and “online”.The need to borrow money often arises unannounced, and having the right loan in place can be a lifesaver. From bad credit loans to home loans and personal loans, there are several loan options available in the UK. But if you’re looking for quick and easy access to cash, then online loans are the way to go.
In this guide, we’ll help you understand the key features of the best online loans available in the UK, so that you can make the best choice for your current financial situation.
What are Online Loans?
Online loans are a form of personal finance solution that can be used to meet current funding needs. These loans are obtained online, offering a fast and convenient way to access short-term or long-term funding.
When you apply for an online loan, you are given an online application form that can be filled in from the comfort of your own home. Once you’ve submitted the loan application, lenders assess your creditworthiness and financial situation to determine the loan amount you’ll be approved for.
Online loans can be used for a variety of purposes, such as consolidating multiple loans, paying for medical bills, and so on. With the right loan option, you can manage your expenses efficiently while saving money in the long run.
What are the Types of Online Loans?
When it comes to online loans, there are three main types available in the UK:
Personal loans are the most popular form of loan in the UK. You can apply for a personal loan to cover a variety of expenses, including medical bills, consolidating debt, and more.
The best online personal loans offer competitive interest rates from 4.80% to 36%, and you can usually receive your funds in as little as 15 minutes after approval.
Home loans are a form of mortgage finance that allow homeowners to borrow money against their property. These loans are usually for large amounts, and you’ll receive your funds in one lump sum.
Home loans tend to offer slightly lower interest rates than personal loans, with competitive APRs from 6% to 26%. You’ll be able to access your funds within a few days of approval.
Guarantor loans are a form of loan secured by a third-party guarantor. This can be a family member or friend who pledges to repay the loan if the borrower fails to do so.
These loans are usually for amounts up to £15,000 and APRs can range from 14% to 54%. The repayment period may be as short as 3 months or as long as 7 years.
Our Picks for the Best Online Loans in the UK
Finding the right loan option can be tricky, but here’s our review of some of the best options available in the UK.
Best Good Credit Personal Loan: Sainsbury’s Bank Nectar Cardholder Loans
Sainsbury’s Bank Nectar Cardholder loan is our top pick for borrowers with good credit. This loan provides competitive interest rates and a flexible repayment term of up to 8 years.
Plus, the loan application process only takes a few minutes and you can get your money in just 10 days.
Best Bad Credit Personal Loan: Ocean Finance
If you have bad credit, then Ocean Finance is our top pick. With this loan option, you get competitive interest rates and flexible repayment terms of up to 7 years.
Plus, Ocean Finance will consider applications from borrowers with bad credit, so you don’t need to worry about your credit score.
Best Homeowner Loan: United Trust Bank
If you’re a homeowner looking to take out a loan, then United Trust Bank is our top pick.
This loan option provides competitive interest rates and offers loan amounts of up to £250,000. Plus, you get a flexible repayment term up to 15 years, so you can comfortably manage your finances.
Best Fast Personal Loan: Lloyds Bank (Existing Customer)
If you need immediate access to funds, then Lloyds Bank (existing customers only) is the best option.
This loan offers a minimum loan amount of £2,000 and a maximum loan amount of £30,000. Plus, you can get your funds within 24 hours of approval.
Best Option for Poor Credit: QuidMarket
If you’re looking for a loan with bad credit, then QuidMarket is the best option. With this loan option, you can borrow amounts from £300 to £1,500 over a period of 3 to 6 months.
Plus, QuidMarket will consider applications from people with poor credit.
Best Fast Loan: Instant Lolly
If you’re looking for fast access to funds, then Instant Lolly is the best option. With this loan option, you can receive loan decisions in minutes and get your funds within 15 minutes of approval.
Plus, you can borrow amounts from £100 to £3,000 over a period of 1 to 24 months, so you can easily manage your expenses.
The Bottom Line
Online loans are a convenient and fast option for borrowing money in the UK. There are several types of online loan options available, each with its own set of features and benefits.
To find the right loan option for your current financial situation, use our guide of the best online loans available in the UK. With the right loan, you can access the funds you need in a quick and convenient way.