The best personal loan rates


If you are looking to borrow a substantial sum to pay for home improvements, a car, or a wedding, for example, a simple personal loan may be an attractive option.

Loans for amounts between £ 7,500 and £ 15,000 are usually the lowest. Under £ 7,500, lenders must charge a higher amount to be worth it. Above £ 15,000, they charge more because their potential losses are so much greater.

We’ve taken a look at loans in this range and identified the ones with the lowest rates and performing well against other criteria.

Our personal loan star ratings are determined solely by our editorial team. For information, see our Methodology section below.


1. RateSetter

APR (representative) 2,80%

Early Refund Charges * No

Late payment fee ** £ 0

RateSetter loans are very flexible. There is no charge for partial or full repayment or late or late repayments, although of course you will have to pay your debt in full. Note that Metro Bank purchased RateSetter in September 2020, and its loans are now available through the Bank’s branch network. It still operates under the RateSetter brand and has maintained the same terms and conditions.

Lower APRA accepts early refunds with no MBNA fees


APR (representative) 2,80%

Early Refund Charges * Yes

Late payment fee ** £ 0

If you wish, there are no charges to pay an additional amount from your balance, but charges do apply to the full advance refund. Up to two months of paid vacation per year are available to eligible borrowers.

MBNA loans are available through Lloyds Bank.

Lower APR Up to 2 paid holidays per year Cahoot

3. Cahoot

APR (representative) 2,80%

Early Refund Charges * Yes

Late payment fee ** £ 0

Cahoot has this leading 2.8% representative APR on loans up to £ 20,000, although the availability of larger loans at a low rate shouldn’t encourage you to borrow more than you need or can afford.

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

Lead Representative APRLoans up to £ 20k ​​at 2.8% Minimum age 21 No branch network Sainsburys Bank

4. Sainsbury’s Bank

APR (representative) 2,80%

Early Refund Charges * Yes

Late payment fee ** £ 25

Sainsbury’s has the lowest rate, but requires borrowers to have had a Nectar card for at least six months. Non-Nectar cardholders are charged the highest representative APR of 3.4% and can only borrow for up to three years.

Overpayments can be made for free, but there is a fee for paying off the loan ahead of schedule.

Lead Representative A Opportunity to Top-Up Loan at Same Rate Nectar Card to Qualify for Late Payment Fee of £ 25 John Lewis

5. John Lewis

APR (representative) 2,90%

Early Refund Charges * No

Late payment fee ** £ 0

John Lewis’ representative APR of 2.9% is just a short distance from the top of the table, and it does not charge fees for overpayments or early loan repayments. There are also no late or late fees.

Competitive rate No change in advance payment Three days to clear payments £ 10,000 minimum income requirement

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

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


We look at * these factors when calculating our star ratings for the best lenders for loans in the £ 7,500 to £ 15,000 range:

Interest rate: We analyze representative, fixed APRs for the duration of the loan.Finished: the length of the loan and the interest rate chargedFlexibility: the availability of an option to pay in full within the term without incurring a feeRate: late or late fees, if applicableOther factors: other factors, including availability of paid holidays

(* Initial research conducted in February 2021)

How much interest is charged for a personal loan?

Interest rates are at historically low levels right now, which means you can borrow an amount between £ 7,500 and £ 15,000 for less than 3%. Loans for amounts higher or lower than this band tend to 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 award the advertised rate to 51% of those who apply. That is why it is described as the ‘representative’ annual percentage rate (APR).

Lenders offer their best (lowest) rate to people with strong credit scores, so if yours is not as good as it could be, you will be offered a higher, or possibly none at all.

The best way to find out where you stand is to use an eligibility checker to see which offers you are likely to be accepted for. That way, you can continue without further damaging your credit profile, which can happen if you apply for a loan and are turned down.

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

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 a couple of days. You will have to start making monthly payments a month later.

It is very important that you make your payments in full and on time to avoid a late or late fee. In addition to the cost, missing a payment can also hurt your credit score.

If you are having difficulty making a payment, contact your lender in advance; You may be offered a one month paid vacation period if you have made all of your previous payments.

If you have more serious financial problems that mean you cannot pay your debt payments, contact the lender again to discuss the issue. It is much better to be open with them than to ignore the problem, they will not!

They may be able to restructure the debt to give you more time to pay. You can also contact a charity like National Debtline or Citizens Advice for guidance.

If you find that you are in a position to pay off the debt ahead of schedule, that’s your privilege, but the lender may charge an early repayment fee, which could amount to one month of interest.

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