Personal loans
Compare personal loans
- See what personal loans you could be eligible for
- Check which loan rates you could get, without affecting your credit score
- Big or small, search for a loan that best suits your needs
We compare loans from 39 FCA-regulated lenders[1], including:
[1] Correct as of March 2025.
Personal loan eligibility checker and calculator
Before you apply for a personal loan, you can search for loans you’re likely to be accepted for with our free eligibility checker. It’s a soft credit search so won’t affect your credit score in any way.
Try our eligibility checkerOur loan calculator gives you an idea of how much you could borrow when comparing loans. It can also tell you how much your monthly repayments could be.
Try our loan calculatorWhat is a personal loan?
A personal loan lets you borrow an amount of money from a lender over an agreed period (or term). The amount you borrow, plus interest, is typically paid back in fixed monthly instalments.
Most banks and building societies offer personal loans up to £25,000 (you can compare personal loans up to £50,000 with Compare the Market).
A personal loan could be a good option if you have a major expense coming up that you’d struggle to pay for all at once.
How do personal loans work?
Personal loans are sometimes called unsecured loans because they don’t require you to put up a valuable asset as security in order to borrow. Typically, this means you don’t need to risk your home or your car to be eligible for the money.
1. Apply for a loan
Decide how much you want to borrow and for how long. Personal loan terms are usually between one and five years. Some can stretch to 10 years, so they’re not always short-term loans.
When you apply, the lender will run a credit check to decide whether you’re eligible. They’ll also look at your income and expenses to make sure you can afford the repayments.
2. Wait for your money, then withdraw it
If your application is approved, you’ll be asked to sign the loan agreement. After that, you’ll receive the money as a lump sum directly into your bank account. It usually takes one to two days to arrive.
3. Pay back what you owe
Start paying back the loan, plus interest, in fixed monthly instalments for the agreed term.
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.
Our cheapest loans for £7,500-£15,000
These are some of the personal loans with the lowest APRs from our panel of providers (last updated 6.03am, 25 April 2025). We focus on loans for £7,500-£15,000 because this range covers the most commonly borrowed amounts.
Most loans are available to both new and existing customers, but always check before applying. We’ve excluded deals that are only available if you have an existing financial product with the lender from the list below. Depending on your credit history, you might not be eligible for these loans or get the advertised APRs.
M&S Bank loans: 6% rep APR
| Representative APR^ | 6.0% |
|---|---|
| Representative example |
Based on a loan of £10,000 at 6.0% per annum fixed (representative 6.0% APR), total amount repayable would be £11,555.40 at £192.59 per month for 60 months |
| Good to know | Available for loans from £7,500 to £20,000 paid back over 1-7 years Must be over 18; minimum annual income £10,000 |
Santander loans: 6% rep APR
| Representative APR^ | 6.0% |
|---|---|
| Representative example |
Based on a loan of £10,000 at 6.0% per annum fixed (representative 6.0% APR), total amount repayable would be £11,555.40 at £192.59 per month for 60 months |
| Good to know |
Available for loans from £7,500 to £25,000 paid back over 1-5 years |
Novuna Personal Finance: 6.5% rep APR
| Representative APR^ | 6.5% |
|---|---|
| Representative example |
Based on a loan of £10,000 at 6.5% per annum fixed (representative 6.5% APR), total amount repayable would be £11,687.40 at £194.79 per month for 60 months |
| Good to know |
Available for loans from £7,500 to £25,000 paid back over 1-7 years Must be over 21 and have an annual income of at least £10,000 |
Table last updated at 6.03am, 25 April 2025. Offers can change at any time; for an up-to-date view of which personal loans are available to you, click the blue ‘Check eligibility’ buttons.
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.
How much does a personal loan cost?
The cost of a personal loan depends on how much you want to borrow, the APR and how long you take to pay it back.
Personal loan rates vary according to the size and length of the loan, as well as your personal circumstances. A longer loan term may attract lower interest rates, but the overall cost will be higher than for a loan you repay quickly.
