Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk.
Representative Example: Amount of credit: £550 for 7 months at £122.43 per month. Total repayment of £857.02. Interest: £307.02. Interest rate: 150% pa (fixed). 313.1% APR Representative.

Best Loans in the UK

When people search for the best loans in the UK, of course what they're ultimately looking for is the best loan for them. Loans are certainly not a "one-size fits all" product. They're designed for people of all different credit profiles and in many different situations. So to get the best loan, you need to understand the different loan types available and choose which is best for you.

Common Loan Types

Short-term Loan: You may be familiar with the concept of short-term loans, which are loans designed to be repaid over the course of one or two pay periods. These loans are best used for people in financial emergencies that need money fast and can't borrow it from friends or family.

Instalment Loan: Instalment loans are longer-term loans that generally come in larger amounts than payday loans. These loans can be repaid over a longer period of time and are often best used for debt consolidation or larger expenses like medical bills or home repairs.

Line of Credit: Lines of credit come in different forms. The most common, credit cards are lines of credit you access with your card. However, when most people talk about or search for a line of credit, they're referring to a bank or online line of credit that allows you to take draws up to a designated credit limit, only paying interest on the amount you draw. They're good to have as a safety net, or if you have irregular income.

Taking Interest Rates Into Account

One of the most important considerations when looking for a loan is the interest you'll pay. Even if you can get the amount you want, a high interest rate will mean that you pay much more in the long term than you would for a loan with a smaller rate. Below, you can learn more about some ways that interest rates are determined and how you can work towards getting lower rates for your loans. If you're looking for funds, you should check to see whether On Stride Financial's loan amounts and interest rates make sense for you.

You can apply today for an On Stride Financial loan from £150 to £5,000. Loans are unsecured with a term between 6 months to 3 years, and annual interest rates from 50% - 275%. Actual loan amount, specific APR and loan duration may vary based on application details.

How Do Lenders Determine Interest Rates?

Lenders determine interest rates in complex ways, usually involving factors like determining a person's ability to repay the loan, overall affordability, government regulations, and economic analysis. As a consumer, however, there are four factors that will be most important when determining your interest rate: your credit rating, your previous relationship with the lender, your current financial situation, and the amount and length of the loan.

What these factors boil down to is trust — the more trust a lender has in a borrower's ability to repay, the lower the rates they're willing to offer. It's easy to see how this is the case when you consider each factor.

High credit ratings indicate a long history of timely repayments, evidence that an individual is likely to behave the same in the future. Similarly, if a borrower already has a good relationship with a lender — having repaid a loan with them in the past, for instance — the lender will be more confident that the borrower will repay again.

Finally, lenders can be more confident about borrowers' ability to repay when loan amounts are low and terms are short. If someone has the resources to repay a small loan now, they likely will still be able to in a week or a month. On the other hand, an unforeseen financial disaster might impair a borrower’s ability to repay a loan that is much larger or is scheduled to be repaid over a long period of time. A higher interest rate helps the lender reduce these risks.

Does On Stride Financial Offer the Best Personal Loans?

On Stride Financial offers personal instalment loans ranging from £150 – £5,000, with terms that last from six months to three years. This allows us to offer loans to a wide range of people, including people who have been looking for the best payday loans. Rather than taking out a loan for £1,000 and repaying it over one or two pay periods, On Stride Financial allows our customers to repay over six months or more.

With the ease and speed of our funding process and the top-notch customer support we strive to provide, we are happy to be considered among the best lenders in the UK. How do we know we are? Check out our customer reviews on Reviews.co.uk.

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On Stride Financial is rated out of 5 by Reviews.co.uk based on reviews