Best Personal Loans November 2023

A personal loan, also known as an unsecured loan, allows you to borrow a sum of money over an agreed period. You will then repay this amount, plus interest, usually in monthly instalments until the debt is paid off.

To help you compare deals, lenders are required to display the total cost of a loan as a percentage, known as the annual percentage rate (APR). This tells you how much a loan will cost you over one year, taking into account the interest rate and any standard fees. You should consider this, alongside other features of a loan, to decide if a loan is right for you.

We’ve scoured the personal loans market and carried out loan customer surveys to discover which lenders offer the features considered the best. We base our star ratings on 20 of the features customers told us are most important, from payment flexibility and the ease of the application process to the customer support available. 

Partner Spotlight

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Compare Loans with Monevo

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Loan Amount(Required)

Please enter a number from 1000 to 50000.

Loan Purpose(Required)

Please SelectCar / VehicleDebt ConsolidationHolidayHome ImprovementsOne Off PurchaseBills / Expenses

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Editor’s picks

Personal Loans	Editors Pick	Available amounts	Available Terms
Learn more Tesco Bank Personal Loan	Overall	£1,000 to £35,000	1 to 10 years	Visit Website Learn more
Learn more Halifax Personal Loan	Same-day payout	£1,000 to £50,000	1 to 7 years	Visit Website Learn more
Learn more Zopa Personal Loan	Customer support availability	£1,000 to £35,000	1 to 7 years	Check Eligibility with Monevo Learn more
Learn more TSB Personal Loan	Flexible payment options	£300 to £50,000	1 to 7 years	Visit Website Learn more

Important information about Editor’s Picks

The Editor’s Picks listed above are based on NerdWallet’s editorial team’s analysis of only the personal loans reviewed on our site. The team has assessed over 25 personal loan providers to evaluate which brands offer standout features that may be important to you.

The Editor’s Picks exclude any assessment of a lender’s rates or fees, and any loans available only to a lender’s existing customers.

Editor’s Picks are our own opinion and don’t constitute advice, recommendation or suitability for your financial circumstances. They are editorially independent of any relationship NerdWallet has with partners who may compensate us.

Best Personal Loan Providers 

Promotion

Tesco Bank Personal Loan

• Representative APR
  6.3%

  Non-Clubcard rate shown – Clubcard members receive preferential rate
• Representative Example
  Representative APR 6.3%. Based on a loan of £7,500 over 60 months at an interest rate of 6.13% p.a. (fixed). Monthly repayments of £145.43. Total amount payable £8,725.80. Maximum APR: 34.5%.
• Available amounts
  £1,000 to £35,000
• Available Terms
  1 to 10 years
• Joint Loans
  Yes

Visit Website

Always check terms & conditions for suitability before applying.

Eligibility Criteria

• Must be a UK resident
• Must be aged 18 or over

Promotion

Halifax Personal Loan

• Representative APR
  6.6%
• Representative Example
  Representative APR 6.6%. Based on a loan of £10,000 over 48 months at an interest of 6.41% p.a. (fixed). Monthly repayments of £236.73. Total amount payable £11,363.04. Maximum APR 29.9%.
• Available amounts
  £1,000 to £50,000
• Available Terms
  1 to 7 years
• Joint Loans
  Yes

Visit Website

Always check terms & conditions for suitability before applying.

Eligibility Criteria

• Must be aged 18 or over.
• Must live in the UK (excluding the Channel Islands and the Isle of Man).
• Must be in paid employment or have a regular income.
• Must not have a history of bad credit, such as bankruptcy or CCJs.
• Must have a Halifax current account to apply for up to £50,000, if not, the maximum amount is £25,000.

Promotion

TSB Personal Loan

• Representative APR
  6.9%
• Representative Example
  Representative APR 6.9%. Based on a loan of £7,500 over 60 months at an interest rate of 6.69% p.a. (fixed). Monthly repayments of £147.42. Total amount payable £8,845.20. Maximum APR 39.9%.
• Available amounts
  £300 to £50,000
• Available Terms
  1 to 7 years
• Joint Loans
  Yes

Visit Website

Always check terms & conditions for suitability before applying.

