Loans

Find and compare cheap loans - rates from 5.9%

Search deals with rates from 5.9% APR (representative 10.3% APR^)

Compare loansSign in to your account

Easily check your eligibility

See which loans you could get without harming your credit score

Get quick results from trusted providers

Compare loans from 48 FCA-regulated lenders in minutes1

Loans made simples with AutoSergei

Skip the scrolling and discover AutoSergei's top loan deals for you

^Representative example: Borrowing £7,500 over 48 months on a personal loan at a fixed interest rate of 10.3% p.a. results in monthly payments of £191.30 and a total repayable of £9,182.48. Representative 10.3% APR (fixed). Correct as of September 2026.

We’re the UK’s most used price comparison site2

4.9/5Excellent

We only compare loans from trusted lenders

We offer loans from FCA-regulated providers including:

See all loan providers

What is a loan?

A loan is a lump sum of money that you borrow from a lender. When you take out a loan you agree to pay back what you borrow, plus interest, in monthly instalments over an agreed period until the loan is paid off.

The interest on a loan is worked out as a percentage of the loan balance and added to the monthly repayments. Lenders decide what interest rate to charge you based on factors including your credit score and how long you’ll take to pay back the loan.

A loan could be useful if you need to borrow a larger amount of money upfront than you could get through other types of borrowing.

Our cheapest loan rates

Compare loan rates from our panel and discover some of our cheapest loans available. This table focuses on £7,500-£15,000 loans as this is the most commonly borrowed amount. Some of the products in the table will also be available for larger loans.

The APR you’re offered could be higher than what you see advertised. Always check your eligibility and the T&Cs before applying.

Last updated 23 October 2026

  • M&S Bank loans: 5.9% rep APR

    Representative APR**

    5.9%

    Loan amount

    £7,500-£25,000

    Repayment period

    1-7 years

    Check eligibility
    What you should know

    • Must be aged 18 or over; minimum annual income £10,000

    Representative example – based on a loan of £10,000 at 5.9% per annum fixed (representative 5.9% APR), total amount repayable would be £11,529 at £192.15 per month for 60 months

  • Nationwide loans: 5.9% rep APR

    Representative APR**

    5.9%

    Loan amount

    £7,500-£25,000

    Repayment period

    1-5 years

    Check eligibility
    What you should know

    • Must be aged 18 or over and have held a Nationwide current account, savings account or mortgage for at least 14 days

    • Minimum monthly income £700 after tax

    Representative example – based on a loan of £10,000 at 5.9% per annum fixed (representative 5.9% APR), total amount repayable would be £11,529 at £192.15 per month for 60 months

  • The AA loans: 5.9% rep APR for members

    Representative APR**

    5.9%

    Loan amount

    £7,500-£19,999

    Repayment period

    1-8 years

    Check eligibility
    What you should know

    • 5.9% APR for AA breakdown members and insurance customers; 6.4% APR for non-members (rep example is based on 5.9%)

    • Must be aged 18 or over and a UK resident with a UK address

    • Must not have been declared bankrupt in the past 6 years or applied for a loan with The AA or NatWest in the past 28 days

    Representative example – based on a loan of £10,000 at 5.9% per annum fixed (representative 5.9% APR), total amount repayable would be £11,529.00 at £192.15 per month for 60 months

Compare the Market Limited acts as a credit broker, not a lender. To apply you must be a UK resident and aged 18 or over unless otherwise stated. Credit is subject to status and eligibility.

**Representative APR: at least 51% of successful applicants must get this rate; others may have to pay a higher rate.

Try our loan calculator

What do you want to check?

Please select an option

£

Please enter a valid amount between £1 and £10,000,000

£

Please enter a valid amount between £1 and £10,000,000

The longer the loan term, the less you'll pay each month – but the more you'll pay in interest overall.

Please select a loan term

What is APR?

APR stands for annual percentage rate and shows the total cost of borrowing money over a year.

