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Compare UK Loans | Check Rates & Eligibility
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Compare UK loan rates

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A loan allows you to borrow a sum of money upfront and repay it, with interest, in monthly instalments over an agreed period. You can use a loan for personal and business purposes, with unsecured and secured options available.

Moneyfactscompare.co.uk has been providing comprehensive comparison charts to the public for over 25 years. See below to compare loans and learn more about the different options available, or click on the charts to find some of the best loan deals in 2026.

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Personal loans

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Secured loans

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Bridging loans

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Car finance & leasing

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Secured Loans

Want a secured loans quote without affecting your credit score?

Our preferred secured loans broker is Loans Warehouse. Complete a quote today and get a decision within an hour. Poor credit & arrears accepted.

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Personal Loans

Check eligibility with multiple loan lenders in minutes - without affecting your credit score.

Personal loans from 1,000 to 50,000 available. Good and bad credit history accepted.

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Bridging Loans

Looking for the ideal bridging loan for your property or building work?

Connect with a lenders that can help you get started straight away. Our preferred broker for bridging loans is Loans Warehouse.

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Credit Check

View our live credit score and report - for free.

Find out what you're doing well and get tips on how to improve your score. View your borrowing power to see how likely you are to be accepted for credit.

How do loans work?

When you apply for a loan, you state how much you want to borrow over how many years. The lender will assess your credit and financial information to decide whether to approve your application and, if so, what interest rate to charge.

Once approved, the lender will send the money to your bank account for you to use however you choose. You will need to pay this sum back with interest over the agreed period, typically in fixed monthly instalments.

Note that the best loan rates for UK borrowers will typically be reserved for those with excellent credit histories and a stable financial situation.

The table below indicates how much a 10,000 loan could cost based on an APR (annual percentage rate) of 8.0%.

Loan term Monthly payment Total amount payable
Three years 312.08 11,234.79
Five years 201.43 12,085.83
Seven years 154.47 12,975.90

You can use our loan calculator to work out how much you may need to repay.

Unsecured personal loan rates havent changed much in 2026, despite the volatility seen in the UK economy. Indeed, at the start of June 2026, average personal loan rates across a range of tiers were lower than they were one year ago. For example, the average rate on a 10,000 loan borrowed over five years dipped from 8.2% to 8.0% over this period.

Thankfully, year-on-year, loan rates are lower across the board, and the market appears to be relatively stable in spite of wider concerns over the economy, Rachel Springall, Finance Expert at Moneyfacts, noted.

Pricing has been a delicate balance for lenders, considering their appetite to risk as cost of living pressures remain, alongside the need to entice new business, she explained.

Types of loan

There are several types of loan you can choose from, including:

Personal loans

Personal loans are a type ofunsecured loan. This means the borrower doesnt need to put forward any collateral, or security, to qualify for the loan.

You can typically borrow up to 25,000 (although larger loans may be available), which you then repay over an agreed number of years. You pay off the loan, and the interest charged, in monthly instalments.

If you have a poor credit history, there are loan companies that specialise in offering bad credit loans. These are standard personal loans, but they often charge a higher rate of interest than if you had a good credit score. See our chart tocompare bad credit loans.

Note thatguarantor loansare a specialist type of personal loan. They work in the same way as a standard personal loan, except the borrower can name another individual as a guarantor who agrees to repay the loan if the borrower cant. Guarantor loans may be particularly appealing to those with poor credit histories who may not be eligible for a standard loan.

Secured loans

Unlike personal loans,secured loansrequire some form of security, such as your home or another item of value.

This could help you to borrow a larger sum over a longer term and access lower rates of interest, but the item you put forward as security is at risk if you fall behind on repayments. The lender is entitled to repossess your property (or the item used as security) to get back any money owed.

Bridging loans are a specialist type of short-term secured loan. See more on ourbridging loans page.

Car finance is a type of secured loan that uses a vehicle as security.

Business loans

Business loanscan be unsecured, which means they dont require any form of collateral, or secured, which means the business needs to use their premises or another item of value as security for the loan.

There are a wide variety of business loans available, designed to suit a range of businesses and requirements.

Bear in mind that the Financial Conduct Authority (FCA) doesnt regulate business loans (with some exceptions). By contrast, all lenders offeringsecured or unsecured loansfor personal use need to be regulated by the FCA.

See our guide onbusiness loans vs. personal loans.

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Compare personal loans

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To find and compare some of the best loan rates in the UK in 2026, visit our personal loans charts.

Compare secured loans

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Interest in a secured loan? Compare options on our secured loan chart.

Compare business loans

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If you need funding for your business, compare business loans here.

What can loans be used for?

Loans can be used for many different purposes, including to:

  • buy a new car
  • fund home improvements
  • pay for a holiday, wedding or other special event
  • buy a new appliance or another expensive item
  • cover any unexpected expenses, such as emergency repairs
  • consolidate debt.

Business loans can also be used for a range of business expenses, such as buying new equipment.

Lenders typically stipulate that you cant borrow money for certain purposes, including:

  • gambling
  • investments
  • house deposits
  • business-related expenses (unless you take out a specific business loan).

Its also not a good idea to borrow money to cover bills and other essential expenses. If youre struggling financially, taking out a loan is unlikely to be the best option and could make your situation worse. Seek professional help if you need support with your finances.

How much can you borrow?

The amount you can borrow depends on a range of factors, as explained below. Some lenders allow you to borrow up to 50,000 with an unsecured personal loan, although other lenders only offer loans of up to 25,000, for example.

Borrowers may be able to access a larger loan by putting forward their property (or other valuable item) as security. Depending on the value of the collateral, this could enable you to borrow hundreds of thousands of pounds, or even millions of pounds.