Eligibility Criteria

• Must be aged 18 or over.
• Must be a UK resident.
• Must have a TSB current account (for more than 3 months) to apply for loans of £300 to £50,000, if not, the amounts available are £1,000 to £25,000.

Promotion

RateSetter Personal Loan

• Representative APR
  8.9%
• Representative Example
  Representative APR 8.9%. Based on a loan of £10,000 over 60 months at an interest rate of 8.3% p.a. (fixed). Monthly repayments of £205.62. Total amount payable £12,337.20 (includes £75 fee). Maximum APR 29.9%.
• Available amounts
  £1,000 to £35,000
• Available Terms
  1 to 5 years
• Joint Loans
  No

Visit Website

Always check terms & conditions for suitability before applying.

Eligibility Criteria

• Must be aged 21 or over.
• Must hold a UK bank or building society account.
• Must have been a UK resident for a minimum of 3 years.
• Must have a regular source of income paid monthly, for example through wages or a pension, of over £16,000 a year.
• Must have a good credit history, with no County Court judgements, bankruptcies or debt relief orders on your credit file.

Promotion

Zopa Personal Loan

• Representative APR
  22.9%
• Representative Example
  Representative APR 22.9%. Based on a loan of £10,000 over 60 months at an interest of 22.9% p.a. (fixed). Monthly repayments of £269.40. Total amount payable £16,164.
• Available amounts
  £1,000 to £35,000
• Available Terms
  1 to 7 years
• Joint Loans
  No

Check eligibility with Monevo

Nerdwallet has partnered with Monevo. Check your eligibility with this lender and from a range of loan providers without affecting your credit score.

Eligibility Critera

• Must be aged 20 or over
• Must be a current UK resident with 1 year of address history in the UK
• Must be employed, self-employed or retired with a pension
• Must have an income of at least £12,000 per year (before tax)

Promotion

Sainsbury’s Bank Personal Loan

• Representative APR
  6.7%

  Non-Nectar members rate shown – Nectar members receive preferential rate
• Representative Example
  Representative Example: Representative 6.7% APR fixed. Based on a loan of £10,000 for 60 months at 6.7% p.a. Total £11,740.20 repayable at £195.67 per month. Maximum APR: 29.9%.
• Available amounts
  £1,000 to £40,000
• Available Terms
  1 to 7 years
• Joint Loans
  Yes

Visit Website

Always check terms & conditions for suitability before applying.

Eligibility Criteria

• You can borrow between £1,000 – £40,000 if you’re a Nectar member, non-Nectar members can borrow up to £25,000
• Must be at least 18 years old and less than 80 when you apply. You should also be under 83 when the loan is due to be repaid
• Must have a UK-based bank or building society account that can accept Direct Debits. If you’re applying for a joint loan, the first named applicant must be named on this bank account
• Must have a permanent UK address
• Must be in permanent paid employment or retired with a pension
• Must have a gross annual income of over £7,500
• Must not have a history of County Court Judgments or bankruptcy

Promotion

HSBC Personal Loan

• Representative APR
  6.9%
• Representative Example
  Representative APR 6.9%. Based on a loan of £7,000 over 60 months at an interest rate of 6.9% p.a. (fixed). Monthly repayments of £137.59. Total amount payable £8,225.40. Maximum APR 22.9%.
• Available amounts
  £1,000 to £25,000
• Available Terms
  1 to 8 years
• Joint Loans
  Yes

Eligibility Criteria

• Must be over 18 and a resident of the UK.
• Must have an annual income/pension before tax of £10,000 or more.
• Must have a bank or building society account with a Direct Debit facility.