Please enter 5% or higher

%

Please enter a value between 5% and 99.9%

£

Loan amount

£

Interest payments

£

See loans available to you

  • Find loans without harming your credit score
  • Understand your chance of approval before applying
Find a loan

These results are for illustrative purposes only. The interest rate, loan sum and terms you're offered will depend on your personal circumstances and lender criteria.

Total amount you'll pay

£

£

Loan term

Compare with other repayment lengths and APRs

Loan termMonthly repaymentsTotal repayable

What loan rates could I get?

The loan rate you're offered will depend on factors such as your credit score, income, borrowing amount and repayment term.

You might not get the rate you see advertised (known as the 'representative APR'). Lenders look at your finances to decide your personalised rate.

Representative APR vs personalised APR

Representative APR

Personalised APR

The headline rate shown in adverts and comparison tables

The actual rate you’re offered

This rate or better must be offered to at least 51% of successful applicants

Could be higher than the rep APR depending on your credit score, income, how much you want to borrow and how long for

Useful for quick comparisons

Better for seeing what a loan could cost you personally

Why does loan size matter?

Lenders often price loans in bands. That means loans of £10,000 or £15,000 may have lower rates than smaller loans.

  • Some of the most competitive rates are often on loans from around £7,500 upwards

  • It's important to look at the total cost of the loan – a £10,000 loan may have a lower APR than a £7,500 loan, but you’ll be paying interest on a larger amount. 

Start comparing loans

What do I need to know before applying for a loan?

Watch our video to find out more about how loans work, what lenders look for in an application and what borrowing really costs.

This video is hosted by YouTube. By pressing play, you consent to their use of cookies. See their cookie policyfor more information.
Text transcript

Thinking about taking out a loan? Here’s some things you should know before you apply, not after. I’m Charlie from Compare the Market, and I think it’s best you know these things up front. So, let’s get into it.

Firstly, the simple things. What is a loan? A loan is a form of borrowing a fixed amount of money over a fixed term with fixed monthly payments. It’s not the same as a credit card where your balance can go up and down each month, and you can change how much you’re paying back with no set end date.

With a loan, you know exactly how much you’re paying back over an exact period. That helps you plan around it.

Interest is what the bank charges you for borrowing money from them. The interest rate you get from the bank will depend on the loan you’re looking at, but also your financial situation, your income, your expenditure, your spending habits, for example.

If you want to know the true cost of borrowing, look at the annual percentage rate, also known as the APR. This shows you the interest rate and any other fees that are included from the bank that you have to pay back. Lenders want to look at your credit history, your income, and your job.

All these factors have an influence. A lender will also want to look at your existing debts and how you’re paying those back. They’ll want to understand if they’re going to lend to you that you’re going to be able to make the repayments to them as well. A lender will also want to confirm who you are. They’ll want to check your address history and also make sure they can see that you’re on the electoral roll.

Secured loans could come with lower interest rates and could be easy to get approved for, but the lender could also take your home as that’s what you use as security. Make sure that you can always make the repayments on the monthly basis before you apply.

Unsecured loans, also known as personal loans, are more common. The benefit of these is you don’t have to use anything as security to apply for the loan.

The first mistake I see is people applying directly to lenders for several loans at the same time. This generates hard searches on your credit file which lenders can see. If they see these markers on your credit file, they might be reluctant to lend to you.

The best thing to do is use an eligibility checker like the one we have on Compare the Market. This generates a soft search which lenders can’t see and shows you your eligibility for loans.

Another mistake I see is people getting their details wrong on the application. This might be the wrong address, the wrong name, or even a typo.

This might seem minor, but these details make all the difference when trying to get accepted for a loan. A loan can be a genuinely useful tool, but only if you know what it costs and if you can comfortably afford it. There’s a lot to cover in loans, so we’re going to get through it in this series. If you want more information, follow our channel or have a look on comparethemarket.com

What are the different types of loans?

