To apply for a loan online, you must be 18+ and a UK resident with a NatWest current account (held for 3+ months)
A personal loan is a simple way to borrow money. A lender gives you a lump sum, which you pay back in regular instalments over a period of time, usually with interest on top.
Personal loans are also known as unsecured loans as they don't require to be fixed to an asset.
Applying for and managing a personal loan should be straightforward. It starts with a one-off cost that you’d struggle to afford all at once. A loft conversion or a new car, for example. After researching different options and successfully applying, your lender will give you a lump sum to spend.
You’ll pay back what you’ve borrowed, plus interest, in instalments over a specific period.
Loans come in a range of shapes and sizes. Here are some key things to consider during a personal loan comparison:
When exploring your options, you’ll see that most personal loans are ‘unsecured’. It simply means no assets, like your house or car, are tied to the loan. You’re still obliged to pay back the borrowing and failure to do so could impact your credit file (and impact your ability to obtain other credit), plus result in legal action by the lender to recover the debt, plus costs.
Some personal loans are advertised as 'secured' instead. These could offer larger borrowing amounts, above £10,000. They may have lower interest rates too. But in exchange, you’ll need to put an asset up as security. This could be taken away if you struggle to keep up with repayments. View our guide if you are struggling financially.
You’ll usually see ‘fixed’ interest rates advertised in personal loan comparison tables. With a fixed loan, your interest won’t rise or fall during the repayment term. So you’ll know exactly what you need to pay each month.
On the other hand, lenders sometimes offer ‘variable’ rates instead. In these cases, your interest rate – and so your payments – could change.
Representative 7.1% APR
This rate is available on loans between £7,500 and £14,950. Other loan amounts are available at alternative rates. Our rates depend on your circumstances and loan amount and may differ from the Representative APR.
Personal loan applications may vary between lenders. But here are some common steps to follow:
For more please check out our guide on applying for a loan.
