Which lender should I choose for the best personal loan?

Getting the best personal loan rates is unique to you and your circumstances. A bank isn’t always the place to find the cheapest personal loans with the best interest rates.
Interest rates affect all kinds of credit, borrowing and savings. Banks and lenders use the Bank of England base rate to decide the interest rates they offer.
If you get a loan offer from your bank, it’s a good idea to compare it with at least two other personal loans. Then you can make sure you’re getting the best possible personal loan rates available.

Banks vs. online lenders

Lots of different kinds of lenders offer unsecured loans. Finding the best personal loans for you will depend on your loan requirements and how you want to communicate with your lender.
If you’d rather speak to someone in person about your loan, a bank might be a better place for you to look for the best unsecured loans. If you’re happy to do everything online, an online lender might be able to offer you the best personal loan rates.

A selection of some of the best personal loans

AA loans
If you’re looking for the best personal loans with low APRs and extra benefits you could consider AA loans. An AA loan could provide you with cash from £1,000 up to £25,000, with an APR as low as 3.1%, depending on your situation.

Post Office loans
These are good for borrowing large amounts of money at fixed, low APRs. A Post Office personal loan is usually a good-rate, solid, no-frills option.

Zopa
Best personal loans for digital savvy customers. Zopa is a peer-to-peer lending company that aims to give customers access to simpler, better value, stress-free loans.

Shawbrook
Best for large personal loans and transparency. It offers personalised rates and a clear, simple approach to lending.