The best type of loan for you will, of course, depend on your personal situation and what you need the cash for – but these are some of the main types you can choose from:

Check eligibility
Unlocked padlock with cross icon

Personal loan

With a personal loan (also known as an unsecured loan), you can borrow without putting up an asset as security.

Personal loans typically range from £1,000 to £25,000, but you can compare personal loans of up to £50,000 with Compare the Market.

Locked padlock with tick icon

Secured loan

With a secured loan, you need to offer an asset as security. In the case of a homeowner loan, that’s your house. If it’s a secured car loan, it’s your car. Your home may be repossessed if you do not keep up repayments on a loan that is secured against it.

Clock icon

Small, short-term loan

A small loan is often paid back over a short period of time, usually within a year. You can typically borrow up to £3,000.

Pound sign in circle icon

Bad credit loan

A bad credit loan is specifically aimed at borrowers with a poor credit score or no credit history. This type of loan usually has a higher interest rate and tighter restrictions, such as a lower borrowing limit.

People icon

Guarantor loans

A guarantor loan involves someone agreeing to make the loan repayments if you can’t. This could be an option if you have bad credit or no credit history.

You can’t compare guarantor loans with Compare the Market.

Check eligibility

What other types of loans are available?

Some loans are designed for specific situations, such as studying at university or borrowing from individual lenders rather than a bank.

Peer-to-peer loans

With a peer-to-peer loan, you borrow money from an individual or a group of people instead of a bank.

Peer-to-peer websites connect you with people willing to lend to you, then act as intermediaries.

You can’t compare peer-to-peer loans with Compare the Market.

Loans for students

While you need to apply direct to the Student Loans Company for an official 'student loan’, there are other borrowing options for students too.

A loan could help with living costs or larger expenses, such as buying a car.

Find out more in our guide to loans for students.

Loans for unemployed people

Being out of work doesn’t necessarily mean you can’t get a loan, although you may have fewer options and be charged a high rate of interest.

Read more on loans for unemployed people.

What can I use a loan for?

You can take out a loan to cover all kinds of costs, as well as to consolidate existing debts, but there are some exceptions.

You COULD use a loan for...

  • Unexpected bills, such as emergency repairs to your car

  • Home renovations

  • A holiday – a personal loan could top up your savings if you’re off on the trip of a lifetime

  • A wedding

  • A car

  • Consolidating your debt – you could clear multiple debts with one loan, ending up with a single monthly repayment

  • Paying for a new home while you wait for your old one to sell (a bridging loan)

You CAN’T use a loan for...

  • Gambling

  • A house deposit

  • Investments, such as stocks and shares

  • Starting a business – instead, you could consider a government-backed Start Up loan, a business loan or a peer-to-peer loan

  • Any illegal activity

Did you know?

29% of people who apply for a loan through Compare the Market want to consolidate debt.

Buying a car is the second most popular reason at 25%, while 18% of borrowers are funding home improvements4.

Do I need a good credit rating to get a loan?

Not necessarily. While a good credit score means you're more likely to be accepted for a loan, some lenders may still offer loans if your credit history isn't perfect.

A strong credit score shows lenders you're responsible with money and have a history of borrowing and repaying debts. This is why people with the best credit scores tend to get the best loan rates.

But having a bad credit score doesn’t mean you’ll always be refused a loan. There are bad credit loans designed for people with a poor credit history, but you’ll probably pay a higher interest rate and have fewer borrowing options.

What’s considered a poor credit score?

There are three main credit reference agencies (CRAs) in the UK: Equifax, Experian and TransUnion. Each uses different scoring criteria and ranges. Experian and TransUnion use the term ‘low’ rather than poor. (Table last checked 14 October 2026.)

Credit score

Equifax

Experian

TransUnion

Very low

-

-

0-487

Poor/low

0-438

0-640

488-562

Fair

439-530

641-860

563-652

Good

531-670

861-1,000

653-785

Very good

671-810

1,001-1,120

-

Excellent

811-1,000

1,121-1,250

786-999

Read more on credit scores and how they work.

