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£1,500 loan

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Why get a £1,500 loan?

If life throws a spanner in the works and leaves you with an unexpected bill, a £1,500 loan could help you to fix the problem.

From a roof repair to a replacement kitchen appliance, or cash to put towards a home renovation or new car, a small loan can be a speedy way to get your hands on what you need. But you should only take one out if you’re confident you can pay it off in full and on time.

What types of £1,500 loan are there?

There are several types of loan available if you need to borrow £1,500, including:

Personal loans – monthly repayments are usually fixed over a period of one to five years. Personal loans are a type of unsecured loan where you don’t have to borrow against an asset such as your home.
Car loans – car finance can take several forms, including an unsecured personal loan and a hire purchase loan. Car loans are secured against the vehicle you’re buying. If you regularly miss payments and don't keep your car finance lender up to date, you could see your car repossessed.
Guarantor loans – if you're struggling to get approved for a loan, perhaps due to a low or non-existent credit rating, a friend or family member could act as your guarantor. This means they're liable to cover the repayments on your guarantor loan if you don't make them.
Payday loans – payday loans can give you a quick cash fix in an emergency, but usually have very high interest rates so should be treated with caution.
Credit union loans – a credit union is a co-operative where members pool their savings to lend to one another. Eligibility criteria for this type of loan might involve living in a local area, working in a particular industry or belonging to a particular church. And sometimes you may have to become a member and pay a membership fee.

What is the interest rate on a £1,500 loan?

A small loan of £1,500 will generally have a higher interest rate than one for a larger sum of money.

For example, when we looked in April 2025, we found £1,500 loans at around 13% APR and upwards. But we found £10,000 loans from around 6.5% APR.

This is partly because, from a lender’s point of view, those looking to borrow small amounts of money pose a bigger risk. Why? If you need to take out a small loan, this suggests you don’t have any savings to fall back on – plus the loan isn’t secured against any assets.

The interest rate on a personal loan is usually displayed as an annual percentage rate (APR). This shows the total cost of borrowing over a year as a percentage, including any fees.

Loan providers will often advertise the ‘representative APR’. But while this is useful for comparing loans, it’s not necessarily the rate you’ll get.

The representative APR is the rate that at least 51% of successful applicants must be offered. However, this means the rest could be given a higher rate of interest.

Some lenders now offer guaranteed loan rates. This means you’ll definitely secure this rate of interest if you’re accepted for the loan, and you’ll know exactly how much the loan will cost to repay.

The lender will decide what guaranteed rate to offer you using your credit score and the financial information you supply when applying to see if you’re eligible for the loan. But you won’t know for sure whether you’ll actually be offered the loan until you apply, as it’s only then that the lender runs the ‘hard’ credit check which gives them all the info they need to make a final decision.

Find out more about APR and why it matters.

How much does a £1,500 loan cost?

This varies depending on the APR but also how long you plan to take to repay the loan. The longer you take, the more you’ll pay in interest.

Initial loan	Time to repay	APR	Monthly repayments	Total repayments
£1,500	12 months	13.5%	£133.79	£1,605.48
£1,500	24 months	13.5%	£71.12	£1,706.88

The general rule is to borrow as little as possible and pay it back as quickly as possible. You can use our free loan calculator to work out how much you might need to repay each month if you take out a £1,500 loan.

How long will it take to repay a £1,500 loan?

Smaller personal loans are typically repaid over a period of 12 months to five years. But watch out for the interest if you choose a longer period.

While taking more time to repay your loan reduces the size of your monthly payments, you can end up paying much more overall because of the extra interest that builds up.

Loans calculator

If you’re thinking about taking out a loan, use our loans calculator to work out how much you can afford to borrow and what it’ll cost each month.

Use our loan calculator

When will I get my loan?

Some lenders will send the money to your bank account on the same day your loan application is accepted. Others may take a few days.

Can I pay off my £1,500 loan early?

Yes, most loans can be paid back early or you can make a partial overpayment – however, the lender may charge you for doing this.

If you want to make a partial overpayment, then a 28-day notice period applies. This means you’ll be charged interest on the full amount you owe for 28 days after you notify your lender of an extra payment.

If you want to pay off your loan in full, you’ll need to ask your lender for an ‘early settlement amount’. When you do this, the lender will recalculate what you owe based on:

what you’ve already paid and the amount you still owe
the interest charges that apply
whether there are any early payment fees.

Your lender must give you this figure if you ask for it and give you at least 28 days to think it over.

If you decide to go ahead, you’ll need to pay the outstanding early settlement amount by the date the lender has given you, otherwise it will need to be recalculated.

You don’t have to pay off the loan if you decide you’d be better off continuing with your monthly instalments.

Frequently asked questions

How do I apply for a £1,500 loan?

We can help you compare loans and find any you may be eligible for. You’ll need to be a UK resident aged 18 or over.

Once you’ve found the right loan for you, you can start the application process by filling in an online application form.

Will I need a credit check to borrow £1,500?

Yes, any loan amount you borrow will require a ‘hard credit check’ from the potential lender. If you pass the credit check, you’ll receive your loan offer.

A credit search allows lenders to review your credit history to find out how responsible you’ve been with money in the past.

A good way to check if you’re eligible for a loan is to use a loans eligibility checker. These use a ‘soft credit check’ rather than a ‘hard credit check’ to find which loans you’re likely to be accepted for, before you submit your formal loan application.

Can I get a £1,500 loan with bad credit?

A poor credit score doesn’t automatically mean you’ll be refused a loan, but your choices may be limited.

You might have a poor credit rating if you've fallen behind on payments, been declared bankrupt or received a CCJ (county court judgment). This is a court order that's registered against someone for not making payments on money they owe.

If this is the case, then usually a bad credit loan can be the easiest way to gain access to funds. But it’s likely you’ll pay a much higher rate of interest than someone with a good credit score.

Of course, repaying your loan for £1,500 on time can be a good way to boost your poor credit score.

Are there other ways to borrow £1,500?

Before you apply for a loan for £1,500, you might want to consider these alternatives first:

0% purchase credit card – this lets you spend without having to pay interest on your purchases for a set period. Just make sure you pay off the full balance before the 0% period ends as the APR is likely to shoot up after that.
Arranged overdraft – your bank may be willing to offer you an arranged overdraft. This lets you borrow money through your current account by spending more than you have in the account. You’ll need to get in touch with your bank to find out what rate of interest may be on offer.
Asking family or friends for help - you may avoid paying interest this way but it‘s always worth agreeing on how you’ll pay back the money, and by when, to avoid potential difficulties.