan APR currently available is 5.8%. 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.
| Personal loan | Customers who’d recommend | Details |
|---|---|---|
| Nationwide | 93% | Nationwide, the world’s largest building society, provides straightforward fixed-rate loans up to £50,000 to “members” (existing mortgage, savings or current account customers). Rates are impressively low but you need very good credit to get approved. |
| Shawbrook | 93% | Shawbrook is a specialist bank offering an alternative to traditional high-street lenders, working directly with both consumers and through a broker network. |
| The AA | 90% | The AA is a broker offering fixed monthly repayments on its loans. It’s not currently taking new customers. |
| Tesco Bank | 90% | Tesco Bank offers unsecured personal loans at some very competitive rates. |
| Halifax | 90% | Halifax is part of Lloyds Banking Group along with Bank of Scotland and MBNA. It offers very standard (but straightforward), fixed-rate personal loans. |
| NatWest | 90% | NatWest offers personal loans tailored for existing customers with good or excellent credit. |
| Barclays | 90% | Barclays offers unsecured loans to Barclays customers with a range of terms depending on circumstances. |
| Abound (formerly Fintern) | 87% | Abound promises to offer competitive, personalised loans that are calculated on your ability to repay and not your credit score. |
| Sainsbury’s Bank | 87% | Sainsbury’s Bank offered a range of loans for Nectar card holders. The bank is no longer taking new applications and has passed its loans over to NatWest. |
| MBNA | 87% | MBNA offers personal loans as a broker, with Lloyds Bank as the lender. As you might expect from a Lloyds brand, its rates are competitive… But these are loans for people with excellent credit. |
| HSBC UK | 87% | HSBC offers competitive rates on personal loans and you can overpay without paying an extra fee. |
| Zopa | 83% | Zopa was founded in 2004 and offers unsecured loans, which are based on creditworthiness. |
| Virgin Money | 83% | Virgin Money launched its first unsecured personal loans in 2020, with instant decisions and quick funding. |
| Santander | 83% | Santander offers new and existing customers unsecured personal loans. |
| Monzo | 83% | Monzo offers loans with fixed monthly repayments, same-day funding and flexible amounts. As you might expect, everything’s done in the app. |
| TSB | 80% | TSB offers fixed-rate unsecured loans to both existing and new customers with good credit. |
| Novuna | 80% | Novuna offers fixed-rate personal loans with a simple application process and quick payment times. |
| Admiral | 80% | Better known for its insurance services, Admiral also provides straightforward unsecured loans. |
| RateSetter | 77% | RateSetter was a marketplace where people looking to borrow were matched up with those who wanted to invest. It’s no longer accepting new applications and has been folded into Metro Bank. |
| AIB | 77% | AIB differs from some competitors – under its “fairness guarantee”, the rate you’re quoted when you apply will be the one you get. |
| M&S Bank | 73% | M&S Bank is part of HSBC UK and loans from the two brands are very similar, although the rates can differ slightly. M&S Bank loan rates are often good enough to see them top comparison tables, but you need excellent credit to get approved. |
| Lendable | 70% | Most people don’t go looking for a Lendable loan. Lendable gets suggested to them when they check their eligibility on a comparison site. The rates aren’t the best on the market, but that’s because it aims to cater to people who don’t have a great credit score. |
| Post Office | 67% | Post Office loans are provided by Lendable. If there’s one thing the Post Office loves, it’s leveraging the trust people have in its long-standing brand to resell them services from other companies. |
| 118 118 Money | 64% | Yes, the chaps in the shorts. 118 118 Money focuses on smaller loans and targets those with not-so-perfect credit histories. As such its interest rates are – and there’s no other way to put it – really high. |
| Finio Loans (formerly Likely Loans) | 63% | Finio Loans specialises in loans for people who don’t have a great credit history. So its rates are higher than e.g. high street banks. It’s a sister company of Likely Loans (which no longer accepts applications). |
Best personal loan rates for December 2025
| Rank | Product | Representative APR |
|---|---|---|
| 1 | M&S Bank Personal Loan | 5.8% |
| 2 | First Direct Personal Loan | 5.8% |
| 3 | Tesco Bank Personal Loan (Clubcard) | 5.8% |
| 4 | Nationwide Building Society Personal Loan | 5.8% |
| 5 | HSBC Premier Loan | 5.9% |
| 6 | TSB Personal Loan | 5.9% |
| 7 | Barclays Premier Barclayloan | 5.9% |
| 8 | Santander Personal Loan | 5.9% |
| 9 | Halifax Personal Loan | 6.1% |
| 10 | Lloyds Bank Personal Loan | 6.1% |
| 11 | Bank of Scotland Personal Loan | 6.1% |
| 12 | Tesco Bank Personal Loan (Non-Clubcard) | 6.2% |
| 13 | Barclays Barclayloan | 6.2% |
| 14 | Novuna Personal Loan | 6.3% |
| 15 | HSBC Personal Loan | 6.4% |
| 16 | AA Personal Loan Member | 6.4% |
| 17 | AA Personal Loan | 6.5% |
| 18 | NatWest Personal Loan | 6.6% |
| 19 | Royal Bank of Scotland Personal Loan | 6.6% |
| 20 | Royal Bank of Scotland Home Improvements Loan | 6.6% |
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
| Rank | Product | Finder score |
|---|---|---|
| 1 | Zopa Bank Personal Loan | 9.2/10 |
| 2 | NatWest Personal Loan | 9.1/10 |
| 3 | Royal Bank of Scotland Personal Loan | 9.1/10 |
| 4 | HSBC Premier Loan | 8.9/10 |
| 5 | M&S Bank Personal Loan | 8.3/10 |
| 6 | Lendable Personal Loan | 8/10 |
| 7 | First Direct Personal Loan | 7.9/10 |
| 8 | HSBC Personal Loan | 7.6/10 |
| 9 | Shawbrook Bank Personal Loan | 7.5/10 |
| 10 | Norwich Trust Personal Loan | 7.5/10 |
Our top personal loans of 2025 by category
- Novuna Best good credit personal loan
- Abound (formerly Fintern) Best bad credit personal loan
- Guarantor My Loan Best guarantor loan
- Norwich Trust Best homeowner loan
- Tesco Bank (Clubcard Personal Loan) Best fast personal loan
- Santander Best personal loan for pensioners/retired people
- Finio Best personal loan for students/young people
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 below 10% if you have a top-notch credit score.
