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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.
Disclaimer: This list shows the information available online and on respective lenders' websites as of March 2024. The products and the quotes listed here may or may not be available to you.
Representative Example: Assumed borrowing of £7,500.00 over 36 months at 29.3% APR representative. Monthly cost of £302.12. Total amount repayable of £10,876.38. Interest rate of 24.5% p.a.(fixed) and total fees of £395.00.
Representative Example: Assumed borrowing of £7,500.00 over 36 months at 29.3% APR representative. Monthly cost of £302.12. Total amount repayable of £10,876.38. Interest rate of 24.5% p.a.(fixed) and total fees of £395.00.
Representative Example: Assumed borrowing of £7,500.00 over 48 months at 17.9% APR representative. Monthly cost of £214.79. Total amount repayable of £10,309.78. Interest rate of 16.6% p.a.(fixed) and total fees of £150.00. Available for loan amounts between £5,000 – £25,000.
Representative Example: Assumed borrowing of £7,500.00 over 48 months at 17.9% APR representative. Monthly cost of £214.79. Total amount repayable of £10,309.78. Interest rate of 16.6% p.a.(fixed) and total fees of £150.00. Available for loan amounts between £5,000 – £25,000.
Representative Example: for comparison purposes, 16.9% APR Representative based on a loan of £10,000 repayable over 60 months (five years) with an interest rate of 16.9% p.a. (fixed). Monthly payment of £241.68 total amount repayable £14,500.74.
Representative Example: for comparison purposes, 16.9% APR Representative based on a loan of £10,000 repayable over 60 months (five years) with an interest rate of 16.9% p.a. (fixed). Monthly payment of £241.68 total amount repayable £14,500.74.
Representative example: A loan of £10,000 over 5 years will cost you £255.50 per month at a representative 19.9% APR.The total cost after 5 years is £15,329.80, which includes £5,329.80 interest at 19.9% fixed and a £0 fee. The total amount of credit is £10,000.
Representative example: A loan of £10,000 over 5 years will cost you £255.50 per month at a representative 19.9% APR.The total cost after 5 years is £15,329.80, which includes £5,329.80 interest at 19.9% fixed and a £0 fee. The total amount of credit is £10,000.
Representative example: Borrowing £2,000 over 24 months at Representative 39.9% APR and Interest rate 39.9% p.a. (fixed) with monthly repayments of £116.07 and a total amount payable of £2,785.68.
Representative example: Borrowing £2,000 over 24 months at Representative 39.9% APR and Interest rate 39.9% p.a. (fixed) with monthly repayments of £116.07 and a total amount payable of £2,785.68.
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.
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.
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.
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.
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.
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.
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.
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.
You choose the terms, we do the math.
Calculate monthly payments
Representative Example
Loan Amount
£1,000
Loan Term
18 Months
Total repayment
Monthly repayment
RAPR
79.5%
Interest
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.
Here are the answers to some frequently asked questions regarding personal loans, interest rates and 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.
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.
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.
The rate you are offered will depend on your individual circumstances.
Representative APR Example: On an assumed loan amount of £1,000 over 18 months. Rate of interest 59.97% per annum (fixed). Representative 79.5% APR. Total amount payable £1,554.10 of which £554.10 is interest. 17 equal monthly repayments of £86.09, and the final month’s payment of £90.57.
Some of the offered loans might be classed as High Cost Short Term Loans. APR rate starts from 18.22%. The maximum APR rate is 1721%, but you will get a personalised rate tailored to you. The minimum repayment term is 3 months, the maximum repayment term is 7 years. The minimum loan amount is £250 and the maximum loan amount is £35000.
Warning: Late repayment can cause you serious money problems. For more information, go to moneyhelper.org.uk
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