Unsecured personal loans
A flexible way to borrow without needing to secure the loan against any assets – usually repaid in monthly instalments over one to five years.
£20,000 loans
Compare great deals on £20,000 loans
MoneySuperMarket is a credit broker not a lender. You must be 18 or over and a UK resident.
Compare loans from 52^ lenders, right across the market
We do the heavy lifting, so you don't have to. We work with leading providers to help you borrow the money you need.
How do £20,000 loans work?
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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 terms to find the best deal.
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Receive and spend the funds
Whether for home improvements, debt consolidation or major expenses, a £20,000 loan gives you flexibility.
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Repay in monthly instalments
Make regular repayments over a fixed term. You could save money by paying off early, but check for any early repayment charges first.
Use our handy loans calculator
Loan calculator
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.
Afford to borrow
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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.
What type of loan could I get?
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Secured loan
You might be offered slightly better rates, but you’ll have to tie the loan to your property. It means if you fail to repay what you owe the lender could take your home.
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Guarantor loan
An option if you're struggling to get accepted alone – your guarantor will need a strong financial profile.
How much does a £20,000 loan cost?
MoneySuperMarket data from May 2025 indicates that the average APR for someone taking out a loan of more than £20,000 is 8.6%, with a typical loan term of 5 years. Here’s what that would cost:
Loan details | Amount |
|---|---|
Loan amount | £20,000 |
APR | 8.6% |
Monthly payment | £408 |
Total interest paid | £4,492 |
Total repayment amount | £24,492 |
What can I use a loan for?
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Give your home a boost
Planning a new kitchen, bathroom upgrade or some serious landscaping? A loan can help you invest in your property and add value too.
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Clear existing debts
Streamline your finances by consolidating credit cards, overdrafts or other loans into one monthly repayment – often at a better rate.
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Finance a new car
From your daily commute to weekend road trips, fund your next car with predictable payments that suit your budget.
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Pay for your big day
From the venue to the honeymoon, cover wedding costs upfront and pay it off in manageable chunks over time.
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Bridge the gap between properties
If you're buying a new home before selling your current one, a bridging loan can help with the transition.
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Treat yourself to a dream holiday
Whether it’s relaxing on a tropical beach or travelling across Europe, a personal loan could help turn your plans into reality.
What are the pros and cons of taking out a £20,000 loan?
Before you take out a £20,000 loan, consider the following:
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Pros
Gives you access to a significant amount of money for things like renovations, a car purchase or consolidating large debts
You may get a better APR than you would on smaller loan amounts if your credit rating is strong
You can often choose repayment terms from 3 years upwards depending on the lender
Paying on time each month can help build or maintain a solid credit history
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Cons
You could end up paying thousands in interest over the life of the loan
Approval may require more thorough credit and affordability checks
Early repayment fees can reduce the benefit of clearing the debt ahead of schedule
A larger loan brings greater long-term financial risk if anything goes wrong
Am I eligible?
Borrowing £20,000 usually comes with stricter checks, and a strong credit history is often essential. Some lenders may even ask for collateral, depending on your circumstances.
To be eligible, you’ll likely need to:
Be at least 18 and UK-based
Show stable, regular income
Pass detailed credit and affordability assessments
Have a UK bank account
In some cases, offer security such as your home
If your credit rating is weak, you might face higher rates or be declined for unsecured options.
Can I get a £20,000 loan with bad credit?
If you’ve had debt problems in the past and you have a low credit score, it’s likely to be more difficult to get a £20,000 loan.
But you may be able to:
Borrow a smaller loan amountUse specialist lenders who can offer bad credit loan deals
Expect to be offered higher interest rates if you have got a less than perfect credit history.Aim to build your credit score by getting a free copy of your credit report and reading our hints and tips on how to improve your rating.
Will a £20,000 loan affect my credit score?
Managing a £20,000 loan responsibly by never missing payments can enhance your credit rating as it proves you handle significant debt well.
In contrast, late or missed payments could seriously harm your credit, making it more challenging or expensive to borrow later.
To avoid applying blindly, use our eligibility checker when you compare offers to assess your likelihood of approval before you proceed.
How do I choose the best £20,000 loan?
Before borrowing £20k, make sure you’re choosing the right deal:
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Assess repayment term
Longer terms reduce monthly payments but increase interest paid overall
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Choose trusted lenders
Stick with well-known or FCA-regulated lenders for peace of mind
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Consider secured loans
You might get lower rates, but there’s risk to your assets
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Understand APR vs. interest rate
APR includes any fees and is the best way to compare cost
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Use loan eligibility tools
Check which loans you're likely to be approved for without harming your credit score
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Will base rate cuts make borrowing £20,000 cheaper?
The recent base rate cut to 4.25% could work in your favour if you’re looking to borrow £20,000. Lower base rates can lead to cheaper interest costs on large loans.
Still, not all lenders adjust their rates straight away. It might take time for some to respond – and others may not change their pricing at all. It’s wise to check current offers to see where you stand.
Tips for a successful loan application
Before lenders offer loans, they consider your personal circumstances, like your outgoings, income, and previous borrowing history. For a successful loan application, consider the following:
Meet the lender's basic criteria, like being a UK resident
Lenders often require you to:
Be over 18
A UK resident
If you don't meet this criteria, lenders are very unlikely to enter a loan agreement with you.
Limit your credit applications
Every time you apply online for a form of lending, like credit cards, mortgages, or loans, the lender will perform a 'hard credit check' which shows up on your credit file.
If you have multiple hard checks over a short period of time, this is a red flag to lenders and may reject your application.
