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Personal Loans

Find out which loans you could be eligible for with our partner Aro and their trusted panel of lenders. Just like Asda Money, Aro is a credit broker, not a lender.

If you take out a product through Aro, Asda Money will receive a commission payment from Aro. The amount charged will be in connection with the specific product selected and so different amounts of commission are received. For more information please see our FAQs.

When you check your eligibility below you will be transferred to our partner Aro.

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Representative 29.7% APR
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Loans for all your needs

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    No impact on credit score

    With a soft search eligibility checker

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    Loans up to £25,000

    Loan amounts from £1,000 to £25,000

  • Quick online decision

    Review your loan options in minutes

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    Choose your repayment terms

    Loan terms from 1 to 7 years

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    Compare your options

    Multiple loan offers that are tailored for you and your circumstances

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    Fixed monthly payments

    Know what you're paying each month

What is a personal loan?

 

With a personal loan, you borrow a specific amount of money from a lender over an agreed term. You typically pay back the amount you borrow, plus interest, in fixed monthly instalments.

A personal loan can help in so many different ways, whether you want to take control of your finances, make some home improvements, or replace a worn-out car.

Asda is in partnership with Aro Finance Limited. Both Asda Money and Aro are credit brokers, not lenders. Aro provide access to a carefully selected panel of trusted lenders.

With one simple eligibility check, you can compare loans from these lenders and find the best offer for you and your circumstances.

You can check your eligibility safely without impacting your credit score in minutes and find personal loans up to £25,000 over terms from one to seven years.

Asda Money acts as a credit broker and earns a commission if you choose to take out a loan product. Terms and conditions apply. 

Personal Loan Calculator

 

Our personal loan calculator helps you to:

 

  • Understand what your monthly repayments may be: Our loan calculator will give you a monthly figure based on the total repayable amount of a loan to help you decide what you can afford.

 

  • See how annual interest rates affect your monthly repayments: You can play around with different annual percentage rates (APRs) to see how this affects how much you need to pay. 

 

  • Understand how the length of the loan impacts your monthly repayments: Changing the loan term will either increase or decrease the monthly repayments. It helps you see what you can afford and how much you’ll pay back over the whole term.

 

  • Discover the potential for your financial future: With all the figures at hand, you’ll see if a personal loan could be the right option for you.  

 

Calculate your monthly repayments with our personal loan calculator.

Personal loans have benefits and disadvantage like all consumer credit products, so by doing research on the topic you can figure out whether it is preferable over other ways of borrowing.

Benefits of unsecured personal loans

 

An unsecured personal loan means you don’t have to secure the loan against an existing asset, like your home. It has plenty of other benefits too, such as:

 

  • Fast access to money: After checking your eligibility, if you choose to proceed to the lender and your loan is approved, funds can be available within hours.  You can pay for your holiday, get your car, or consolidate your debts quickly.*

*Please remember that by consolidating existing borrowing, you may be extending the term of the debt and increasing the total amount you repay.

 

  • Flexible repayments: Choose how long you need to pay back the loan. Terms range from one year to up to seven years. Remember that the longer the term, the more interest you’ll pay in total.
  • Boost your credit score: Making monthly payments on time can help build your credit score. This will help with any potential future borrowing, whether another loan, credit card, or mortgage.
  • No collateral required: With an unsecured personal loan, you won’t lose your home or other assets if you miss your payments. However, defaulting on payments will affect your credit score.

 

Disadvantages of personal loans

 

  • Payback Commitment: As with any debt, when you take out a personal loan, you enter a short- or long-term commitment with your lender. Missed payments or default on your loan can damage your credit and risk the opportunity to qualify for credit in the future.
  • Additional Debt: You can use a personal loan for almost any reason, but it's important to have a plan to pay it back. Before you commit to a personal loan—either big or small—think about why you're borrowing the money and what it will be used for.
  • Credit Impact: While making all your personal loan payments on time every month can help your credit, missing payments or defaulting on your loan can damage your credit. When you apply, your lender will likely do a hard inquiry to check your credit, which can also impact your scores temporarily.
  • Higher Interest Rates: Although personal loans typically have competitive APRs based on your creditworthiness, they can have higher interest rates than secured loans. That's because most personal loans are unsecured, meaning there is no collateral (like your home) for a lender to seize if you fail to pay your loan in full.