The following example is for illustrative purposes only. It shows the total cost of borrowing £10,000, at a different APR over two and five years, assuming there are no extra fees.
| APR/loan term | Monthly repayments | Interest payments | Total cost of loan |
|---|---|---|---|
| 10% over 2 years | £459.46 | £1,027.10 | £11,027.10 |
| 7% over 5 years | £197 | £1,819.94 | £11,819.94 |
Use our loan calculator to get an idea of how much a personal loan could cost you.
What can I use a personal loan for?
You can use a personal loan to make a big purchase, or to consolidate existing debts into a single manageable monthly payment.
Personal loans are often used to pay for:
- Home improvements – a kitchen makeover could cost anywhere between £2,000 and £25,000, while the average cost for a new bathroom is around £7,000. A home improvement loan could help fund your renovation projects.
- Buying a car – an unsecured personal loan would enable you to buy a car outright and own it straight away. Compare with other types of car finance to see which option would suit you best.
- Weddings – the average cost of a UK wedding in 2024 is more than £20,500. If you can’t pay for your big day in one go, a wedding loan could help spread the cost over a longer period.
- Unexpected expenses – if you’re suddenly facing a big bill, such as a broken boiler or car repairs, a personal loan could provide emergency cash to fix your problem.
- Debt consolidation – a debt consolidation loan lets you bring together existing debts with different lenders into one new manageable payment plan. However, it’s likely your new loan – especially if it’s over a longer term – means you’ll be paying interest for longer. This may cost you more overall.
How can I find the right personal loan for me?
Here’s how to find a personal loan to suit your needs:
- Work out what you can afford to repay – lenders look at your income and expenses to make sure you can afford a loan, and you should too. Work out what you can comfortably repay each month and don’t overstretch yourself financially.
- Only borrow what you need – there’s no point paying interest on debt you don’t need. Resist the temptation to borrow more, even if you’re eligible to do so.
- Compare rates – use our eligibility checker to give you an idea of what personal loan rates could be available to you. Our personal loan comparison tool will only show you loans you’re likely to be accepted for and won’t affect your credit score.
- Check your credit score – can you improve your credit score before applying for a loan? Examine your credit report for any errors that could affect your chances of acceptance.
- Look at the loan terms – if you want the option of repaying the loan early, look for one that won’t involve paying a penalty charge.
Advantages and disadvantages of personal loans
If you think a personal loan could be right for you, here are some pros and cons to weigh up first.
Benefits of a personal loan:
You can use the money for whatever you like
You could pay for home improvements, a wedding or a car, for example. You’re not tied to a specific purpose, unlike car finance.
Flexible terms give you choice
You can choose how much you want to borrow and how long you’d like to take to repay it. However, this does depend on your credit score and will affect the amount of interest you’ll have to pay.
It’s easier to budget with fixed repayments
Personal loan interest rates are usually fixed, unlike credit cards. And you’ll repay a fixed amount every month, which makes it easier to budget.
Consolidate your debts into one monthly payment
Taking out a debt consolidation loan could make your existing debts more manageable by bringing together lots of separate monthly payments into one.
And if you’re able to secure a better interest rate, the amount you repay each month could be lower too. But keep in mind that taking out a new loan to do this can mean extending the amount of time that you’re in debt, and you could pay more overall in the long run.
Apply and receive the money quickly
You can often apply for personal loans online. And 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).
Drawbacks of a personal loan:
You face higher interest rates than some alternatives
Personal loans tend to have higher interest rates than loans secured against an asset. This is because they tend to be shorter in length and involve more risk for the lender.
However, be aware that although a secured loan may have a lower interest rate, it comes with a risk to you. If you fail to repay the loan, you could lose the asset you used as security such as your home or car.
It’s a long-term commitment
If you take out a loan but later lose your job and struggle to find work or income, you could get into difficulty with your repayments.
You’ll need a good credit score for the best loan rates
The interest rate advertised may not be the rate you’re offered.
This is because the representative APR you usually see advertised is actually the rate that only 51% of those accepted for credit will get. So, roughly half of the people approved for that deal will have to pay more.