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How do lenders determine how much I can borrow?

Many factors affect the amount you can borrow, including your:

  • income
  • regular expenditure (including rent or mortgage payments and bills)
  • existing debts
  • employment status (whether youre self-employed, for example, and how stable your employment is)
  • credit history.

When taking out a secured loan, the value of the property put forward as security will also be a crucial factor in how much a lender will offer you.

Lenders will look at the above information to work out how much you can afford to repay, and so how much you can borrow.

Pros and cons of loans

  • You will receive a lump sum of cash that you can use as you choose.

  • Loans are typically repaid in fixed monthly payments, which can make it easier to budget for.

  • They can be a relatively quick way to access funds without needing to save up over time.

  • Making loan payments in full and on time can help your credit history.

  • The best loan interest rates will go to those with the best credit scores and financial situation; those with less-than-perfect credit histories are likely to be charged higher rates.

  • To borrow a larger sum, you may need to put forward your property as collateral

  • Missing a loan repayment could damage your credit history and, if you fail to repay a secured loan, the lender could repossess the property used as security.

What to consider before taking out a loan

Its important to ask yourself a number of questions before taking out a loan, including:

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Do you need it?

Just because you're eligible for a loan, doesn't mean it's necessarily the best decision for you. Think about whether you really need it, or if you can afford to wait to save up money instead, for example.

How much do you need to borrow?

Work out how much you need to borrow and only take out a loan to cover the sum you need. You pay interest on your loan, so the more you borrow, the more interest you'll need to pay.

Is the lender authorised?

It's always worth double-checking that a lender is authorised by the Financial Conduct Authority (FCA) and that it isn't a loan shark (illegal lender) or a scam.

How much does it cost?

Compare loans and their interest rates to make sure you choose the most affordable option. You can use our loan calculator to see how much your monthly repayments would be and how much you'd pay overall, depending on interest charged.

Are you eligible?

Before applying for a loan, it's a good idea to check whether you're eligible as this can minimise the chances of your application being declined. You can check your loan eligibility without affecting your credit score.

How long do you need to make repayments?

It's important to choose a repayment term that works for you. The longer the repayment term, the smaller your monthly payments will be. However, a longer repayment term means you'll pay more interest overall, so it's worth choosing as short a term as you can afford.

What's the difference between interest rate and APR?

The interest rate andAPR (annual percentage rate)both tell you how much a loan will cost.

However, the APR includes the cost of any standard fees, as well as the interest rate, to show you the total cost of borrowing over one year. Lenders legally need to display the APR, which is designed to make it easier to compare different loans on a like-for-like basis.

Note that the representative APR advertised by a lender is a figure that only 51% of successful applicants need to receive; you may receive a higher or lower rate than this if you apply.

Who is eligible for a loan?

As a minimum, most lenders will only accept applications from UK residents aged 18 or over. Borrowers often need to have a UK current account and may need to provide a UK address history from the past three years.

Moreover, to be eligible for a loan, borrowers will also need to show they have some form of income and can afford to make the monthly payments in full and on time.

Each individual lender will set its own eligibility criteria and may require a minimum annual income, for example.

Some loans may only be available to those with a good credit history, with some lenders not accepting applications from those with county court judgments (CCJs) or bankruptcy on their credit file. However, there are specialist lenders and loans available that may be able to cater for those with a poor or bad credit history.

Note that, if youre applying for a secured loan, you will need to own a property (or other valuable item) that can act as collateral.

How to get a loan

You can apply for many loans online, although you may be able to apply for some in branch, via app or by phone.

Its worth comparing loans andchecking your eligibilitybefore applying for a loan to ensure you choose the most suitable one for you.

Whatever type of loan you apply for, the lender will need to know some key details, including your:

  • name and address
  • contact details
  • employment status
  • residential situation (renting, homeowner, living with parents etc)
  • income
  • regular monthly expenses (rent or mortgage payments, for example)

When using a loan comparison service or applying for a loan, youll also need to say how much you want to borrow, the term you want to borrow over and what you plan to do with the money (if approved).

Bear in mind that if youre applying for a secured loan, youll typically need to provide more in-depth information than for an unsecured personal loan.

Once youve filled in the required information, the lender will assess your application and run a hardcredit checkas part of the process. This check will be recorded on your credit report.

Dont submit multiple loan applications (or any other applications for credit) within a short space of time as this could affect your credit score.

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How quickly can I get the money after approval?

Depending on the lender and your application, you may receive a decision within a few minutes. The lender may then be able to transfer the loan to your account within a couple of hours , although other lenders may take one day or longer.

Can taking out a loan affect my credit score?

Applying for a loan can affect your credit score as lenders will typically conduct a hard credit check as part of the application process.

A hard check is recorded on your credit file and may temporarily affect your score but, as long as you make all your repayments on-time, your score should start to improve.

Your credit score is more likely to be negatively affected if you make multiple applications for credit (and so have multiple hard checks) within a short period of time. Moreover, bear in mind that any missed or late payments, or defaulting on the loan, are likely to harm your credit score.

See our guide fortips on how to improve your credit score.

Are there alternatives to loans?

Before applying for a loan, its worth considering some alternatives to see if they could be a more suitable option.

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Credit Cards

Credit cards can be more flexible and cheaper than a loan for borrowing smaller sums over a short period, as long as they are managed effectively.

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Remortgaging

Remortgaging and borrowing slightly more on your mortgage could be an alternative to a secured loan, although it's important to consider the potential downsides to this and to seek advice if you're unsure.

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Car finance

Car finance may be an option if you were thinking of using a loan to pay for a new vehicle.

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Buy now, pay later

Buy now, pay later can help to spread the cost of smaller purchases and, if you pay it off in full before interest charges apply, it won't cost anything.

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