 

What can I use a personal loan for?

  1. Debt Consolidation

    Combining multiple debts for easier management

    A debt consolidation loan can be used to pay off other unsecured debts. Examples of these debts might be personal loans, credit cards, store cards or an overdraft. You could include all or some of your existing borrowing. But remember, you may be extending the term of the debt and increasing the total amount you repay. Representative 29.7% APR

    Debt consolidation loans overview

  2. Car Purchase

    Buying a new car outright

    With the average new car in the UK around £40,000 and the average used car around £17,815 , many people choose a car loan to help with buying a car. Plus, a car loan helps you stay in control with no mileage limits and the freedom to modify the car to suit you.

    Car loans overview

  3. Home Improvement

    Helping you improve your home in small or big ways

    You can use a home improvement loan for all sorts of projects, from a new lick of paint to extra space for the family. With the average cost of a new bathroom around £7,000 and a new kitchen between £20,000 and £30,000 a home improvement loan could come in handy.

    Home improvement loans overview

  4. Holiday Loans

    Finance for a short break or a trip of a lifetime

    A personal holiday loan can help spread the cost of upcoming adventures.

    Holiday loans overview

  5. Wedding Loans

    Considering a wedding loan to help pay for your big day?

    Your big day can be an expensive one with the average UK wedding costing over £20,000 . A personal loan can help fund the whole event or provide a top-up.

    Wedding loans overview

  6. Business Loans

    Grow your business with the help of a loan

    Many businesses need extra cash every now and then. You could be looking to hire staff, expand or grow into new territories. Either way, many companies in the UK choose to borrow money through a business loan.

    Business loans overview

  7. Loans with Bad Credit

    Borrowing options with a bad credit history

    If you’ve had money problems or debt in the past, it may have left you with a poor credit rating, a bad credit loan is a personal loan product created specifically for people with poor credit. Many people take out loans for bad credit to consolidate debts, where other lenders may be unwilling to lend to them. Representative 29.7% APR

    Loans with bad credit overview

  8. Secured vs. Unsecured Loans

    What's the difference?

    Before you apply for a loan, it’s important to understand the difference between secured and unsecured loans. At Asda Money, you can compare unsecured loans from Aro's trusted panel of lenders. We don’t offer access to secured loans.

    Secured vs. Unsecured loans overview

How much can I borrow with a personal loan?

 

Aro work with a panel of lenders, to find loan options to suit your needs. You can choose the amount you want to borrow precisely or rounded values from £1,000, £2,000, £5,000, £10,000 and £15,000 right up to £25,000 – and select the length of time you want to pay it back. A quick eligibility check is carried out to find the most suitable deals for you without harming your credit rating. Then, you can compare loans and continue directly to the lender or take your time to consider your options.

 

 

How much do personal loans affect my credit rating?

 

A soft search will be performed as part of the initial eligibility check, which doesn’t have a negative effect on your credit score.

If you proceed with an offer from your search with Aro, the lender may complete a hard search once you have accepted your offer. Hard searches do appear on your credit file.

Why choose a Personal Loan through Asda?

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    The Asda advantage

    Known for putting value for money at the centre of everything we do

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    One simple form…

    Receive quotes from a trusted panel of lenders without harming your credit score

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    Asda service, Asda value, expert providers

    Loan options that work around you

How to find the best loan deal for you

To find the best loan deal for you, you’ll need to:

 

Decide how much you want to borrow

Work out how much you need to borrow. Only borrow what you need and don’t be tempted to borrow more. The more you borrow, the more you’ll need to pay back.

 

Decide on your loan term

By increasing the length of your loan, you’ll reduce your monthly payments. But with a longer loan, you’ll end up paying more in interest over the loan term.  

Check you can afford the repayments

Use our helpful loan calculator to look at things like loan term, amount borrowed and APR to see what you can potentially afford each month.

 

Check with loans you might be eligible for

With one simple eligibility check you’ll see all the available loans from across Aro's lender panel. This doesn’t impact your credit score.

