Personal loan rates, interest & APR

Whether you’re looking for a £5,000 loan, a £10,000 loan or a £25,000 loan, one of the most important things you’ll need to consider is the potential interest rate you could pay over the duration of the loan period. Loan interest rates can vary depending on the amount you borrow and the loan term can also impact the loan rate you may be offered.

Credit subject to status to UK residents only. To apply you must have an annual income of at least £10,000 and be aged 18 or over. The loan amount and term you request will also impact the rate offered.

Representative APR indicates the Annual Percentage Rate of charge, which includes interest and any fees associated with a loan. You can use it to compare different credit and loan offers. Please note, there are no fees associated with this loan.

Interest rate per annum (fixed) indicated the amount you have to pay back on top of the amount you borrow, described as a percentage.

At the start of your loan, we will work out the amount of interest we can charge. Regulations set out the formula we need to use to work this out.

The formula allows us to charge daily interest from the date we gave you the loan up until 28 days after we receive your notice that you want to repay all of the loan early. It also allows us to charge an additional month of interest if your loan agreement said that your loan was repayable over a period of more than 12 months.

Usually, the amount of interest we can charge will be reduced as a result. In these cases, we’ll refund you the difference between the interest included in the total amount payable and this reduced amount of interest.  We will refer to this refund as a ‘rebate’ in our communications with you.

Sometimes we might not reduce the amount of interest we can charge. This could happen where your loan lasts longer than we state in your loan agreement. For example, where you have selected a repayment date that is later than one month after we give you the loan, and as a result your first repayment is delayed, or you have been late making your monthly payments.

If this happens, your monthly repayments towards the start of the loan will pay off more of the interest amount compared to if your loan lasted as long as we state in your loan agreement. But we’ll never actually charge you more interest than is included in the total amount payable. So, once you’ve paid the amount of interest included in the total amount payable, your remaining monthly repayments will just pay off the loan amount.  

This is why we might not reduce the amount of interest we can charge. Because even though you’re repaying your loan early, the full amount of interest will have already been paid or become payable.

Use our personal loan calculator to see how much your repayments are likely to be on the amount you would like to borrow. Explore the possibilities of what you can do with a personal loan in our guide.

Need to top up your loan? Thinking about an early settlement? If you've already got an M&S Personal Loan, we can help you manage it.