A poor credit score makes it difficult to qualify for the cheapest personal loans. The better your credit score, the better your chances of a good interest rate.
Prepare for serious penalties if you default
A default is when the lender decides to close your account because you’ve missed payments.
If you fail to make your repayments, this will damage your credit score. Your lender may even take legal action to settle unpaid debts.
How can I get the best loan rates when interest rates are high?
Personal loan rates are normally linked to the Bank of England (BoE) base rate – sometimes called the bank rate. The BoE bank rate is currently at 4.5%.
A higher bank rate could mean it’s more expensive to take out a new loan. But there are ways you can improve your chances of finding loans with lower rates, including:
- Building your credit score – a healthy credit score shows lenders that you’re a reliable borrower. Loan providers are more likely to offer you the best loans with the lowest rates if they can see you handle your finances responsibly.
- Comparing loans – different lenders set interest rates based on their own criteria, so it makes sense to explore what’s available. Compare loans with us and we’ll help you search from a range of trusted providers.
How much can I borrow with a personal loan?
You can typically borrow between £1,000 and £25,000 with a personal loan (you can compare personal loans up to £50,000 with Compare the Market). The amount depends on your credit rating and how much you can afford to repay.
It’s important to consider the annual percentage rate (APR) when working out how much you can afford to borrow.
The APR is the cost of borrowing money over a year. It includes the interest on your loan as well as other charges you may have to pay, including any fees.
When you compare personal loans, don’t just assume you’ll get the advertised APR. Unless it’s clearly labelled as a guaranteed APR, the rate you see will be a representative example of what customers could get.
Lenders only need to offer the representative APR rate to 51% of successful applicants – typically those with the best credit ratings.
How much do people borrow on average?
According to our research in March 2024, people borrowed – on average – just over £5,600 in personal loans over their lifetime.
Almost half of those we surveyed took out a personal loan of between £2,000 and £10,000.
And the main reasons for their loans? To buy a car or pay off other debt.
What are the alternatives to personal loans?
There are six main alternatives to personal loans:
Secured loan
If you’re having trouble being accepted for a personal loan or you’re looking to borrow more than £25,000, you could try applying for a secured loan. This type of loan is also known as a homeowner loan.
You’ll need to offer an asset such as your home or car as security. This means it could be recovered by the lender if you fail to make the repayments.
Because secured loans are less risky for lenders, they tend to offer:
- Lower interest rates
- Longer terms
- Higher borrowing limits.
Credit cards
If you’re looking at a small loan, a 0% interest credit card could be a suitable alternative.
Make sure you can afford to keep up with the minimum monthly repayments and ideally repay the full amount before your 0% period ends.
Overdraft facility
If you only need to borrow a small amount of money for a very short time, consider using an interest-free overdraft, if you have one. If you don’t, it could be worth looking at alternative current accounts that offer this facility as these can be a better option than small loans for some.
Peer-to-peer loan
Peer-to-peer (P2P) loans work in a similar way to standard personal loans. The difference is you borrow money from another person or group of people, instead of a bank or building society.
You can find P2P lenders on dedicated websites. Interest rates vary and can be affected by your credit score. However, P2P lending can sometimes offer low interest loans that are cheaper compared to traditional lenders.
Car finance
Car finance can help you to buy a car that you wouldn’t normally be able to pay for up front. You’ll typically pay a deposit, followed by monthly repayments (with interest) over a fixed term. This could be from two years up to five years.
There are two main types of car finance available:
- Hire Purchase (HP) – your loan will be secured against the car, and its remaining cost (minus a deposit) will be split into monthly repayments. Once you’ve made the last repayment, the car will be yours to keep.
- Personal Contract Purchase (PCP) – rather than repay the purchase price, you effectively repay the depreciation (the estimated amount the car will lose in value during the loan term). At the end of the deal, you can hand the car back, buy it by paying a one-off lump sum or part-exchange for a new car.
