Best loan rates for personal loans


If you’re looking to borrow a large amount to pay for renovations, a car, or a wedding, for example, a simple personal loan can be a great option.

Loans for amounts between £ 7,500 and £ 15,000 are generally the lowest. Below £ 7,500, lenders have to charge a higher amount to make it worth it. Above £ 15,000 they charge more because their potential losses are much higher.

We have looked at the loans in this range and identified those with the lowest rates and the best performance against various other criteria.

The star rating of our personal loans is determined solely by our editorial team. For more information, see our Methodology section below.


1. RateSetter

APR (representative) 2.80%

Prepayment charge * No

Late payment fees ** £ 0

Our verdict

RateSetter loans are very flexible. There are no fees for partial or full repayments and no fees for late or missed repayments, although of course you must pay off your debt in full.

Note, RateSetter was bought in September 2020 by Metro Bank, and its loans are now available through the bank’s branch network. It still operates under the RateSetter brand and has kept the same terms and conditions.

  • Lowest APR
  • Accepts prepayments free of charge

M&S Bank

2. M&S Bank

APR (representative) 2.80%

Prepayment charge * No

Late payment fees ** £ 0

Our verdict

With a representative APR of 2.8%, M&S personal loans lead the market. In addition, the same rate also applies from 12 months up to seven years, which also offers a good dose of flexibility.

You can overpay on your M&S loan at no charge, but you will be charged a penalty for paying the total balance before your chosen term.

  • Same rate up to 7 years
  • APR market leader
  • Minimum income of £ 10,000



APR (representative) 2.80%

Prepayment charge * Yes

Late payment fees ** £ 0

Our verdict

There is no charge for paying extra on your balance if you wish, but there is a charge for full prepayment. Up to two months of payment holiday per year are available for eligible borrowers.

MBNA loans are available through Lloyds Bank.

  • Lowest APR
  • Up to 2 public holidays per year


4. Cahoot

APR (representative) 2.80%

Prepayment charge * Yes

Late payment fees ** £ 0

Our verdict

Cahoot has this representative 2.8% APR on loans up to £ 20,000 – although the availability of larger loans at a low rate should not encourage you to borrow more than you need or can. allow yourself.

You can overpay on your Cahoot loan at no additional cost, although the lender charges a fee for the full prepayment. There is also no charge for a missed payment (although your credit score is likely to take a hit).

  • Senior APR Representative
  • Loans up to £ 20,000 at 2.8%
  • Minimum age 21
  • No branch network

Sainsburys Bank

5. Sainsbury Bank

APR (representative) 2.80%

Prepayment charge * Yes

Late payment fees ** £ 25

Our verdict

Sainsbury’s offers the lowest rate but requires borrowers to have held a Nectar card for at least six months. If you qualify, you can borrow up to £ 25,000 at the very low rate of 2.80% and choose to pay off the debt over terms of one to seven years.

Cardholders other than Nectar are charged a higher representative APR and shorter borrowing terms.

Overpayments can be made free of charge, but a fee is charged for clearing the loan before the due date.

  • Senior APR Representative
  • Flexible borrowing terms
  • Need a Nectar card to be eligible
  • £ 25 late payment fee

* Based on a settlement amount as defined in the Consumer Credit (Early Settlement) Regulations 2004. This states that if you have less than 12 months of your loan, providers can charge up to 28 days of interest. An additional 30 days of interest may be added if there is more than one year of the loan term remaining, bringing the total maximum penalty to 58 days of interest.

** Late or missed loan payments will negatively affect your credit score


We took the following factors * into account when developing our star ratings of the best lenders for loans between £ 7,500 and £ 15,000:

  • Interest rate: we looked at representative APRs – fixed for the term of the loan
  • Term: the term of the loan and the interest rate charged
  • Flexibility: the availability of a full refund option in the term without incurring any costs
  • Costs: charges for late or missed payments, if applicable
  • Other factors: other factors, including the availability of payment holidays

(* Research undertaken in August 2021)

What is a personal loan?

A personal loan is another name for an unsecured loan. This means that it is a loan that is taken out based on your income, your personal situation and your credit rating. It is not guaranteed against an asset, like your house or your car.

This means that the borrowing limits on personal loans are generally lower.

What is the interest rate for a personal loan?

Interest rates are currently at historically low levels, which means you can borrow between £ 7,500 and £ 15,000 for less than 3%. Loans for amounts greater or less than this tranche usually cost more.

It is important to note that you will not always get the rate you see advertised. The regulations mean that lenders only have to give the advertised rate to 51% of those who request it. This is why it is described as the “representative” Annual Percentage Rate (APR).

Can I get a loan with bad credit?

Lenders offer their best (lowest) rate to people with good credit scores, so if yours isn’t as good as it could be, you will be offered a higher rate, or maybe be no loan at all.

What is a soft search?

The best way to find out how you stack up is to use an eligibility checker to see which offers you are likely to be accepted for. This is also known as “soft research” and it leaves no trace on your credit profile.

How long can I take out a loan?

You can borrow over 12 months or over several years (usually up to 5 years, or even 7 years). If you borrow for longer, the amount you pay each month will be less, but the amount you repay overall will likely be more.

How do loans work in practice?

If your request is approved, the money should be in your account within hours in many cases, and certainly within days. You will need to start making monthly repayments a month later.

It’s really important to make your payments in full and on time to avoid being hit with late or missed payment charges. In addition to the cost, missing a payment can also hurt your credit score.

What should I do if I am having trouble making my payments?

If you’re having trouble repaying your loan, contact your lender in advance. It can offer you a one-month payment holiday if you have settled all of your previous payments.

If you have more serious financial issues that mean you can’t afford the debt repayment, contact the lender again to discuss the issue. It is much better to be open about it than to ignore the problem.

He may be able to restructure the debt to give you more time to pay. You can also contact a charity such as National Debtline or Citizens Advice for advice.

Can I repay the loan early?

If you find that you are able to erase the debt sooner than expected, it is your privilege, but the lender may charge a prepayment fee, which could amount to a month’s interest.

Tips for smart borrowing

Use an eligibility checker: You will have nothing to lose and your credit score will be protected if a personal loan is refused.

Shop around for the best rate: A comparison website will allow you to see APRs side by side. Remember that these are only representative, so you may be offered some

Consider borrowing a little more: In most cases, representative APRs go down when you borrow £ 7,500. If you are looking for a loan of this size, it might be a good idea to borrow a little more to access the best rate. However, be sure to play to your advantage rather than borrowing more than you actually need.

Look at the alternatives: For example, a 0% purchase credit card that charges no interest. However, the APRs are considerably higher on credit cards if you don’t pay off what you owe within the interest-free time frame, so be careful.

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