Personal loans typically offer between £1,000 and £36,000, and could be used for purchases such as a new car or some home improvements. They also give you the flexibility to pay back the loan over a number of years. Most unsecured loans have a fixed interest rate, which means that repayments will stay the same throughout the term.
- Before you apply for a loan, take some time to work out how much you want to borrow and how much you can afford to pay back monthly. Before deciding on a loan, it's worth taking your income and expenses into account to be sure you can realistically make the repayments.
- Depending on your credit rating, you may be offered a different interest rate (Representative APR) or be limited to a certain amount that you can borrow. Compare loans without affecting your credit score and get approval in three minutes.
- You may also be asked for proof of address and proof of earnings to support your application, so be sure to have these to hand.
There are a number of reasons why you might want to borrow money. It could be that there's a new car you've got your eye on, you want to consolidate your debt, or you need to pay for a wedding. Whatever the circumstances, a personal loan is just one way of getting a lump sum quickly.
What is an unsecured personal loan?
With an unsecured loan, you don’t have to offer up any kind of collateral (e.g. your house) as a guarantee in order to get the loan. While this could mean less risk to you when borrowing the money, unsecured loans tend to have higher interest rates as a result.