August 2024: Top 64 Low Interest Personal Loans in the UK

Low-Interest Personal Loans Lenders in UK

Compare Low-Interest Personal Loan Lenders in UK

4.7 Customer Reviews

Compare Low-Interest Personal Loan Lenders in UK

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, the market abounds with diverse lenders, ranging from traditional banks to online loan platforms, offering personal loans tailored to your needs.

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 of interest, 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 this process, while essential, can be daunting and potentially overwhelming.

Chances are you might get lost. To simplify this decision-making process, we have compiled a handy list of the best personal loan lenders in the UK market, each offering low-interest rates, to assist you in making an informed choice that aligns perfectly with your financial goals and needs.

Latest Leading UK Lenders Offering Low Interest Personal Loans

Disclaimer: This list shows the information available online and on respective lenders' websites as of August 2024. The products and the quotes listed here may or may not be available to you.

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4.7/5

118118 Money Loans

Loan Amount

£1000 -

5000

Loan Term

1 -

3 years

APR

49.50%

Min Age

18 years

Min

£1,000 per month

Representative Example: Representative APR 49.9%. Based on a loan of £2,000 over 24 months at an interest of 41.2% pa (fixed). Monthly repayments of £123.64. Total amount payable £2,967.43. Maximum APR: 79.9%.

4.4/5

1Plus1 Guarantor Loans

Loan Amount

£1000 -

10000

Loan Term

1 -

5 years

APR

39.90%

Min Age

18 years

Min

Not mentioned

Representative Example: Borrowing £3000 over 36 months with a representative APR of 39.9% (variable),the amount payable would be £134.21 a month,with a total cost of credit of £1831.56 and a total amount payable of £4831.56.

4.9/5

Abound Loans

Loan Amount

£2000 -

10000

Loan Term

1 -

3 years

APR

25.80%

Min Age

18 years

Min

Not mentioned

Representative example: £2,000 loan repayable over 36 months. 36 monthly payments of £77.60. Rate of interest 20.2% p.a.(fixed) Representative 25.8% APR. Total amount repayable £2,793.60, which includes a £130 fee.

4.5/5

Admiral Loan

Loan Amount

£1000 -

30000

Loan Term

1 -

8 years

APR

16.90%

Min Age

18 years

Min

£19,000 per annum

Representative Example: Borrowing £10,000 over 60 months with monthly repayments of £241.68. The total amount repayable will be £14,500.80. Representative 16.9% APR, annual interest rate (fixed) 15.72%.”

4.9/5

Bamboo Loans

Loan Amount

£1000 -

8000

Loan Term

1 -

3 years

APR

49.70%

Min Age

18 years

Min

Not mentioned

Representative example: On an assumed loan amount of £2,500.00 over 24 months. Rate of interest 41% per annum (fixed). Representative 49.7% APR. Total amount payable £3,703.74 of which £1,203.74 is interest. 23 monthly repayments of £154.32 and a final payment of £154.38

1.6/5

Bank of Scotland Loans

Loan Amount

£7500 -

24999

Loan Term

1 -

5 years

APR

6.70%

Min Age

18 years

Min

Not mentioned

Representative Example: You could borrow £10,000 over 48 months with 48 monthly repayments of £237.16. Total amount repayable will be £11,383.68. Representative 6.7% APR, annual interest rate (fixed) 6.5%.

1.4/5

Barclays Bank Loans

Loan Amount

£1000 -

50000

Loan Term

1 -

5 years

APR

6.30%

Min Age

18 years

Min

Not mentioned

Representative example: 6.3% APR Representative based on a loan of £10,000 repayable over 60 months at an interest rate of 6.3 per annum (fixed)pa (fixed). Monthly repayment of £193.91. Total amount payable £11,634.60.

4.3/5

CashFloat Loans

Loan Amount

£300 -

2500

Loan Term

1 -

2 years

APR

295.58%

Min Age

18 years

Min

Not mentioned

Representative example: Borrow £1,200 for 9 months. 9 monthly repayments of £226.33. Total repayment £2,036.97. Interest rate p.a. (fixed) 145.71%. Representative APR 295.58%. Our Representative APR includes all applicable fees. Daily interest is capped at 0.47%.

4.7/5

Creation Loan

Loan Amount

£1000 -

25000

Loan Term

1 -

5 years

APR

23.90%

Min Age

23 years

Min

£9,600 per annum

Representative Example: £ 1,000 loan repayable over 12 months at £170.97 per month, Rate of interest 23.9% p.a fixed; Representative 23.9% APR, Total amount payable is £1,120.92.

4.7/5

Credit Union Loan

Loan Amount

£250 -

15000

Loan Term

1 -

5 years

APR

18.68%

Min Age

18 years

Min

Not mentioned

Representative example: If you borrow £2,800 over 2 years at a Representative APR of 18.68% and an annual rate of 18.68% (fixed), you would pay £140.71 per month. The total amount repayable is £3,377.02.

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The rate you get will depend on your individual, financial circumstances. Late repayment can cause you serious money problems. For more information, Go to moneyhelper.org.uk

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£1,000

Loan Term

Total repayment

Monthly repayment

RAPR

Interest

18 Months

£1554.10

£86.37

79.5%

59.97% 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 moneyhelper.org.uk

There you have it – a wealth of options at your disposal when the need for funds arises. With this table, you can compare various personal loans and their specifications, including interest rates, APR, loan amount range, tenure, and eligibility criteria.

Personal loans are designed to be a helpful financial resource, so don’t hesitate to seek one when necessary, but ensure you are fully prepared to repay it promptly.

To assess your financial capacity, use our personal Loan calculator to determine your affordability and make a well-informed decision.

If you are still unsure of your most suitable 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 indeed the rate you’ll receive.

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.

What are pre-approved personal loans?

Lenders run a credit check on you to find your eligibility for the loan. When you pass all initial checks and requirements, your loan is pre-approved, but it’s still not a guarantee of disbursement as some lenders perform a final check at the end of the application process, and if you fail, your loan may be denied. But still a pre-approved loan certainly means that your chances of getting a loan are bright.

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.