Novuna Personal Loan
6.3%
APR representative
£35,000
Max loan
2-7 years
Loan terms
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.
- Competitive interest rates
- Fixed-rate monthly payments
- Choose the monthly repayment date
- Instant credit decision
- Receive money within 2 working days
- Pre-approved loans unavailable
- Good credit history only
| Age | 21 or over |
|---|---|
| Minimum income | £10,000 |
| Credit ratings | Good |
| Soft credit search | No |
| Joint applications | No |
| Instant decision | Yes |
| Repayment frequency | Monthly |
Representative Example: Representative 6.3% APR fixed. Based on a loan of £7,500 for 60 months at 6.3% p.a. Total £8,725.2 repayable at £145.42 per month.
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
21.8%
APR representative
£12,000
Max loan
1-5 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
| Minimum income | £0 |
|---|---|
| Credit ratings | Fair |
| Soft credit search | Yes |
| Joint applications | No |
| Instant decision | Yes |
| Repayment frequency | Monthly |
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.
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.
Tesco Bank Personal Loan (Clubcard)
5.8%
APR representative
£35,000
Max loan
1-10 years
Loan terms
The Tesco Bank Clubcard Personal Loan can provide same-day funds to approved applicants, with loan amounts ranging from £3,000 to £35,000.
- Same-day funds
- Competitive rates
- Take a payment holiday
- 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
| Age | 18 or over |
|---|---|
| Minimum income | £0 |
| Credit ratings | Good |
| Soft credit search | Yes |
| Joint applications | Yes |
| Instant decision | Yes |
| Repayment frequency | Monthly |
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.
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.
Guarantormyloan Guarantor Loan
49.9%
APR representative
£12,500
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.
- No upfront fees
- Not only limited to mortgage holders
- Rates are high compared to alternative
- High eligibility requirements
- Fees for paying loan off early
| Age | 18 or over |
|---|---|
| Minimum income | £0 |
| Credit ratings | Poor |
| Soft credit search | No |
| Joint applications | No |
| Instant decision | Yes |
| Repayment frequency | Weekly, Fortnightly |
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.
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.
Norwich Trust Personal Loan
34.9%
APR representative
£20,000
Max loan
3-10 years
Loan terms
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.
- Available to those with limited credit
- Cashback incentive
- Flexible loan terms
- Large service fee
- Late payment fees
| Age | 21 to 70 |
|---|---|
| Minimum income | £15,600 |
| Credit ratings | Poor or Fair |
| Soft credit search | Yes |
| Joint applications | No |
| Instant decision | No |
| Repayment frequency | Monthly |
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.
Best personal loan for pensioners/retired people
Most major UK lenders offer personal loans if you’re a pensioner or retired. Some lenders also offer specialised types of loans that are designed for older homeowners. Although options may be a little more limited compared to someone who is earning a regular salary, lenders still recognise that retired people may make good candidates for a loan if they meet other criteria. Our experts have chosen the best personal loan for pensioners/retired people on the market for December 2025.
Santander Personal Loan
5.9%
APR representative
£25,000
Max loan
1-5 years
Loan terms
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).
- Same-day funding available
- Low rates
- Fixed monthly payments
- No set-up or arrangement fees
- Overpayments allowed
- Same day funding only available in branch
- You'll need a good credit score to apply
| Age | 21 or over |
|---|---|
| Minimum income | £10,500 |
| Credit ratings | Good |
| Soft credit search | Yes |
| Joint applications | Yes |
| Instant decision | Yes |
| Repayment frequency | Monthly |
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.
Best personal loan for young people
Getting a first time loan as a young person may be more difficult than simply applying and getting approved, however, there are lenders on the market that try and make the borrowing process as simple as possible. Our experts have chosen the best personal loan for young people on the market that does just that.
Finio Loans Personal Loan
39.9%
APR representative
£5,000
Max loan
1-3 years
Loan terms
Part of Oakbrook and formerly known as Likely Loans, Finio offers small loans and doesn't expect tip-top credit records.
- Decisions in minutes
- No guarantor needed
- Supportive service
- Not the lowest APRs you'll see on the market
| Age | 18 to 73 |
|---|---|
| Minimum income | £0 |
| Credit ratings | Poor or Fair or Good |
| Soft credit search | Yes |
| Joint applications | No |
| Instant decision | Yes |
| Repayment frequency | Monthly |
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.
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."
How to choose the best personal loan
- 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.
- 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.
- 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.
- 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.
- 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.
Sources
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 is provided by Defaqto. In other cases, Finder has sourced data directly from providers.
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