Promotion

M&S Bank Personal Loans

• Representative APR
  6.6%
• Representative Example
  Representative APR 6.6%. Based on a loan of £10,000 over 60 months at an interest of 6.6% p.a. (fixed). Monthly repayments of £195.23. Total amount payable £11,713.80. Maximum APR 22.9%
• Available amounts
  £1,000 to £25,000
• Available Terms
  1 to 7 years
• Joint Loans
  No

Check Eligibility with Monevo

Nerdwallet has partnered with Monevo. Check your eligibility with this lender and from a range of loan providers without affecting your credit score.

Eligibility Criteria

• Must be over 18
• Must be a UK resident
• Must have an annual income of at least £10,000

Promotion

Santander Personal Loan

• Representative APR
  6.3%
• Representative Example
  Representative APR 6.3%. Based on a loan of £10,000 over 60 months at an interest rate of 6.3% p.a. (fixed). Monthly repayments of £193.91. Total amount payable £11,634.60. Maximum APR 26.9%
• Available amounts
  £1,000 to £25,000
• Available Terms
  1 to 5 years
• Joint Loans
  Yes

Check Eligibility with Monevo

Nerdwallet has partnered with Monevo. Check your eligibility with this lender and from a range of loan providers without affecting your credit score.

Eligibility Criteria

• Must be 21 or over and live in the UK permanently.
• Must have a regular yearly income of £10,500+.
• Must be able to make your repayments by Direct Debit.
• Must not have been declared bankrupt, or had a CCJ or an IVA within the last 6 years.
• To apply for loans of £20,000 and above you must have a regular yearly income of £20,000+.

Promotion

Oakbrook Personal Loans

• Representative APR
  19.9%
• Representative Example
  Representative APR 19.9%. Based on a loan of £2,000 over 24 months at an interest of 19.9% p.a. (fixed). Monthly repayments of £100.16. Total amount payable £2,403.84. Maximum APR: 34.9%.
• Available amounts
  £1,000 to £15,000
• Available Terms
  1 to 5 years
• Joint Loans
  No

Check eligibility with Monevo

Nerdwallet has partnered with Monevo. Check your eligibility with this lender and from a range of loan providers without affecting your credit score.

Eligibility Criteria

• Must be aged 18 to 73
• Must be a Permanent Resident of the UK (excludes NI, Channel Islands, Isle of Man)
• Must have a UK personal bank account

The pros and cons featured here are chosen by us based on a combination of our expert opinions from our research of the personal loans market and an exclusive survey of UK consumers conducted on behalf of NerdWallet UK in February 2023 to identify the features of personal loans that people feel are most important. They are unlikely to be the only product features and restrictions that you should consider. Pros and cons are subjective and you should align them to your personal circumstances. Information was correct at the time of publication but may have changed since.

Best Personal Loan Providers: Summary

Lender	NerdWallet Star Rating	Representative APR	Representative example
Tesco Bank		6.3%	Representative APR 6.3%. Based on a loan of £7,500 over 60 months at an interest rate of 6.13% p.a. (fixed). Monthly repayments of £145.43. Total amount payable £8,725.80. Maximum APR: 34.5%.
Halifax		6.6%	Representative APR 6.6%. Based on a loan of £10,000 over 48 months at an interest of 6.41% p.a. (fixed). Monthly repayments of £236.73. Total amount payable £11,363.04. Maximum APR 29.9%.
TSB		6.9%	Representative APR 6.9%. Based on a loan of £7,500 over 60 months at an interest rate of 6.69% p.a. (fixed). Monthly repayments of £147.42. Total amount payable £8,845.20. Maximum APR 39.9%.
RateSetter		8.9%	Representative APR 8.9%. Based on a loan of £10,000 over 60 months at an interest rate of 8.3% p.a. (fixed). Monthly repayments of £205.62. Total amount payable £12,337.20 (includes £75 fee). Maximum APR 29.9%.
Zopa		22.9%	Representative APR 22.9%. Based on a loan of £10,000 over 60 months at an interest of 22.9% p.a. (fixed). Monthly repayments of £269.40. Total amount payable £16,164.
Sainsbury’s Bank		6.7%	Representative Example: Representative 6.7% APR fixed. Based on a loan of £10,000 for 60 months at 6.7% p.a. Total £11,740.20 repayable at £195.67 per month. Maximum APR: 29.9%.
HSBC		6.9%	Representative APR 6.9%. Based on a loan of £7,000 over 60 months at an interest rate of 6.9% p.a. (fixed). Monthly repayments of £137.59. Total amount payable £8,225.40. Maximum APR 22.9%.
M&S Bank		6.6%	Representative APR 6.6%. Based on a loan of £10,000 over 60 months at an interest of 6.6% p.a. (fixed). Monthly repayments of £195.23. Total amount payable £11,713.80. Maximum APR 22.9%
Santander		6.3%	Representative APR 6.3%. Based on a loan of £10,000 over 60 months at an interest rate of 6.3% p.a. (fixed). Monthly repayments of £193.91. Total amount payable £11,634.60. Maximum APR 26.9%
Oakbrook		19.9%	Representative APR 19.9%. Based on a loan of £2,000 over 24 months at an interest of 19.9% p.a. (fixed). Monthly repayments of £100.16. Total amount payable £2,403.84. Maximum APR: 34.9%.

