Taking out a loan can feel like a big step, but it doesn't have to be stressful. Whether you're planning a home improvement project, covering unexpected expenses, or just need a bit of financial breathing room, several reliable UK banks offer flexible personal loans. We selected 5 banks to show you the best loan in the UK.

First of all: what is a personal loan?

A personal loan is money you borrow from a bank or financial institution and pay back in fixed monthly installments, usually over 1 to 7 years. These loans are typically unsecured, meaning you don’t need to put up any collateral (like your home or car) to qualify.

You can use a personal loan for a range of purposes, such as consolidating debt, paying for a wedding, or funding a holiday. Your loan amount depends on your credit history, income, and the lender's criteria.

5 UK banks that offer personal loans

Let’s take a closer look at five well-known lenders you might consider when applying for a loan in the UK.

1. Zopa

Zopa started as a peer-to-peer lending platform and is now a fully regulated UK bank. It’s known for its digital-first approach, transparency, and excellent customer service.

Loan options:

• -Personal loans from £1,000 to £25,000
• -Repayment terms: 1 to 7 years
• -Fixed interest rates

Who can apply:

• -UK residents aged 20 or over
• -Must have a good credit history
• -Must have a regular income

How to apply: step by step

• 1- Get a free quote online (doesn’t affect your credit score)
  
• 2- Choose your amount and term
  
• 3- Upload your documents
  
• 4- Receive a decision—often within minutes
  
• 5- If approved, funds can arrive in your account the same day

Why people like Zopa:

• -Quick application
• -No early repayment fees
• -Soft search tool to check eligibility
  

2. Barclays

Barclays is one of the UK’s biggest high-street banks with a long history. It offers a range of financial products, including competitive personal loans.

Loan options:

• -Loans from £1,000 to £50,000
• -Terms from 2 to 5 years (or longer for some amounts)
• -Lower rates are often available for existing customers

Who can apply:

• -UK residents
• -Aged 18+
• -Good credit rating
• -Steady income

How to apply: step by step

• 1- Log into online banking or the app (if you’re an existing customer)
  
• 2- Check if you have a pre-approved loan offer
  
• 3- Apply online or in-branch
  
• 4- Receive a decision quickly
  
• 5- Funds are typically transferred the same day

Why people like Barclays:

• -Pre-approved offers for some customers
• -Manage your loan easily via app
• -Reliable, established bank
  

3. NatWest

NatWest is part of the Royal Bank of Scotland Group and is well known across the UK. It offers flexible personal loans for a variety of purposes.

Loan options:

• -Borrow between £1,000 and £50,000
• -Terms from 1 to 8 years
• -Fixed monthly repayments

Who can apply:

• -UK residents aged 18+
• -Must have had a NatWest current account for at least 3 months (for online applications)
• -Must pass a credit and affordability check

How to apply: step by step 

• 1- Log into your NatWest account (online or app)
  
• 2- Use the eligibility checker
  
• 3- Apply directly if eligible
  
• 4- Upload required documentation
  
• 5- Get the funds typically on the same day

Why people like NatWest:

• -Simple application process
• -Instant decision for many applicants
• -Loans tailored to existing customers
  

4. HSBC

HSBC is an international bank with a solid reputation. Their personal loans come with fixed rates and flexible terms, especially for current account holders.

Loan options:

• -Loans from £1,000 to £25,000 (up to £50,000 for some)
• -Repayment terms: 1 to 8 years
• -Special rates for Premier and Advance account holders

Who can apply:

• -Aged 18+, UK resident
• -Must have a regular income
• -Non-HSBC customers can apply, but existing customers may receive better rates

How to apply: step by step

• 1- Use the HSBC loan calculator
  
• 2- Check eligibility online (soft credit check)
  
• 3- Fill in the application
  
• 4- Receive a decision—sometimes instantly
  
• 5- Money is usually sent the same day

Why people like HSBC:

• -Competitive rates for loyal customers
• -Apply online, by phone, or in-branch
• -Reputable, global bank
  

5. Santander

Santander is another major UK bank that offers straightforward personal loans with manageable monthly payments.

Loan options:

• -Borrow £1,000 to £25,000
• -Loan terms: 1 to 5 years
• -Lower interest rates for 123 World and existing Santander customers

Who can apply:

• -UK residents aged 21+
• -Good credit score and regular income
• -Existing customers can apply via online banking

How to apply: step by step

• 1- Log in to online banking (if an existing customer)
  
• 2- Use the eligibility checker
  
• 3- Submit your application
  
• 4- Get a quick decision
  
• 5- Funds are usually paid within 24 hours

Why people like Santander:

• -Quick and easy process
• -Soft check won’t affect your credit score
• -Good rates for loyal customers
  

Comparing the 5 banks: which one’s right for you?

Choosing the right loan provider depends on your personal circumstances, your credit history, and whether or not you already bank with one of these institutions. Here’s a quick breakdown:

• Zopa is a great choice if you want a fully online experience and quick access to funds. It’s ideal for younger borrowers with a solid credit profile.
  
• Barclays is well-suited for people who already bank with them, especially if you’ve received a pre-approved offer.
  
• NatWest makes the process smooth for current customers, with competitive rates and flexible terms.
  
• HSBC offers reliable service and competitive rates for account holders, especially if you’re a Premier or Advance customer.
  
• Santander provides simplicity and speed, particularly for those already using their banking services.
  

Who can apply for a loan in the UK?

To apply for a personal loan in the UK, you typically need to:

• -Be at least 18 years old (some lenders require 21+)
• -Be a UK resident
• -Have a UK bank account
• -Have a regular income
• -Pass a credit check

Some banks may have additional requirements or offer different terms for existing customers, so it’s always a good idea to check the small print.

Choose wisely the best loan for you

Taking out a personal loan is a significant financial decision, but with the right information and a trusted lender, it doesn’t have to be overwhelming. Whether you’re upgrading your kitchen, consolidating debt, or funding a big life event, the five banks listed here offer safe, transparent, and accessible loan options.

Before applying, always:

• -Check your credit score
• -Use eligibility checkers
• -Compare interest rates and terms
• -Consider early repayment options or penalties

With a bit of research and a clear understanding of your financial situation, you’ll be well on your way to finding the right loan for you. Good luck!