We recommend using a loan eligibility checker to perform a soft search and find lenders where you have a higher chance of being approved.
Review your credit report and address any issues
Lenders will check your credit file, so before you start making applications you should review your report and address any errors before applying, including:
Existing credit agreements
Your financial links with other people (including ex-partners)
Missed payments
Beyond errors, check you're registered on the electoral roll and take steps to improve your credit score - it could make a big difference to your monthly repayments and wider loan eligiblity.
Why compare £20,000 loans with MoneySuperMarket
Searching for the right loan for you is easy – and it won’t affect your credit score.
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It's quick and simple
Tell us a bit about you and the loan you're after. Once you've found the right loan, you can click through to the provider and complete your application within minutes.
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We'll search the market
We have a wide range of leading lenders for you to compare loans from. When searching with us, you can order loans by likelihood of you being accepted to ease any fears of rejection.
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It won't harm your credit score
Comparing loans with us won't harm your credit score as we only carry out a soft search. We'll also show your chances of being accepted for a loan.
Our expert says…
As you’d expect, you’ve got the best chance of being approved for larger loan amounts, such as £20,000 or above, if your credit score is ‘excellent’, or if you’re putting up an asset as security. If you find you’re not eligible for larger loan amounts, you’ll need to take steps to improve your credit score. The good news is that there are lots of simple, quick things you can do to that. And the better news is that you’ll find them all in our handy tipsheet.
Kara Gammell Personal Finance & Insurance Expert
How to apply for a £20,000 loan with MoneySuperMarket
We’re here to help find the right loan for you, so we’ll tell you which rates you’re guaranteed to get.
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What does APR mean?
APR stands for annual percentage rate, and it basically means the interest rate at which you’ll pay back the £10,000. It includes the main interest rate of the loan, but also takes any other fees and charges into account so you get a better picture of the loan’s total cost.
When you see a representative APR advertised on a loan, it means this rate must be offered to at least 51% of applicants – you won’t be guaranteed to get this rate yourself, as this will be based on your personal circumstances.
What is a soft search?
A soft search is how we find out where you stand in terms of getting a loan without affecting your credit report, so you can find a loan you’ll be eligible for without damaging your chances of being successful when you apply.
What credit score do I need to get a 20,000 loan?
For an unsecured personal loan of £20,000 you’re likely to need a strong credit score to be eligible. Other loan options could be available if your credit score is lower, such as secured loans, but you may not be able to borrow as much as £20,000.
Can I pay off my £20k loan early?
If you think you may want to pay off your £20,000 loan early find out what early repayment penalties apply on the loan before you take it out. Most loans apply an early repayment charge, but they can vary – and some loans may not impose a charge.
Can I take out a joint loan for £20,000?
Yes, it is possible to take out a joint loan for £20,000. Joint loans allow two or more people to apply together, combining their incomes and credit histories. This can increase the chances of approval and may provide access to better loan terms. However, all parties involved will be equally responsible for repaying the loan, so potential risks should be carefully considered before applying.
What should I consider before I get a £20,000 loan?
There are a few key things to consider before taking out a £20,000 loan:
Do I really need to borrow the funds? Ask whether the purchase justifies the borrowing and whether the loan amount can be reduced or split.
How can I make sure I am getting the best deal? Use a loan comparison site such as MoneySuperMarket to check interest rates, term lengths, and lender reviews.
Can I afford to meet repayments? Do the math to ensure repayments fit into your long-term budget and leave room for unexpected costs.
What happens if I miss a payment? A missed payment can trigger fees, hurt your credit score, and affect future applications for credit.
What happens if I want to pay the loan off early? You can often pay early, but check whether the lender charges early repayment penalties.
How quickly can I get a £20,000 loan?
You could get a £20,000 loan within one to two working days if you apply online and meet the lender’s criteria. Some providers offer same-day approval and transfer. It may take longer if the lender needs extra documents, you're requesting a secured loan, or your credit score is lower.
Will I get the representative APR?
A £20,000 loan might come with a higher APR than advertised if your credit isn't strong. The representative rate is only a benchmark. Lenders tailor rates to your financial background, so it pays to check your credit report first.
How long will repayments on a £20,000 loan take?
Many lenders offer terms between two and seven years for this amount. Longer terms are more manageable monthly, but cost more in total. Bigger loans may qualify for more flexible plans, but it depends on your lender. You can usually repay early, though some lenders may charge a fee.
Is a £20,000 loan right for me?
A £20,000 loan can be helpful – but only if you truly need it. Consider saving instead if the expense isn’t urgent.
Check your credit score first – it’ll affect the rate you’re offered and whether your application is approved.
It’s a long-term commitment. Make sure you could afford the monthly repayments even if your circumstances change.
What are the alternatives to a £20,000 loan?
There aren’t many options at this level, but you may have a few depending on your circumstances.
Use your savings: If available, this avoids debt altogether. Make sure you’re not depleting emergency funds you may need later.
Borrow from family: If your family can help, it could be cheaper than a bank loan. Ensure everyone understands and agrees to the terms.
Home improvement or car finance: Specialist borrowing may suit if the loan is for a specific purpose. Terms can vary, so check the full cost.
Equity release (if over 55): This lets homeowners access value from their property. It’s a major financial decision, so take professional advice before proceeding.
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You might be wondering if we work with all the companies in the market, or if our commercial relationships with our partners might make us feature one company above another. We’ve got nothing to hide, and we want to give you clear answers when it comes to questions like these, so we’ve pulled together everything you need to know on this page.
Lenders
Curious about who’s behind the loans? Take a look at each lender’s page below to learn more:
Reviewed on 10 Dec 2025 by
