

Cheap Personal Loans
Borrow at 2.8% for £7.5k+
Coronavirus financial worries have caused some lenders to pause new loan applications and almost all have tightened acceptance criteria. Yet there are still low rates available, so if you NEED to borrow, our guide has full info on what to watch out for and a list of best buys. Plus, our Loans Eligibility Calculator helps you find which lenders are most likely to accept you.
Who's this guide for? This guide is for anyone considering taking out a loan.
Not what you want? Other related guides...
Cut existing loan costs | Balance transfer credit cards | Debt help

What is a personal loan?
Personal loans, also known as unsecured loans, are where you borrow a sum of money from a lender, and agree to pay it back over a set time period in fixed monthly repayments.
The lender will charge you interest as its fee to lend money to you, so you repay the amount you borrowed plus interest. The advantage is you get cash upfront, but can spread the cost of a purchase over several months or years.
This guide details the cheapest personal loans, but also addresses whether other finance options, like credit cards, might be cheaper for you. Plus, we've our clever Loans Eligibility Calculator, which can tell you which lenders are likely to accept you before you apply.
The seven need-to-knows
See which loans you've the best chance of getting, in your own personal best-buy table.
Usually, applying is the only way to know if you'll be accepted for a loan. Yet that marks your credit file, affecting your ability to get future credit. To help, our tool uses a 'soft search' to find your chances of acceptance before applying.
Check your chance of acceptance
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Best-buy personal loans
Not sure how much you can afford to borrow? Find out with our unique Personal Loan Calculator. Simply plug in the best-buy rates below and how much you can comfortably afford each month. It can also tell you how much a loan would cost you.

