Unsecured Loans

An unsecured loan is a loan that doesn't have anything put up as security by the borrower such as a home which can be taken to cover the cost if a borrower defaults. Because there is no security it means that the lender is taking a greater risk and that in turn means that the interest rate of the loan will be relatively high. Read more...>

• Sainsbury's Finance Medium

• 6.1%

• 1 mth

• £7,500

• £15,000

• Get a decision in minutes
• Loan term 1 - 5 years
• Receive your cheque in 24 hours

• Must be over 18 to apply
• You will need your Nectar number

Representative Example: APR Representative 6.1% fixed; Rate of interest 6.1% fixed; Total amount of credit £10,000; Duration of Agreement 62 months (includes 2 months payment holiday); Monthly repayment £196.37; Total amount payable £11,782.20

• HSBC

• 6.2%

• 1 mth

• £7,000

• £15,000

• Instant credit decision
• Loan term 1 - 5 years
• Money transferred immediately if your application is agreed online

• Only available to existing HSBC current account customers

Representative Example: APR Representative 6.2% fixed; Rate of Interest 6.2% fixed; Total amount of credit £10,000; Duration of Agreement 5 years; Monthly repayment £193.47; Total amount repayable £11,608.19

• Nationwide

• 6.4%

• No

• £7,500

• £14,999

• Instant online decision
• Loan term 1 - 5 years
• Quotes tailored to individual circumstances and amount you borrow

• Available if you are a main FlexAccount customer

Representative Example: APR Representative 6.4% fixed; Rate of Interest 6.3% fixed; Total amount of credit £10,000; Duration of Agreement 50 Months; Monthly repayment £231.62; Total amount payable £11,349.38

• Santander

• 6.3%

• 1 mth

• £7,500

• £14,950

• Most decisions within 24hrs
• Loan term 1 - 5 years
• Available to both new and existing customers

• Must be over 21 to apply

Representative Example: APR Representative 6.3% fixed; Rate of Interest 6.3% fixed; Total amount of credit £10,000; Duration of Agreement 5 years; Monthly repayment £193.91; Total amount repayable £11,634.60

• Alliance & Leicester

• 6.3%

• 1 mth

• £7,500

• £20,000

• Get a decision in 24 hours
• Loan term 1 - 5 years
• Available to both new and existing customers

• Must be over 21 to apply

Representative Example: APR Representative 6.3% fixed; Rate of Interest 6.3% fixed; Total amount of credit £10,000; Duration of Agreement 5 years; Monthly repayment £196.12; Total amount repayable £11,767.20

• NatWest

• 8.9%

• 2 mth

• £1,000

• £25,000

• Online application - takes minutes to complete
• Loan term 1 - 5 years
• Money could be in your account the next working day (online banking customers only)

• Only available to existing NatWest current account customers

Representative Example: APR Representative 8.9% fixed; Rate of Interest 8.9% fixed; Total amount of credit £10,000; Duration of Agreement 5 years; Monthly repayment £205.40; Total amount repayable £12,324.00

• RBS

• 8.9%

• 2 mth

• £1,000

• £25,000

• Online application - takes minutes to complete
• Loan term 1 - 10 years
• Money could be in your account the next working day (online banking customers only)

• Only available to existing RBS current account customers

Compare Unsecured Loans

Even though the lender has no physical security they will of course have in place procedures for recovery of their debt. Although there is no asset to lose directly there will still be serious financial consequences to failing to pay off the debt.

In an unsecured fixed personal loan the amount, interest rate and time period of the loan are all fixed at the start of the agreement. In this way repayment budgeting is made clear and can be planned for.

If you are considering paying back the loan at an earlier date if possible to reduce your interest costs you should check whether there are any early repayment penalties before you take the loan.

In an unsecured flexible personal loan you can take out a variable amount up to a set limit and only pay interest on what you have borrowed. Again, that increased flexibility may well be off-set by a further increased interest rate.

As with all loans calculating a realistic amount that you can afford to pay back each and every month is an important consideration and from that you can begin to choose which loan is best for you.