How to borrow money from family and friends
Feeling awkward may not be the only consideration when it comes to asking your loved ones for a loan.
£1,000 loans
Compare great deals on £1,000 loans.
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How much does a £1,000 loan cost?
MoneySuperMarket data from May to August 2026 indicates that the average APR for someone taking out a loan between £1,000 and £2,999 is 37.6%, with a typical loan term of 2 years. Here’s what that could cost:
Loan details | Amount |
|---|---|
Loan amount | £1,000 |
APR | 37.6% |
Monthly payment | £57 |
Total interest paid | £371 |
Total Repayment amount | £1,371 |
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Find out what monthly repayments would be, how much you'll pay overall and how much you could borrow.
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Based on the information you supplied, you would be borrowing XXX and repaying the loan in XXX monthly instalments of . The total sum to repay, subject to XXX% APR over the full loan term would be XXX. This assumes there are no extra fees and that your payments are made on time and in full.
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Based on the information you supplied, you could borrow XXX at a monthly repayment rate of to be paid over XXX monthly instalments. Over the full loan term at XXX% APR, the total amount repayable would be XXX. This assumes there are no extra fees and that your payments are made on time and in full.
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The maximum personal loan is £50,000
If you need a larger amount, consider a secured loan, which will allow you to borrow more but uses your home as collateral. Be aware that lenders can sell your house if you fail to keep up with repayments.
How do £1,000 loans work?
A £1,000 personal loan lets you borrow a fixed amount and repay it, with interest, over an agreed period.
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Compare your options
Use a soft search to check your chances of approval without affecting your credit score. Then compare interest rates and repayment terms to find a deal that suits you.
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Receive and spend the money
You could use a £1,000 loan for things like an unexpected expense, car repairs or a household purchase. If you're approved, the lender will usually pay the money into your bank account.
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Pay it back
Make regular repayments over a fixed term until the loan is paid off. A longer repayment term can lower your monthly payments, but may mean paying more interest overall.
How do I choose the best £1,000 loan?
Before borrowing £1,000, make sure you’re choosing a deal that works for you.
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Assess the repayment term
A longer term can reduce your monthly payments, but you may pay more interest overall. Compare different repayment periods to see what works for your budget.
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Compare the total amount repayable
Look at the total amount you'll repay, not just the monthly cost. Interest rates on smaller loans can vary significantly, so comparing the overall cost is particularly important.
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Check what you can afford
Make sure the repayments fit comfortably within your budget alongside your regular bills and other financial commitments.
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Understand APR
APR, or Annual Percentage Rate, includes the interest rate and certain fees or charges, helping you compare the cost of different loans.
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Check your eligibility
Check which loans you're likely to be approved for without harming your credit score. This can help you narrow down your options before making a full application.
Top tips for a successful loan application
Check you meet the lender’s criteria
Lenders usually have basic eligibility requirements, such as being aged 18 or over and being a UK resident. Check these before you apply so you don’t make an application for a loan you’re unlikely to qualify for.
Limit the number of applications you make
A formal loan application usually involves a hard credit check, which appears on your credit file. Making several applications over a short period could reduce your chances of being accepted. Using an eligibility checker first can help you see which loans you’re more likely to qualify for without affecting your credit score.
Review your credit report
Check your credit report before applying and make sure the information is accurate. Look for things like existing credit agreements, missed payments and financial links with other people. It’s also worth checking you’re registered on the electoral roll at your current address.
Kara Gammell
Personal Finance & Insurance Expert
What does APR mean?
APR or Annual Percentage Rate is the interest rate at which you pay back money you’ve borrowed. It takes into account the actual interest rate you pay, plus any other fees or charges involved in the deal, to give you a more complete picture of what your loan will cost.
When you see a rate advertised as the representative APR, this means the lender is required to offer this rate to at least 51% of applicants – however it doesn’t mean you’re guaranteed to receive this interest rate yourself. You could be offered a higher or lower interest rate than those advertised. The APR you’ll be offered by a lender will be primarily based on your financial circumstances and your credit score.