How much will my loan cost?

The cost of a loan depends on:

  • Your credit score – this shows how well you’ve managed borrowing in the past. Lenders use it to help decide whether to offer you credit and what APR to charge

  • Your income – how much you earn

  • The loan amount – it’s generally best to borrow only what you need. The more you borrow, the more interest you’ll pay overall

  • The loan term (length of time you repay it over) – the longer the term, the more interest you’ll pay in total, although your monthly repayments may be lower

  • Affordability – whether the repayments look manageable alongside other costs.

Use our loan calculator to work out how much a loan could cost you.

How the loan term affects your repayments

Repaying over a longer term means smaller monthly payments but more interest overall.

Here’s how a £5,000 fixed-rate personal loan compares when repaid over 2, 3 or 4 years, assuming no extra fees (based on Compare the Market's representative 10.3% APR^).

Loan term

Monthly repayment

Total interest

Total amount repayable

2 years

£230.36

£528.73

£5,528.73

3 years

£160.97

£794.88

£5,794.88

4 years

£126.44

£1,069.00

£6,069.00

Illustrative example: Priya’s bathroom loan

Priya needs £5,000 for a new bathroom. She has savings but wants to keep an emergency buffer, so she’s considering a personal loan. She has a job and a fair-to-good credit score, and can afford to set aside around £200 a month. 

Monthly repayments on a two-year loan would cost more than her £200 budget. Borrowing over four years would give her the cheapest monthly payments but cost about £540 more in interest than a two-year loan (£6,069 vs £5,529).

She picks a three-year term as a compromise: manageable repayments at £161 per month (10.3% rep APR^, assuming she qualifies) and around £795 in total interest.

^Representative example: Borrowing £7,500 over 48 months on a personal loan at a fixed interest rate of 10.3% p.a. results in monthly payments of £191.30 and a total repayable of £9,182.48. Representative 10.3% APR (fixed). Correct as of September 2026.

Pros and cons of personal loans

If you think a personal loan could be right for you, here are some advantages and disadvantages to weigh up first.

Advantages of personal loans

Flexible terms

You can choose how much you want to borrow and how long you'll take to repay. However, whether your application is accepted will depend on your credit score – use our eligibility checker to see what terms you could get.

Fixed repayments

Personal loan interest rates are usually fixed. This means you’ll repay a set amount each month, making it easier to budget.

Quick and easy to apply

You can often apply for personal loans online. If you’re approved, the lender will usually deposit the money into your account within a few days (or even a few hours if you’re already a customer).

Disadvantages of personal loans

Long-term commitment

If you take out a loan but later lose your job and struggle to find work, you could find it hard to meet your repayments.

You might not get the advertised rate

Lenders only have to offer the representative APR to 51% of customers. The rate you’re offered could be higher depending on factors including your credit score.

Penalties if you default

A loan commits you to monthly repayments, and fines for late or non-payment are added to the loan, pushing you further into debt. A default is when the lender closes your account because you’ve missed payments. It will be visible on your credit file and could make it harder for you to get credit in the future.

Start comparing loans

Maximise your chances of getting a loan

To be approved for any UK loan you’ll need to pass a credit check, where the lender looks at your income and financial history.

Here’s how you could improve your chances of being approved for a loan.

Try our eligibility checker

Improve your credit score

Check your credit report is error-free. A good credit score can also help you access the best loan rates.

Work out whether you can afford the repayments

Use our loan calculator to get an idea of how much your repayments might be. You can adjust the amount of the loan, its length, APR and potential monthly repayments to weigh up affordability.

Check your eligibility

When you compare loans with us, we’ll show you which loans you’re likely to be accepted for. Our loan comparison service uses a soft credit check, so your credit score won't be affected.

Try our eligibility checker
Charlie Evans

What our expert says...