Remortgaging
If you have equity in your home, you may want to free up some cash by remortgaging. Just be aware that borrowing more will increase the size of your mortgage.
Also consider any fees you may need to pay, such as an early repayment charge or valuation fee.
What details do I need to compare personal loans?
To compare personal loans, we’ll need to know:
- How much you want to borrow
- All the addresses you’ve lived at in the past three years
- Some personal details, including your employment status and occupation
- Your employer’s details, including their address and phone number
- Your annual salary and any other income
- Your expenses, such as rent or mortgage payments
- Any financial dependents.
Once you’ve chosen a personal loan, you’ll be taken to the lender’s site to apply. You’ll likely have to provide additional information.
Checking your credit score
It’s a good idea to check your credit score for free before you compare personal loans. This will give you a chance to correct any mistakes and see if there are any steps you can take to improve your score before you apply.
What our expert says...
"There are many reasons why people take out personal loans and, in some cases, a loan can even help you improve your credit rating. Remember to always check the total cost of the loan and plan a budget to pay it back. Only take out the amount you need and pay it back as quickly as you can to reduce the amount of interest.”
- The Editorial Team, Experts in personal finance, insurance and utilities
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Frequently asked questions
What happens if I miss a personal loan repayment?
If you miss a loan repayment, the lender may add extra charges and interest to your loan. 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 the future.
It could also lead to the provider taking further legal action or passing your debt to a collection agency. This could result in county court judgments (CCJs).
If you fail to stick to the terms of a CCJ, the court could allow the creditor to secure your unpaid debt against your assets. In that case, you could even lose your home.
If you think you’re going to miss a loan payment, contact your lender. Don’t ignore the issue. The sooner you discuss your options, the more flexible they may be.
Can I get a personal loan with bad credit?
Yes, you might be able to get a personal with bad credit, but there may be restrictions on how much you can borrow and you’re likely to be charged a high rate of interest. Some lenders may not lend to you if you have a poor credit rating, so you may not be able to get the cheapest loans.
The better your credit score, the better terms you’ll be offered for a personal loan because the lender will be more confident in your ability to repay it.
Can you be pre-approved for a personal loan?
Yes, you can be pre-approved for a personal loan. Pre-approval means your loan application will be accepted based on the information you’ve provided.
However, it doesn’t mean it’s guaranteed – the lender will run final checks before giving the green light. If it finds extra details that it wasn’t expecting, it’s likely you won’t qualify for the deal you were hoping for.
What can I do if I need to borrow more than is available?
If you need to borrow more than the lender is willing to offer you, or you want more than the typical £25,000 limit, consider a secured loan. You could borrow £100,000 or even more with a secured loan, but you’ll need to put up some form of security. This is usually a valuable asset, such as your property.
Think carefully before taking out this type of bank loan. If you miss repayments, the lender can seize your asset to repay what you owe.
What happens if I can’t repay my loan?
If you’re struggling to repay your loan, contact your lender as soon as possible. They may be able to support you with managing your repayments.
Alternatively, contact a debt advice service. They’ll be able to help you organise a debt repayment plan with your lender.
If you can’t reach a compromise with your lender, you’ll probably be charged penalty fees for partial, late or missed repayments.
Can I repay my loan early?
You can pay off your personal loan early, but you might have to pay an early repayment charge (ERC). Early repayment charges vary in size but you can usually expect to pay the equivalent of one to two months’ interest, depending on how much time is left on your agreement.
What will happen if UK interest rates change?
If your personal loan has a fixed interest rate, it won’t be affected if UK interest rates change. Your monthly repayments should remain the same, regardless of what happens to the Bank of England base rate.
Is car finance a personal loan?
No, car finance is different to a personal loan.
With a personal loan, you borrow a fixed amount of money from a lender to buy a car outright. You then repay the loan plus interest in monthly instalments. With a personal loan, you own the car from the start.
Car finance works a little differently. Plus, there are two main types of car finance available:
Whatever option you choose, the lender owns the car until you finish the repayments.
Read more in our guide Should I get a bank loan or car finance to buy a car?