What is a soft search?
A soft-search or soft-application is a way of finding out where you stand in terms of getting a loan without leaving a mark on your credit report. It’s a useful way of finding a loan you’ll be eligible for without harming your chances of being accepted.
How quickly will I receive the money?
Once you’ve been approved for a loan, depending on your provider, you could receive the funds into your bank account very quickly – this could be the next day, for example, or within the next week or two.
If you’ve applied by phone or post it may take slightly longer. Things can also take a bit longer if your application or your financial circumstances are more complicated.
Can I pay off my 1k loan early?
Typically most lenders will allow you to pay off part or all of your loan early, although there may be an early repayment charge. It’s best to check what this charge might be before you apply for the loan – if you think you may want to redeem early.
What happens if I miss a monthly payment?
Depending on your repayment terms, missing loan repayments can mean extra charges and interest will be applied by your lender – this could increase your debt burden and it could also have a negative effect on your credit score. If you’re struggling or you know you might not be able to afford your repayments speak to your lender immediately to explain the situation and work out a solution.
Can I get a £1000 loan without a guarantor?
It is possible to get a £1,000 loan without a guarantor if you meet the lender’s criteria. But in some cases, if you have a history of bad credit, the interest rates offered may be quite high. A guarantor loan is an option to consider for those who need a loan but have poor credit.
Can I get a £1000 loan without a credit check?
You can search and compare different loan deals on MoneySuperMarket and it will not affect your credit score in any way. But once you make a formal application for any loan in the UK the lender will do a credit check. This is to safeguard that the loan is suitable for you and affordable.
Will I get the representative APR?
You’re not guaranteed to get the representative APR on a £1,000 loan. Lenders only need to offer that rate to just over half of successful applicants. If your credit score is lower or your income is limited, you may be charged a higher interest rate.
How long will repayments on a £1,000 loan take?
Repayment terms usually range from 12 to 36 months. A longer term can reduce your monthly payments but may mean paying more overall in interest. Small loans like this often need to be repaid quicker. You can usually repay early, but check for any early settlement fees.
What should I consider before borrowing £1,000?
Thinking of borrowing £1,000? Here’s what to keep in mind:
Do I really need to borrow the funds? For such a small amount, consider how long it would take you to save up or whether there’s a cheaper or interest-free way to cover the cost
How can I make sure I am getting the best deal? Even small loans can vary in price. Compare APRs and try to avoid payday lenders with high rates
Can I afford to meet repayments? It’s a short-term commitment, but you’ll still want to budget carefully. Don’t apply for the loan if you won’t be able to meet the monthly financial commitment
What happens if I miss a payment? Missing even one repayment can lead to charges and hurt your credit score. Set up a direct debit and keep on top of when money is due
What happens if I want to pay the loan off early? Check if there are any fees. Lenders may allow early repayment without penalty for smaller loans
Is a £1,000 loan right for me?
Before taking out a £1,000 loan, ask yourself if you really need to borrow – could you save up instead and avoid interest charges?
Check your credit score too. A strong rating gives you access to better deals, while a lower score could mean higher interest rates. It might be worth improving it before applying.
Make sure you can comfortably afford the repayments now – and if your circumstances change. If the answer’s yes, and borrowing is the right option, comparing lenders can help you find a deal that suits your budget.
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Lenders
Curious about who’s behind the loans? Take a look at each lender’s page below to learn more:
Reviewed on 7 Sep 2026 by
Selected providers. SuperSaveClub restrictions and T&Cs apply. Click here for details.
YouGov Survey 1st July 2024 to 30th June 2025. Net Recommend score derived from “Which of the following online service websites would you recommend to a friend or colleague, or tell them to avoid?” Base: Current Customers of (MoneySuperMarket n=18,382, Compare the Market n=16,802, Go.Compare n=10,162, Confused.com n=8,229, Uswitch n=528).
Selected providers. SuperSaveClub restrictions and T&Cs apply. Click here for details.
SuperSaveClub restrictions and T&Cs apply. Click here for details.
Accurate as of 07 September 2026.
