Low Interest Personal Loans in the UK – Comparison Table (July 2023)
A personal loan with a low rate in the UK is an essential financial aid used during a financial emergency or when you find yourself in a situation requiring funds you might not have planned for. Luckily, there’s no shortage of lenders offering personal loans, varying from traditional banks to online loan platforms.
Choosing the right low-interest loan option takes an understanding of your needs, knowing how to search for loans with low interest, and knowing your capabilities to repay it.
This will also help determine what interest rate will serve you best. So, make your decisions wisely and then look for the right lowest APR loan with the lowest possible interest rate for your individual situation.
When looking for a personal loan with a low rate, it’s imperative to know and compare loans based on interest rates, APR, other fees, charges, etc., of various banks, lenders, and financial institutions, and that process can be very cumbersome.
Chances are you might get lost. So, here’s a handy list of the best personal loan lenders in the UK with low-interest rates laid out for you to help make your decision-making process a lot simpler.
The Current Top Lenders of Low Interest Personal Loans in the UK
Disclaimer: This list shows the information available online and on respective lenders' websites as of July 2023. The products and the quotes listed here may or may not be available to you.
So, there you go – you have plenty of options to choose from when you need funds. Remember, personal loans are offered to help you, so don’t hesitate to borrow when needed, but be absolutely ready to pay it back on time.
Check your affordibility with our Personal Loan calculator and make an informed financial decision.
With this table, you can compare various personal loans and their specifications, including interest rates, APR, loan amount range, tenure, eligibility criteria, etc…
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Inactive Lenders
BetterBorrow Loans
Representative example: 27.3% APR Representative based on a loan of £5,000, repayable over 42 months at an interest of 23.7% pa (fixed). Monthly repayment of £178.12. Total amount payable £7,480.93. Our representative APR applies to loans from £1,000 to £12,000, for terms of 12-60 months.
LiveLend Loans
Representative example: 25.7% APR Representative based on a loan of £5,000, repayable over 42 months at an interest of 25.7% pa (fixed). Monthly repayment of £174.65. Total amount payable £7,335.28 Our representative APR applies to loans from £1,000 to £12,000, for terms of 12-60 months.
Post Office Loans
Representative example: Representative 14.9% APR. Based on a loan amount of £4,000 over 36 months at an interest rate of 14.9% p.a. (fixed). Monthly repayment £136.65. Total amount repayable £4,919.47.
Metro Bank Loans
Representative example: If you took out a loan of £10,000 over five years at a fixed interest rate of 8.2% per year (8.9% APR representative), your monthly repayment would be £205.62 and your total repayment amount would be £12,337.20. This includes a fee of £93.
Oplo Personal Loans
Representative example: If you borrow £6,915 over 47 months at a Representative rate of 30.8% APR and an annual interest rate of 13.92% (fixed), you would pay 46 monthly instalments of £240.33 and one final payment of £240.33. Total amount payable £11,295.71 with an acceptance fee of £395.
Lending Works Personal Loans
Representative example: Borrow £1,000 over 12 months at 12.9% APR representative. Monthly repayments of £87.68 and total amount payable of £1052.15. Interest of 4.5% p.a. (fixed) and total fees of £27.50. The rate you are offered may differ from the representative APR shown and will be based on your personal circumstances, loan amount and repayment term.
Likely Loans
Representative example: If you borrow £2,000.00 over 24 months at a Representative rate of 59.9% APR and an annual interest rate of 59.9% (fixed), you would pay 24 monthly instalments of £131.05. The total charge for credit will be £1,145.20 and the total amount payable will be £3,145.20.
Fintern Loans
Representative Example: If you borrow £2,000 over 36 months at a Representative rate of 18.8% APR and an annual interest rate of 18.8% p.a. (variable), you would pay 36 monthly instalments of £71.66. The total charge for credit will be £579.56 and the total amount payable will be £2,579.56.
Educated guesses aren't good enough
You choose the terms, we do the math.
Personal Loan calculator
What is the purpose of your loan ?
How much do you wish to borrow?
What repayment term would you like to choose ?
Representative Example
Loan Amount
£2,600
Loan Term
3 Years
Total repayment
£4,559.66
Monthly repayment
£126.66
RAPR
49.7%
Interest
41% p.a (fixed)
*The rate you get will depend on your individual, financial circumstances. Late repayment can cause you serious money problems. For more information, go to MONEYADVICESERVICE.ORG.UK.
If you are still unsure of your best option, a smart thing to do is to use a reliable loan comparison platform. With LoanTube, you can quickly and easily compare loans from various lenders and see the rates offered to make better decisions. With us, the rate you see is the rate you get.
Can't find what you need? We can help you find the best personal loan for you.
FAQs
Here are the answers to some frequently asked questions regarding personal loans, interest rates and APR.
What is a personal loan APR?
APR stands for the Annual Interest Rate, which is the actual yearly cost of any loan. It is represented in percentage and includes the interest rate and fees the borrower pays on the loan each year, as well as the other charges applicable to your loan each year.
Its full form is the Annual Percentage Rate. Since it combines additional charges with the interest rate, it’s higher than the interest rate of the personal loan.
What is a good APR for a personal loan?
APR depends on the interest rate of personal loans, which varies because of multiple factors. However, for a loan amount of more than £5000, the good APR can be below 8%. For a £2000-£5000 loan amount, the APR rate below 12% can be considered fair. For loans below £2000, an APR of up to 15% is a reasonable APR.
What is a good interest rate on a personal loan?
Personal loan interest rates range from 6% and go up to 36%. It depends upon multiple factors such as the borrower’s credit score, past association with the lender, affordability, etc.
The loan amount and repayment tenure also play a vital role in deciding personal loan interest rates. So it’s hard to mention a generic acceptable interest rate or APR for personal loans.
What types of personal loans are there?
You might need a personal loan for various purposes. Some examples of personal loans are vacation loans, car loans, home renovation loans, wedding loans, overdraft loans, debt consolidation loans, etc.
What is a 'soft' search while applying for a personal loan?
A soft search is a type of credit check that allows you to find out the likelihood of being accepted for a personal loan without leaving a footprint on your credit report. It is an important tool for those looking to apply for a loan who want to avoid damaging their credit score. Soft searches allow lenders to assess your creditworthiness and make decisions about whether or not they will offer you a loan, all without impacting your credit score. This means that if you’re rejected, it won’t affect your ability to apply for other loans in the future.
How to get lowest interest rate on personal loan?
- Shop around: Compare rates from different lenders to find the lowest interest rate on a personal loan. Consider using an online loan comparison, such as LoanTube, to compare offers from multiple lenders at once.
- Improve your credit score: Your credit score is one of the biggest factors that affects the interest rate you’ll be offered on a personal loan. Make sure you’re taking steps to improve your credit score before applying for a loan to get the best possible rate.
- Opt for a shorter repayment term: The longer the repayment term, the higher your interest rate will likely be. Consider opting for a shorter repayment term if you can afford it in order to get a lower interest rate on your personal loan.
- Put up collateral: Some lenders may offer lower interest rates if you put up collateral, such as real estate or another asset, as security against defaulting on your loan payments.
- Get pre-approved: If you have good credit and are confident about getting approved for a personal loan, consider getting pre-approved with several lenders before making your final decision so that you can compare their offers and choose the one with the lowest interest rate available to you.
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