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Small loans
Compare our best small personal loans
MoneySuperMarket is a credit broker not a lender. You must be 18 or over and a UK resident.
What is a small loan?
A small loan is a means of borrowing money where you don’t have to put up any assets, such as your home, as security. It’s often called an unsecured personal loan.
There’s no specific definition of what makes a small loan, but most UK lenders consider sums of anything from £500 to around £3,000 as ‘small’.
We can help find the right loan for you at the lowest interest rates, which should save you money when it comes to repayments. Our eligibility checker also shows you your chance of being accepted for different loan deals so you’ll know where you stand.
How do small loans work?
Find a loan: Compare deals to find the best rates depending on how much you want to borrow and for how long
Make an application: Once happy with the conditions of your loan, click through to apply online directly with your chosen lender
Get approved for the loan: The lender will look at factors including your credit score and income before approving your loan. Funds are paid directly to your nominated bank account
Pay back what you owe: Start paying off the loan in monthly instalments including interest over a set term until you have cleared what you owe
How much will my loan cost?
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.
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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 can I use a small loan for?
A small loan can have many different uses, including:
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Car repairs
Cover the cost of unexpected maintenance or MOTs
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Home improvements
Pay for upgrades like new flooring or appliances
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Debt consolidation
Combine existing debts into one monthly payment
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Emergency expenses
Cover urgent bills like medical or vet costs
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Weddings or events
Help manage the cost of a special occasion
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Appliance replacement
Replace essential items like fridges, boilers, or laptops
How much can I borrow with a small loan?
Small loans can start from £100 and typically go up to £5,000. You can apply for a small loan amount of your choosing, but it will be up to the loan provider to decide whether to approve your loan and what terms to offer, including the interest rate.
These are some of the most common small loans available:
You might pay a higher interest rate for borrowing a smaller amount, but you may also be able to clear the loan more quickly. It’s worth using our eligibility checker to make sure you’ll be approved for a personal loan before you apply.
How quickly can I get the loan?
You could get a small loan instantly or within a few minutes if approved online by some lenders. Others may take a few hours or up to 1–3 working days, depending on their checks and your bank.
Approval times can vary by provider and whether you apply during business hours.
How long can I borrow a small loan for?
Small loans typically come with repayment terms from 3 months up to 5 years. The exact length depends on the lender, the loan amount, and your credit profile.
Shorter terms mean higher monthly payments but less interest overall, while longer terms reduce monthly costs but may cost more in total. Always choose a term that fits your budget.
What are the pros and cons of smaller loans?
There are a number of things to consider before you borrow a small loan, including:
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Advantages
Borrowing a smaller sum means lower monthly repayments
You may be able to pay off the loan more quickly
You don’t have to put down security to be approved
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Disadvantages
Interest charges mean you’ll always pay back more than you borrow
Smaller sized loans tend to have higher interest rates
If you miss a repayment it will negatively affect your credit rating
Am I eligible for a small loan?
Eligibility criteria vary by lender, but you’ll usually need to meet the following requirements for a small loan:
Be at least 18 years old. Some lenders may require you to be 21 or older
Be a UK resident. You’ll need a permanent UK address
Have a regular income. This could be from employment, self-employment, or a pension
Pass a credit check. A good credit history improves your chances, but some lenders accept lower scores
Have a UK bank account. Necessary for the loan payout and monthly repayments
Can I get a small loan with bad credit?
It’s possible to get an unsecured personal loan even if you have struggled with debts and your credit history is patchy, but it’s unlikely you’ll be offered the best deal.
There are a number of lenders who specialise in bad credit loans, but you may be asked to pay a higher interest rate or you won’t be able to borrow as much as you would like.
Will base rate cuts make loans cheaper?
The Bank of England reduced its base rate to 4% in August 2025. When the base rate is reduced, lenders often lower their Annual Percentage Rates (APRs) on loans, making borrowing more affordable.
However, not all lenders adjust their rates at the same pace. Some may quickly pass on the savings to borrowers, while others may delay or make smaller adjustments.
Therefore, it's important to compare offers for small loans from different lenders to ensure you benefit from the most competitive APRs in the market.
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What do I need to consider before getting a small loan?
Before you apply for a small loan, ask yourself the following questions:
Do I really need to borrow?
Only take out a loan if it’s necessary and there’s no cheaper way to cover the cost. Borrowing always comes with added interest or fees.
Can I afford the repayments?
Make sure monthly repayments fit comfortably within your budget. Missing payments can lead to extra charges and damage your credit score.
Have I compared deals?
Interest rates and terms vary widely, so it pays to shop around. Use comparison tools to find the best deal for your needs and credit profile.
What happens if I miss a repayment?
ou could face late fees, higher interest, and a negative impact on your credit report. This can make future borrowing more difficult and expensive.
Is the loan right for my situation?
Check if a shorter or longer term works best for you. A smaller loan might be better repaid quickly, while spreading costs could ease pressure on your budget.
