Sometimes you just need a bit of extra financial help, maybe to cover an unexpected expense, tidy up your finances, or finally take that long-awaited trip. That’s where unsecured loans can come in handy. But what is it exactly? And where can you find one in the UK? In this article, we’ll explain everything you need to know about unsecured loans, and also introduce you to 5 best lenders, read and find out details!

1. Munzee Loans

Munzee Loans is a UK-based direct lender that specialises in short-term unsecured loans. They are FCA-regulated and focus on providing quick access to credit when you need it most.

Loan amounts:
You can borrow between £100 and £1,000.

Repayment terms:
Repayments are typically spread over 3 to 6 months.

Interest rates:
Munzee offers fixed interest rates, and the total cost of your loan is shown upfront, so there are no hidden fees. As a short-term lender, APRs are higher than traditional banks, but it’s transparent and tailored to people with various credit histories.

Who can apply?

• -UK residents aged 18 or older
• -Must have a regular income
• -Must have a UK bank account and mobile number

How to apply?
Apply directly through their website. The application is quick, and if approved, you may receive funds on the same day. They do an affordability check and may consider applications from those with poor credit.

2. Cash Float

Cash Float is another trusted online lender that provides unsecured short-term loans. They're known for responsible lending and giving second chances to those who may have struggled financially in the past.

Loan amounts:
You can borrow from £100 to £1,100.

Repayment terms:
Repayment can be spread over 3 to 6 months.

Interest rates:
The APR is representative of short-term credit, but Cash Float emphasises transparency. They only lend to people who can afford the repayments and show all costs clearly.

Who can apply?

• –Must be at least 18 years old
• -Must live in the UK
• -Must have regular income and a UK bank account

How to apply?
Applications are made online. They use soft credit checks at first, which won’t affect your credit score unless you proceed with the application. Most applicants receive a decision within minutes.

3. Lending Stream

Lending Stream is a well-known name for fast, flexible unsecured loans in the UK. They’ve been offering short-term credit since 2008 and are FCA-authorised.

Loan amounts:
You can borrow between £50 and £800 as a new customer (up to £1,500 for returning customers).

Repayment terms:
Repayment is spread across 6 months, with monthly installments.

Interest rates:
Lending Stream clearly shows the cost of borrowing and offers competitive rates for short-term lending. APRs are higher due to the short duration, but there are no hidden fees or early repayment charges.

Who can apply?

• -Must be over 18
• -UK resident
• -Must have a steady income
• -Must have a UK debit card

How to apply?
Their application is fully online. Many borrowers get approved and funded within 90 minutes of applying. They also have 24/7 loan access.

4. Tesco Bank

Tesco Bank offers larger personal loans compared to the short-term lenders mentioned above. Their unsecured loans are suited for bigger purchases like cars or home renovations.

Loan amounts:
Borrow from £1,000 to £35,000.

Repayment terms:
Choose repayment periods from 1 to 10 years, depending on your needs.

Interest rates:
Clubcard members may access lower rates, starting at around 6.0% APR. Rates are fixed, so your payments stay the same each month.

Who can apply?

• -UK residents aged 18–74
• -Lived in the UK for at least 3 years
• -Have a regular income
• -Must hold a UK bank account

How to apply?
Apply online with Tesco’s eligibility checker—this lets you see if you qualify without impacting your credit score. Once approved, funds usually arrive within 1–2 working days.

5. Barclays

Barclays is a leading UK high-street bank offering personal unsecured loans with flexible terms and competitive rates.

Loan amounts:
You can borrow from £1,000 to £50,000.

Repayment terms:
Terms range from 2 to 5 years, with some flexibility.

Interest rates:
Rates start from 5.5% APR depending on your credit profile. Barclays offers personalised quotes, so you know your actual rate before applying.

Who can apply?

• -Must be aged 18 or over
• -UK resident
• -Must have a stable income
• -Must pass a credit check

How to apply?
You can apply online, via the Barclays app, or in a branch. Existing customers may receive faster decisions and funds transferred the same day.

So, which one is right for you?

Choosing the right lender depends on how much you need to borrow and how quickly you need it. Here's a quick comparison in plain text to help you decide:

If you need a small loan quickly, with flexible approval even for less-than-perfect credit, Munzee Loans, Cash Float, or Lending Stream are great choices. They offer fast applications, transparent costs, and focus on short-term needs. Just remember, APRs are higher, so only borrow what you truly need and can repay comfortably.

If you’re looking for a larger loan with longer repayment terms, Tesco Bank is a reliable and transparent option, especially for Clubcard members. Their rates are competitive, and their process is straightforward.

For those who want a high loan amount with a traditional bank, Barclays offers the biggest loan size on this list—up to £50,000. If you’re already a Barclays customer, you might even get a better rate and quicker approval.

Ultimately, each lender has its strengths. If you’re borrowing under £1,000, the short-term lenders are worth considering. For larger needs, Tesco or Barclays may suit you better. No matter which route you choose, always check eligibility first to avoid unnecessary credit checks—and only borrow what you can realistically repay.

In case you have some doubts: what is an unsecured loan?

An unsecured loan is a type of personal loan that doesn’t require any form of security, such as your house or your car. Instead, the lender trusts that you’ll repay based on your credit history, income, and other financial information.

Because you don’t have to risk any assets, unsecured loans are generally safer for the borrower—but they often come with slightly higher interest rates. They’re commonly used for:

• Home improvements
• Car purchases
• Debt consolidation
• Holidays or weddings
• Unexpected bills

Read this article too, will help you – Guide to getting a loan in the UK.