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.
Disclaimer: This list shows the information available online and on respective lenders' websites as of September 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…
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: 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: 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: 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: Assumed borrowing of £7,500.00 over 48 months at 16.9% APR representative. Monthly cost of £211.47. Total amount repayable of £10,150.38. Interest rate of 15.7% 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 16.9% APR representative. Monthly cost of £211.47. Total amount repayable of £10,150.38. Interest rate of 15.7% p.a.(fixed) and total fees of £150.00. Available for loan amounts between £5,000 – £25,000.
Representative Example: for comparison purposes, 16.6% APR Representative based on a loan of £10,000 repayable over 60 months (five years) with an interest rate of 14.7% p.a. (fixed). Monthly payment of £240.30 total amount repayable £14,418.17.
Representative Example: for comparison purposes, 16.6% APR Representative based on a loan of £10,000 repayable over 60 months (five years) with an interest rate of 14.7% p.a. (fixed). Monthly payment of £240.30 total amount repayable £14,418.17.
Oplo Personal loans are available for any type of expense. They also offer home loans. This platform believes in investing in a person’s prospects rather than history. With Oplo Finance, you could borrow from £2,000 to £15,000 of potential powering cash, for a variety of reasons, and spread your repayments across 24 to 72 months. Oplo Personal loans can make life’s big purchases possible!
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 is one of the leading peer-to-peer lending platforms which connects a borrower to many lenders. You get the loan amount disbursed in your bank account within 48 hours with Lending Works Loans and applying for a loan at lending works only takes a few minutes. Lending Works personal loans are hassle-free and offers actual rates. You can take them for multiple purposes – for debt consolidation, a major purchase, a life event, home improvement, etc. And your credit score won’t be affected if you’re merely browsing for a quote.
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.
Fintern offers personal loans at the lowest interest rates based on the analysis of your financial situation. They keep track of the kind of EMI and repayment term you can afford and design customised solutions for you. Your long-term financial stability is at the heart of everything Fintern loans do. Most other lenders overlook your live financial data. But Fintern uses artificial intelligence to analyse it intelligently. This enables you to be eligible for low-cost loans and enables Fintern to assist you in defining an affordable and viable repayment strategy.
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.
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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.
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.