How personal loans work

When you take out a personal loan, you receive the money as a lump sum from your chosen lender. You then need to repay this amount, plus the interest charged by the lender, usually in monthly instalments over the agreed period.

Loans of between £1,000 and £25,000 over terms of one to seven years are fairly typical, but some lenders can offer larger loans and longer repayment terms.

You can use a loan for many purposes, including to pay for a holiday, a wedding, a new car, home improvements, or an emergency expense. You can also use it for debt consolidation, although it’s important to be aware of the costs this may involve.

The interest rate you receive depends on several factors, including the amount you want to borrow and your credit score. Smaller loans often come with a higher interest rate than larger loans.

Lenders typically charge a higher rate of interest if you have a lower credit score because you’re seen as a higher risk than someone with a better credit history.

The APR tells you the cost of your loan, including interest and standard fees. Bear in mind that the personal APR you receive may be different to the advertised representative APR. 

The representative APR is designed to help you see the typical cost of a loan, but you’re not guaranteed to receive this rate. Only 51% of applicants who are approved for a loan will receive the advertised representative APR (or lower), so you could be charged more or less than this.

Pros and cons of personal loans

As with any time you take out credit, there are pros and cons to getting a personal loan.

How much can I borrow with a personal loan?

You can typically borrow between £1,000 and £25,000 with an unsecured personal loan, but some lenders may offer larger loans. For example, you may be able to borrow up to £50,000, although these larger loans may only be available to existing customers.

Your credit score and financial situation will also determine how much you can borrow. If you have an excellent credit score and a good income, you are likely to be able to borrow more than someone with a poorer credit history and a lower income.

Even if you are eligible for a larger loan, you should only borrow the amount you need and that you can afford to repay.You can use our personal loan calculator to get a rough estimate of how much you could afford to borrow.

How to choose the best personal loan

Before applying for a personal loan, it’s worth taking time to research different lenders and compare deals.

Comparing loans from a range of lenders can improve your chances of finding the best loan for your requirements. If you apply for the first loan you see, you could end up paying a higher interest rate than you need to or taking out a loan that doesn’t offer the flexibility or support you want.

Some important points to consider when you compare loans are:

• how much you can borrow
• how long you have to repay it
• the annual percentage rate (APR)
• how quickly you could get the loan in your account
• if there are any fees
• if there any charges for early repayment
• if there is the option of borrowing more
• what forms of customer support are available

You should also check the eligibility criteria of each lender to make sure you meet their basic income and credit history requirements, for example.

It’s sensible to only borrow what you need and pay it back as quickly as possible, based on what you can comfortably afford to repay each month. 

Nerdy tip: If you have a less-than-perfect credit score, there are specialist loans for bad credit that may be an option to consider. But it may be worth seeing if you can improve your credit score before applying, as this could help you get accepted for a loan and access lower rates of interest.

