Personal Loans in UK — Who Lends and on What Terms
Updated 27 May 2026
Mainstream bank loans (Lloyds, NatWest, HSBC, Santander) require 6+ months UK address, UK credit history and a visa term covering the loan. Refugees and recent arrivals typically start with credit-builder cards before loans. Payday loans are capped by FCA. Guarantor loans have largely disappeared (Amigo 2023). Refugee Integration Loan: £100-£780, interest-free.
If you just arrived — credit-builder card first (Vanquis, Capital One), then personal loan after 6-12 months. Refugees: check the Refugee Integration Loan (£100-£780, interest-free, via gov.uk). For debt problems — free advice first (StepChange, Citizens Advice).
01 Mainstream personal loans (£1k-£50k)
Lloyds, NatWest, HSBC, Santander, Barclays — standard unsecured loans. APR 6-30% depending on credit profile. Typical requirements:
- 6+ months UK address
- UK current account (3+ months)
- Regular UK income
- Visa term covering loan duration
- No recent defaults or CCJs
02 Eligibility by status
- ILR / settled: standard access
- Refugees: 6-12 months UK + employment history + credit-builder first
- Skilled Worker / Family: 12 months + visa term ≥ loan term
- Student: usually not — Student Finance England/Wales instead
- Asylum seeker (pending): generally no access to mainstream loans
03 Payday loans — FCA cap
- Max cost: 0.8% per day
- Total cost cap: 100% of loan amount (you never repay more than double)
- Default fee: max £15
Credit union alternative: typically 42.6% APR max — significantly cheaper.
04 Refugee Integration Loan (RIL)
- Amount: £100–£500 single / £780 couple or family
- Repayment: up to 5 years
- Interest: none
- Apply within 12 months of refugee status grant
- Online: gov.uk/apply-for-refugee-integration-loan
General information only, not financial advice. For debt problems — StepChange (free) or Citizens Advice.