If you're looking for a loan, check out the best-buy rates below. We list loans by 'bands' as the rate you could get differs depending on how much you want to borrow.
As we warn above, while you should only borrow what you NEED, a peculiar quirk means you can sometimes pay less by getting a slightly bigger loan. Rates of loans under £3,000 are the most expensive, so always check if it's actually cheaper to borrow slightly more.
Specialist Money Transfer credit cards are also far cheaper than the loans below, if you can repay the full balance over 12-18mths.
Cheapest loans £3,000 - £4,999
LENDER | REP APR (1-5 years or stated) |
CHECK ELIGIBILITY + APPLY |
---|---|---|
Important. Specialist Money Transfer credit cards are far cheaper than the loans below, provided you can get a credit limit big enough. | ||
Ratesetter | 6.9% rep APR | Check eligibility |
Apply* | ||
Hitachi | 8.4% rep APR (2-5 years) | Check eligibility |
Apply* | ||
Tesco Bank | 8.5% rep APR | Check eligibility |
Apply* | ||
Hastings Direct | 8.7% rep APR |
Check eligibility |
Apply* | ||
AA | 8.8% rep APR (AA members) 8.9% rep APR (Non-members) |
Check eligibility |
Apply* |
See all official APR examples.
Cheapest loans £5,000 - £7,499
LENDER | REP APR (1-5 years or stated) |
CHECK ELIGIBILITY + APPLY |
---|---|---|
Ratesetter | 2.8% rep APR | Check eligibility |
Apply* | ||
Tesco Bank | 3.4% rep APR (1-3 years) |
Check eligibility |
Apply* | ||
MBNA | 3.5% rep APR | Check eligibility |
Apply* | ||
Hastings Direct | 3.5% rep APR | Check eligibility |
Apply* | ||
Sainsbury's Bank | 3.6% rep APR - Must have had a Nectar card for 6mths+, sadly not open to anyone self-employed | Check eligibility |
Apply* |
See all official APR examples.
Cheapest loans £7,500 - £15,000
LENDER | REP APR (1-5 years or stated) |
CHECK ELIGIBILITY + APPLY |
---|---|---|
Cahoot | 2.8% rep APR | Check eligibility |
Apply* | ||
TSB | 2.8% rep APR | Check eligibility |
Apply* | ||
Ratesetter | 2.8% rep APR | Check eligibility |
Apply* | ||
Sainsbury's Bank | 2.8% rep APR - Must have had a Nectar card for 6mths+, sadly not open to anyone self-employed | Check eligibility |
Apply* | ||
M&S Bank (i) | 2.9% rep APR (1-7 years) | Check eligibility |
See all official APR examples. (i) Important: M&S Bank has asked we direct people to our eligibility calculator, so only those more likely to be accepted will actually apply, reducing demand and enquiry calls, as it's already over capacity and needs to prioritise coronavirus help for vulnerable people.
Cheapest loans £15,001 - £20,000
LENDER | REP APR (1-5 years or stated) |
CHECK ELIGIBILITY + APPLY |
---|---|---|
Cahoot | 2.8% rep APR | Check eligibility |
Apply* | ||
TSB | 2.8% rep APR | Check eligibility |
Apply* | ||
Ratesetter | 2.8% rep APR | Check eligibility |
Apply* | ||
Sainsbury's Bank | 2.8% rep APR (2-5 years) Must have had a Nectar card for 6mths+, sadly not open to anyone self-employed |
Check eligibility |
Apply* | ||
Tesco Bank | 2.9% rep APR (1-3 years) | Check eligibility |
Apply* |
See all official APR examples.
Cheapest loans £20,001 - £25,000
LENDER | REP APR (1-5 years or stated) |
CHECK ELIGIBILITY + APPLY |
---|---|---|
Ratesetter | 2.8% rep APR | Check eligibility |
Apply* | ||
Sainsbury's Bank | 2.8% rep APR (2-5 years) Must have had a Nectar card for 6mths+, sadly not open to anyone self-employed |
Check eligibility |
Apply* | ||
Tesco Bank | 2.9% rep APR (1-3 years) | Check eligibility |
Apply* | ||
AA | 2.9% rep APR (AA members, 1-7 years) 3% rep APR (Non-members, 1-7 years) |
Check eligibility |
Apply* | ||
Post Office | 3% rep APR (1-7 years) | Check eligibility |
Apply* |
See all official APR examples.
Important. Certain lenders offer personal loans up to £50,000, though it's a huge commitment, so think very carefully before getting such a large amount. Be VERY sure you can repay it.
If you do plan to borrow, first check with your own bank, as cheap rates for such large borrowing are often for existing customers only. If your bank can't help, next look at the cheapest open market rates.
Cheapest loans over £25,000
LENDER | REP APR (£25k-£35k, 1-5 years or stated) |
APPLY |
---|---|---|
First Direct |
£25k-£30k: 3.3% rep APR (1-7 years) | Existing Customers only Apply (not in eligibility calc) |
£30k-£50k: 6.7% rep APR (1-7 years) | ||
Halifax | 5.8% rep APR | Existing Customers only Apply (not in eligibility calc) |
Sainsbury's Bank | £25k-£30k: 6.2% rep APR (2-5 years) - Must have had a Nectar card for 6mths+, sadly not open to anyone self-employed | Check eligibility |
Apply* | ||
Virgin Money | 6.9% rep APR (1-7 years) | Apply (not in eligibility calc) |
See all official APR examples.
If the above doesn't work, you could combine smaller personal loans or remortgage, though that usually means extending the term, more interest and securing the debt on your house.
If you're struggling to pay an existing loan due to coronavirus, lenders should provide support. What's available depends on whether you've already had help:
For the latest updates and full information on the support available, see our Coronavirus Finance & Bills Help guide.
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Personal Loans Q&A
Want to complain about your loan provider?
If your loan provider has charged you the wrong amount, taken the wrong amount in payment, or its service has been atrocious, then you don't have to suffer in silence. It's always worth trying to call your lender first to see if it can help, but if it can't (or won't), or it doesn't get back to you...

Free tool to help you complain
This tool helps you draft and manage your complaint. It's totally free to use, and it's offered by Resolver, a firm we work with to help people get complaints justice.
RESOLVER – FREE COMPLAINTS TOOL*
If the company won't help, Resolver also helps you escalate your complaint to the free Financial Ombudsman Service.

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