Our short guide on UK personal loans can ensure you get the right loan for you at the lowest possible interest rate.
Personal loans are often ideal for those looking to borrow money and pay back a fixed amount every month. There are, however, many options and lenders to choose from meaning choosing the right loan for you can seem a bit intimidating.
In this short guide, our experts here at LoanTube provide information on UK personal loans so you can find the right loan for you.
Representative Example: £12,000 over 66 months, 31.9% APR fixed. Monthly payment £358.22 Annual interest rate 28.01% fixed. Interest payable £11,642.52. Total repayable £23,642.52. Representative Example: £12,000 over 66 months, 31.9% APR fixed. Monthly payment £358.22 Annual interest rate 28.01% fixed. Interest payable £11,642.52. Total repayable £23,642.52. Representative Example: Loan Amount: £20950.00, Loan Term: 85 Months, Interest Rate: 23.00% PA Variable. Monthly Repayments: £537.44. Total Amount Repayable: £45,682.15. This example includes a Product Fee of £2,095.00 (10% of the loan amount) and a Lending Fee of £714.00 Representative Example: Loan Amount: £20950.00, Loan Term: 85 Months, Interest Rate: 23.00% PA Variable. Monthly Repayments: £537.44. Total Amount Repayable: £45,682.15. This example includes a Product Fee of £2,095.00 (10% of the loan amount) and a Lending Fee of £714.00 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. 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.Maximise your options: Compare and apply for loans below with LoanTube
Apply Filters
Loan Amount
£4000 -
£20000
Norwich Trust
Loan Term
1 -
10 years
4.8/5
Representative APR
31.90%
Minimum Age
21 Years
4.8/5
Norwich Trust
Loan Amount
£4000 -
£20000
Loan Term
1 -
10 years
Representative APR
31.90%
Minimum Age
21 Years
Minimum Income
£2000 per month
Loan Amount
£5000 -
£100000
Evolution Money Loans
Loan Term
1 -
20 years
4.5/5
Representative APR
28.96%
Minimum Age
18 years
4.5/5
Evolution Money Loans
Loan Amount
£5000 -
£100000
Loan Term
1 -
20 years
Representative APR
28.96%
Minimum Age
18 years
Minimum Income
Not mentioned
Loan Amount
£1000 -
£10000
1Plus1 Guarantor Loans
Loan Term
1 -
5 years
4.4/5
Representative APR
39.90%
Minimum Age
18 years
4.4/5
1Plus1 Guarantor Loans
Loan Amount
£1000 -
£10000
Loan Term
1 -
5 years
Representative APR
39.90%
Minimum Age
18 years
Minimum Income
Not mentioned
What is a Personal Loan?
A personal loan is a sum of money borrowed from a bank or lender, with an agreement to pay back the money over a period of time in fixed monthly repayments.
Individuals can take out personal loans to cover one-off, upfront expenses. This might include a car, weddings, holidays or any major home improvements.
Generally, personal loans are “unsecured”, meaning you are not borrowing the money against your home or car. This means if you cannot keep your repayments up, the lender cannot repossess your property.
Personal loans are helpful for building and maintaining your credit score too. If you repay the loan on time and in full, you credit score will improve gradually.
What to Look for in a Personal Loan?
There are a number of factors to consider when thinking about taking out a personal loan. Some of these factors include:
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The Interest Rate
The first, and probably most important, is the personal loan interest rate. The interest rate will determine how much you end up paying back during the lifetime of the debt.
Finding a loan with the lowest interest rate will mean it is cheaper in the long-run for you. This may be shown as the annual percentage rate, or APR, which takes into account the cost of interest on the loan and any setup fees and/or charges.
The interest rate you are offered will often be determined by your credit score.
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Personal Loan Repayment Flexibility
Another important factor to consider is the flexibility of the loan. It often works in your favour to pay the loan off ahead of time, particularly if you come into some unexpected money. Many lenders may charge you for this sort of early repayment.
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Other Fees and Charges for Personal Loans
You may also wish to consider other fees and charges that different lenders might have. This includes an origination fee or processing fee which is typically charged by the lender when entering the loan, for admin and processing reasons. There are other types of fees and charges too, like missed or late payment fees.
Please read the small print before entering into an agreement.
How to Find the Best Personal Loans in the UK
Before jumping in and taking the first personal loan you see, you need to figure out a few key factors for your individual loan. In the long-run, figuring out these factors will help get you a suitable loan. These factors include:
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Your Eligibility
Knowing what you are and aren’t eligible for can narrow your search and save you time.
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The Amount you wish to Borrow
Figuring out the amount you need can also determine which lender you match. Here at LoanTube, you can find offers on unsecured personal loans ranging from £1000-£35,000.
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The Interest Rate you Want
Lenders will often base this on your credit score, but knowing what you will and won’t accept can help quicken the process.
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The Duration of the Loan
Are you able to pay off the loan over 12 months, or do you need a longer 7-year loan?
Figuring out these vital factors can speed up the process and help you avoid wasting time with loans and lenders that are not right for you.
It is also likely that many low cost UK personal loans are not necessarily bank loans. Online loans have come to prominence in the last 10 years, meaning that many favourable loans are found online through specialist companies.
The problem with beginning an online search for personal loans is that there are a lot of lenders to choose from and it can be a little overwhelming.
Luckily, LoanTube has an extremely useful system to compare personal loans with real interest rates. We can help you compare personal loans and also ensure that the lender is fair and legitimate. We can do the hard work for you. You can read our FAQs on a personal loan, which may address your questions and concerns related to it.
Be Careful of “Hard Checks” When Looking for Personal Loans
As mentioned previously, your credit history can have a huge impact on the interest rate lenders will offer you. Something which can affect this is a “hard check” which is when a lender checks your credit history when making an official application.
A hard check can lower your credit score and raise a red flag for lenders. It also appears on your credit report.
At LoanTube, our lenders use a Soft Credit Check system which will not harm your credit score and not appear on your credit report.
How can LoanTube Help you Find a useful Personal Loan?
Here at LoanTube, we understand that finding the perfect personal loan can seem a little daunting, particularly with all of the choice out there in the market. Fortunately, our experts work with multiple, legitimate lenders to find you a good match.
The application process is quick and easy and we always ensure that the rate you see is the rate you get, unlike many comparison sites who do not compare lenders’ actual APRs.
Whether it is to tide you over for 12 months, or it is to consolidate any existing debts, our comparison tool can help get you on your way to a lending scenario.
With LoanTube you are in safe hands. We promise to find you a UK personal loan that fits your exact needs from lenders who are fair, legitimate and above-the-line. We do not and will not work with loan sharks.
You can start your application here.