How to get a personal loan

With many lenders, you can apply for a personal loan online. Before submitting a formal application, you can often check your eligibility for a loan first.

Checking your eligibility involves a soft credit check, which won’t affect your score. You will also need to provide information such as your name, address, income, and employment status.

Seeing if you qualify for a loan, before formally applying can minimise the chances of applying for an unsuitable loan and getting rejected which can have a negative effect on your credit profile.

When you apply for a loan, you will need to provide the lender with details including your:

• name
• address
• date of birth
• employment status
• income
• regular expenses

You will also need to say how much you want to borrow and what you plan to use the loan for.

Lenders will use this information, as well as the results of a hard credit check, to decide on your application.

A hard credit check leaves a mark on your credit history and could affect your score. One loan application and hard credit check is unlikely to have a significant impact on your score, as long as you repay the loan on time. 

However, multiple loan applications and hard credit checks within a short space of time could affect your score. This is why it’s important to only apply for a loan if you are confident you will be approved.

You can also use a loans eligibility service to do a soft search across multiple lenders to find how likely it is you’ll be offered several different loans, without affecting your credit score. 

» MORE: How to get a personal loan

Alternatives to a personal loan

A personal loan isn’t the only option if you need to borrow money. Depending on your situation and your individual requirements, there are alternatives you could consider.

• Credit card: If you only need to borrow a small sum over a short period, a credit card could be worth considering. Using a 0% interest credit card means you could borrow money without paying any interest, as long as you pay off the card in full by the end of the 0% period and stick to the terms of your credit agreement.
• Secured loan: If you’re struggling to get an unsecured loan or you want to borrow a larger amount, you could consider a secured loan. These loans use your property as security, which the lender can repossess if you don’t repay the loan. This reduces the risk for the lender, but you risk losing your property if you can’t make repayments.
• Guarantor loan: This is a type of personal loan where a friend or family member agrees to act as guarantor and repay the loan if you don’t manage to. The guarantor can make it easier for someone to get accepted for a loan as the risk to the lender is reduced.
• Overdraft: If you have a current account with an arranged overdraft and only need to borrow a small amount for a short time, this could be an alternative to taking out a loan. However, make sure you don’t go over your agreed overdraft limit or you could face high interest charges.
• Car finance: If you plan to take out a loan to buy a car, you could consider taking out car finance. This is when the loan is secured against the vehicle and you make payments each month. There are several types of car finance available, including hire purchase (HP) and personal contract purchase (PCP).
• Friends and family: If someone close to you can afford to lend you money, it may be worth asking them. However, only ask someone you trust and put the terms of the loan in writing to minimise the chances of disagreement later on.
• Remortgaging: By remortgaging and borrowing more than you currently owe, you can raise the money for home improvements, for example. However, this means you would owe more on your mortgage and you should consider any early repayment charges or other fees you may need to pay.

Best personal loans methodology

NerdWallet has evaluated and reviewed more than 25 personal loan lenders.

We considered 20 data points for each loan, based on the criteria that matter most to customers, scoring them on loan features, flexibility, application process and availability of customer support, among other factors. This information was gathered from each lender’s website, company representatives and independent financial product analyst Defaqto. In addition, we regularly add new brands and our editorial team review them against the same criteria for consistency and accuracy. 

Using the same data across all products and features we were able to create star ratings, presented on a scale of one to five stars, where a one-star score represents ‘poor’ and a five-star score represents ‘excellent’.

Important information: Neither the review or the star ratings considered the lender’s lending rates or representative APR, and therefore does not reflect how much they charge to borrow with them. The rates on this page have been provided as additional information. Always check and compare a lender’s rates against others on the market when considering a loan. The rate you are offered will be dependent on your personal circumstances, loan amount and term and may differ from the representative APR.

About the Author

Rhiannon Philps

Rhiannon has been writing about personal finance for over three years, specialising in energy, motoring, credit cards and lending. After graduating from the University of Cambridge with a degree in…

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