How do I choose the best small loan?
Before applying for a small loan, make sure you have chosen the best one for you and your circumstances. Consider the following.
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Don’t borrow more than you need
Keeping the loan amount down means the amount of interest you have to pay will also be lower
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Find a low interest rate
Focus on securing a loan with a competitive interest rate to minimise the overall cost of borrowing
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Get the best repayment terms
Look for manageable monthly payments without over-extending the length of the loan, so you don’t pay more than necessary
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Check for fees and charges
Carefully review any charges, so you're aware what happens if you miss a repayment or want to clear the loan early
Is a small loan right for me?
A small loan could be right for you if you need to cover a one-off expense and can afford the monthly repayments. Before applying for a loan, use our eligibility checker to see your chances of approval before affecting your score.
It’s important to be sure the loan fits your budget and that you’ve explored all other options first like borrowing from family or friends, or using a credit card with a lower interest rate.
Always compare deals to find the best rate and terms before you apply.
How to compare small loans with MoneySuperMarket
Find the right small loan for you and see which rates you could get.
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It doesn’t take long
Tell us about yourself, your finances and the loan you’re after. If you’re looking to borrow less than £1,000, select ‘Other’ and let us know the amount and how long you want to repay the loan
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We’ll browse the market
We’ll search through loans from a wide range of lenders to find the right loan for you. You’ll be able to see your chances of being accepted for different quoted loan deals.
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Choose your loan
You’ll be able to sort loans by the overall cost and the likelihood you’ll be accepted. Once you’ve made your decision you’ll be able to apply directly with your chosen loan provider
What are the alternatives to a small loan?
Interest rates on small loans can be high so you may want to look at possible alternatives before making a final decision. Other options could include:
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Purchase credit cards
Many cards offer low or 0% interest on purchases for the first few months. Try to clear your card balance before the end of the introductory period or interest rates will climb.
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Money transfer credit cards
Borrow cash through a credit card and transfer it immediately to your current account at low introductory rates. Aim to pay off the balance before the rate rises .
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Agreed overdraft
It may be possible to get a small authorised overdraft at 0% interest which could be a convenient way to borrow short term. But some agreed overdrafts are expensive.
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Borrow from friends and family
This may be a cheaper option, but consider it carefully as it could put relationships under stress, especially if you struggle to pay back the money.
Our expert says…
Whatever you need a small loan for, from paying for car repairs to funding home improvements, there are lots of options to choose from. It’s a competitive market and that’s why you should never pick the first offer you’re given. It’s also important to look at all the costs involved, including the total amount you’ll pay in interest and any other charges, such as early repayment fees, if you’re able to clear the debt sooner.
Kara Gammell Personal Finance & Insurance Expert
Trusted Service Awards Winners
MoneySuperMarket has won the Feefo Platinum Trusted Service Award, an independent seal of excellence, which recognises businesses that consistently deliver a world-class customer experience.
Can I get a small loan if I’m unemployed?
You might be able to get a small loan if you are unemployed. If you receive benefits, for example, you may still be able to borrow, provided you can show you have the means to make the monthly repayments.
Be confident you can pay the money back. If you start missing repayments you will make your financial situation worse, drop further into debt and it could harm your credit rating – making it more difficult to borrow in the future.
What is a payday loan?
A payday loan is usually a small sized loan and taken out over a short-term (such as one month). They were originally designed as loans to help tide you over until payday. Typically they have high interest rates and should be seen only as an emergency measure. MoneySuperMarket doesn’t offer a comparison for payday loans.
What happens if I miss a repayment on my small loan?
If you miss a loan repayment, contact your lender immediately to explain the situation and discuss options. This holds true whether you’ve missed the payment in error or you don’t have the funds available.
This can help rectify the situation and prevent further financial charges or a blemish on your credit record. If it was an oversight on your part, consider setting up a direct debit asap to make sure the same mistake doesn’t happen again.
If you’re struggling financially, keep communication open with your lender and work together to find a suitable solution. This may involve setting up a revised repayment plan over a longer term.
Can I apply for a small loan if I am self-employed?
There is nothing to stop you applying for a small loan if you are self-employed, but the loan provider will want to see evidence that you have enough income to afford the loan repayments. Tax returns, bank statements, and business records can help support your application.
Can I take out more than one small loan at a time?
It's possible to have more than one personal loan, but it depends on your credit history and affordability. Lenders will assess your existing debts and income to decide if you can manage another loan responsibly.
Can I repay my small loan early?
Yes, many lenders let you repay your loan early, but some may charge an early repayment fee. Always check the terms and conditions so you know exactly what costs could apply.
Do I need a guarantor for a small loan?
Most small personal loans don’t require a guarantor. However, if you have a poor credit history, some lenders may offer guarantor loans as an alternative – where someone else agrees to repay if you can’t.
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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 10 Dec 2025 by