“Before applying for a loan, take a few minutes to make sure it’s right for your budget. Check what the repayments will be each month, how much you’ll pay back overall and whether you could still afford the loan if your circumstances changed. It’s also worth checking your credit report for any mistakes.

“A little preparation can improve your chances of being accepted and help you borrow with confidence.”

Charlie Evans, Personal finance expert

What are the alternatives to a loan?

If a loan doesn’t feel right for you, one of these options might work.

Credit card icon
Car icon
Hand with bank note icon
Calendar with stack of coins icon
Cash with arrows icon

Am I eligible for a loan?

Typically, you’ll have to:

  • Be at least 18

  • Have a regular income (some lenders have a minimum income requirement too)

  • Be on the electoral register

  • Have a bank account.

Read our guide on how to get a loan for more information.

Learn more about loans

Compare different types, see how borrowing works and what to consider before you apply

A couple are at desk talking to a loan adviser
Applying & eligibility
How to apply for a loan
See what lenders may ask for and how long a loan application can take
Understanding loans
Different types of loans
Explore options to suit your budget and borrowing plans
Small loans
Understand how they work and what you'll need to apply
Bad credit loans
Understand how they work and check if you're eligible
View all loans guides

Personal loan calculator

Estimate monthly repayments and compare loan costs over time

Loan eligibility checker

Check which loans and rates you could be offered before you apply

Car finance calculator

Estimate your payments and see how much you could borrow

FAQs

How quickly can I get a loan?

How long it takes to get a loan depends on the lender, its application and approvals process, and the type of loan you’re applying for.

When you apply for a loan, lenders check your credit score and review your application. This could take anything from a few hours to a week or more. Once you’re approved, many lenders can have the funds in your account within a few days. Some even say the same day, if your application is accepted.

Some lenders offer fast turnaround times – for payday loans, for example. But these types of loans tend to be very expensive compared to other types of borrowing.

You can’t compare payday loans with Compare the Market.

How long can I borrow for?

It depends on the provider and the type of loan you take out:

Unsecured personal loans are typically paid back over one to 10 years.

Secured loans are often longer-term loans, which can sometimes be paid back over as long as 25-40 years.

Our data shows that the average length of a home improvement loan is 58 months. For debt consolidation the average is 57 months, while a loan used to pay for a wedding is paid back over an average of 52 months4.

Will searching for a loan affect my credit rating?

Searching for a loan with Compare the Market won’t affect your credit rating. But each formal application you make for credit will be marked on your credit file.

If you make several applications over a short period, lenders could see this as a sign that you’re in desperate need of a loan or that you’re taking on more debt than you can afford.

Can I get a loan for a house deposit?

Usually not. Most personal loan providers don’t let you use the money for a house deposit, and many mortgage lenders will reject your application if your deposit is funded by a personal loan.

Mortgage lenders carefully assess your affordability to make sure you can afford the repayments on your home. If you’re paying interest on a loan for the deposit on top of your mortgage repayments, you’ll likely be considered higher risk. That means if you are accepted for a mortgage, it’s likely to be more expensive.

What’s the difference between secured and unsecured loans?

With a secured loan, you need to use a valuable asset – usually your home – as security to borrow money. You don’t have to offer up anything as security for an unsecured loan.

Your home may be repossessed if you do not keep up repayments on a loan that is secured against it. This makes an unsecured loan less of a risk for you, but for the lender it's the opposite. To reflect this, you can usually borrow less with an unsecured loan and it’s typically repaid over a shorter period.

Read more on the differences between unsecured and secured loans.

What is APR?

APR represents the cost of borrowing over 12 months. It includes any fees that come with the loan and the interest payable. APR stands for annual percentage rate.

If you have a loan with a variable APR and the Bank of England base rate increases, so could your APR. If this happens, your loan repayments will become higher.

If you have a fixed-rate loan the APR will remain the same, even if the base rate goes up.

What is a representative example?

A representative example shows how much borrowing could cost. It includes the representative APR and must be shown in loan adverts that include an interest rate or other cost figures.

