Personal loan rates explained (July 2026)
Where a link is marked *, it is a partner link — we receive commission at no extra cost to you. Links without a * earn us nothing. How we make money.
Quick answer: Typical unsecured personal loan rates for strong credit profiles sit around 6–9% APR in July 2026 for £5,000–£25,000 over 1–5 years — verify live quotes after Bank Rate held at 4.25% in June. Representative rates exclude most borrowers; use eligibility checks before applying.
Personal loan rates move with Bank Rate and lender appetite. This hub explains what to compare — educational information only, not a personal recommendation or product offer. Never borrow for discretionary spending you cannot afford to repay.
Last reviewed:
Read the full credit cards & loans guide →Quick answer: Compare personal loans →Primary source: www.bankofengland.co.uk/boe-rate-database
Comparing total cost
Use the total amount payable, not just monthly payment. A lower APR over a longer term can cost more overall.
Common questions
Are payday loans ever worth it?
Almost never for routine borrowing — FCA price caps still make them very expensive. Credit unions, employer loans or budgeting advances may be cheaper emergency options.