If you find yourself in a tough spot financially, it is always an option to get a personal loan to see you through. Some lenders are better than others and it is well worth the time to do your research and see which personal loan is best for your situation.
It is important to note that you should only borrow if you absolutely need to and have a plan to pay it back fully on time. Even if this is the case, try and borrow as little money as you can and pay it back as quickly as you can. In the case of personal loans, there is no room for uncertainty and it is better to be safe than sorry.
It is also worth researching whether getting a credit card may be a better option. While it may be tricky to get accepted for a credit card, it could potentially be a safer option than a personal loan.
The Coronavirus pandemic has made matters worse for a lot of people with millions becoming unemployed. This has caused some loan lenders to stop accepting applications and tighter criteria necessary to receive a loan.
However, there are plenty of good rates available, so if you absolutely need to borrow money, keep reading to see where the best personal loans are
What is a Personal Loan?
You can borrow a certain amount of money from a lender and agree to pay it back to them in fixed instalments. There will be interest charged on the loaned amount, so you will pay back the amount you borrowed plus any accrued interest. The benefit is obtaining the total sum up front and spreading that cost over a period of months or years.
Please note that these rates are likely to fluctuate
See below a list of the best personal loans available
You will probably recognise some of the companies as they are household names. Taking into consideration the company and how they handle loans is also an important part of choosing a lender. The lenders listed below have good satisfaction ratings and are trustworthy.
It is important to understand that the interest rate on the loans below may not be the interest rate offered to you. There is an application process for all of these loans where the lender determines if you are eligible and if they think you are likely to pay the loan back on time.
Visit the lender’s website and follow the instructions to apply for their personal loan.
Loans under £3,000
It is common for the rates on these smaller loans to be the biggest and it is sometimes the case that you can actually pay less on interest to borrow more. It’s important to not get sucked in by this and only borrow what you absolutely need and know you can replay on time.
- Hitachi – 8.4% representative APR over 2-5 years
- Tesco Bank – 8.5% representative APR
- Hastings Direct – 8.7% representative APR
Loans Between £5,000 and £7,500
- Tesco Bank – 3.4% representative APR over 1-3 years
- MBNA- 3.5% representative APR
- John Lewis – 3.6% representative APR
Loans Between £7,500 and £15,000
- Cahoot – 2.8% representative APR
- TSB- 2.8% representative APR
- M&S – 3.9% representative APR over 1-7 years
At the moment, these are the personal loans available with the best rates.