But it only needs to be offered to 51% of successful applicants, so the rate you actually get could be more or less, depending on your circumstances.

Can I overpay or pay my loan off early?

It depends on your loan agreement. Although providers must allow you to pay back personal loans in full, there may be fees for early repayments or overpayments.

Read more on repaying loans early.

What if I’m struggling to repay my loan?

If you’re struggling to repay your loan, get in touch with the loan provider. You may be given more time to make the payment.

If you miss a payment or make a late payment, the lender may add extra charges and interest to your loan. The lender can also take legal action or pass your debt to a collection agency.

Missed payments will also be noted on your credit report, which could harm your credit score and make it harder for you to borrow in future.

If you need help with debt, organisations including Citizens Advice and StepChange Debt Charity can offer free non-judgmental advice.

Is it better to borrow from my current bank?

Borrowing from your bank isn’t necessarily the best option. Your bank will usually be willing to lend you money if you have a good credit history and hold a current account with it. But that doesn’t automatically mean its borrowing terms are right for you.

It’s a good idea to check your eligibility for different loans with a loan comparison service such as ours. You can then compare the interest rates, costs and features available and find the option that best suits your needs and budget.

What if I’m refused a loan?

If you’ve been turned down for a loan or another type of credit, wait before applying again.

Making multiple credit applications in a short amount of time could lower your credit score. It’s also a red flag to lenders who may think you’re having financial difficulties.

Read our guide on what to do if you’re refused a loan.

Should I use a loan or a credit card?

A loan could be a good fit for a big, one-off cost. You borrow a set amount and pay it back in fixed monthly instalments, so you always know what’s due and when the loan will be paid off.

A credit card may be better for smaller or everyday spending. You can spend as and when you need to (up to your credit limit). And a 0% purchase card could mean no interest on new purchases if you clear the balance before the 0% offer ends (as long as you make the minimum repayment each month).

If you don’t pay off what you owe within that time, you could end up paying more in interest than you would with a loan.

How do I avoid loan scams?

Even the most financially savvy borrowers can be duped by loan fraudsters, so here are a few things to watch out for:

  • Cold calls, texts or emails offering you a loan and asking you to reply or call back

  • Being asked to pay an upfront fee

  • Being asked to give out personal details

  • Being asked to pay quickly or unusually

  • Loan companies that are not authorised by the Financial Conduct Authority (FCA).

If you need to report a scam or suspected fraud, contact Report Fraud online or by phoning 0300 123 2040. In Scotland, contact Police Scotland on 101.

Looking for something else?

Close up of someone handing keys overCar finance
Woman holding a smart phone and credit cardCompare credit cards
Man and woman sitting at an outside table looking at a laptop Compare current accounts
Charlie Evans
Reviewed 21 Oct 2026 byCharlie EvansPersonal finance expert

Charlie is a senior commercial leader with close to a decade of experience across the UK’s leading personal-finance and comparison platforms. Before joining Compare the Market as Head of Commercial in 2024, he held senior commercial roles at TotallyMoney and MoneySuperMarket Group.

Methodology

1Correct as of October 2026.

2Based on the % of respondents claiming they have used Compare the Market in the last 12 months vs. other leading PCWs. Source: Savanta BrandVue Financial Services, National Representative Survey of 12,221 respondents (September 2026)​

3 Based on Trustpilot ratings (October 2026).

4 Correct as of August 2026.

5Creditec is a UK credit broker that helps customers explore a range of alternative borrowing options through a single application journey. Working with a panel of lending and credit providers, Creditec aims to match customers with products that may be suitable for their circumstances. As part of our partnership, customers who are unsuccessful in obtaining a loan through Compare the Market may be given the option to continue their journey with Creditec, where they can explore other products that may be available to them. Any products shown and any lending decisions are determined by Creditec and its panel of providers.

Compare the Market Limited acts as a credit broker, not a lender. To apply you must be a UK resident and aged 18 or over. Credit is subject to status and eligibility.