 

Compare loans and apply

Compare the available loans from across Aro's panel of lenders and apply directly with your chosen lender or take your time to consider your options.

 

 

Secured vs Unsecured Loans

 

What's the difference?

The main difference between a secured and unsecured loan is that a secured loan is secured against an asset you own, like your home. At Asda Money, you can compare unsecured loans from our partner Aro's trusted panel of lenders. We don’t offer access to secured loans.

Secured vs. Unsecured loans overview

 

 

Personal loans with bad credit

If you have previously had money problems or debt, you may have a poor credit rating. You can still apply for a personal loan with bad credit, but fewer lenders may be willing to lend to you, and they may offer smaller loan amounts. You may also have to pay higher interest rates. Representative 29.7% APR 

To help build your credit history before taking out a loan, consider taking out a credit builder card as an alternative. You won’t be able to borrow as much, but making regular monthly payments will demonstrate responsible borrowing, which can boost your credit score.

You can search Aro's panel of lenders to find the most suitable loan for your requirements. Aro’s initial eligibility doesn’t affect your credit score, so you can quickly and simply see your options for personal loans.

Loan interest rates and fees

When you apply for a loan, you’ll see the annual percentage rate (APR) quoted for each loan as a percentage of the amount borrowed. This covers both the interest you’ll need to pay and any fees for taking out the loan.

With a personal loan, you’ll always end up paying back more than you borrowed as you pay interest on the loan amount. Your credit score can impact the interest rates offered to you by lenders. If you have a strong credit score, you will likely be offered lower interest rates.

Our loan calculator helps you understand how interest rates affect the overall cost of the loan and your monthly repayments.

 

 

 

 

Repayment Options

Aro's lender panel can offer personal loans from one to seven years. During the term of your loan, your monthly repayments will be fixed. This means you will know exactly how much you’ll need to pay back each month during the course of your loan.

If you want to end your loan early and pay back what you owe, you may be charged an early repayment charge (ERC). Once you decide to end your loan early, the loan company will provide a settlement figure that includes the amount outstanding, interest, and any fees. It’s up to you if you want to pay it back early. You can find information about your lender’s ERCs within the loan agreement which you should read before completing your loan application.

 

Car Finance Options

As well as personal loans, you have a range of other options for car finance including personal contract purchase (PCP) and hire purchase (HP). Our helpful guides will help you understand your options for car finance.

Top Personal Loans FAQs:

Why choose a Personal Loan?

Asda have partnered with Aro, who are a leading credit broker. This means customers can get access to a carefully selected lender panel who provide personal loans.

How does it work?

With one simple check, you can search Aro’s panel of selected lenders to see what loan options you have. Once you’ve been approved you will receive your funds, which in some instances could be on the same day.

How much can I borrow?

Lenders offer loans from £1,000 up to £25,000 with repayment periods ranging from 1 to 7 years.

Will applying affect my credit rating?

No. One of the best things about working with our partner Aro, is you get access to their panel of trusted lenders with no hard credit footprint left on your credit file. When you apply, a soft search is completed which doesn’t harm your credit score.

However, if you do proceed with an offer from your search with them, the lender will complete a hard search. This will show on your credit file.

What credit score do I need for a bank loan?

Strictly speaking, there is no minimum credit score for you to be approved for a personal loan. If you have a strong credit score, more lenders may be willing to lend to you with better interest rates on offer. If you have a lower credit score and have had problems borrowing in the past, you may find a smaller pool of lenders are willing to lend to you. You may even have to look for a specialist lender that offers loans for bad credit.

Can I get a loan with a CCJ?

If you have a county court judgement (CCJ) against your name, you may struggle to get a personal loan with mainstream lenders. However, you may find specialist lenders that are willing to lend to you.

Can I borrow money with bad credit?

If you have bad credit or have had money problems in the past, you may find that some lenders aren’t willing to lend to you. Those that are may only do so with higher interest rates. It’s worth looking at specialist lenders for bad credit loans. Or you can work on your credit score to improve it before applying for a loan.

Why won’t my bank give me a personal loan?

Lenders look at a variety of factors when deciding on whether or not to offer you a loan. They each have their own criteria which will take in your credit score, job, monthly income and more. If you have been rejected by a lender, you can always ask them why and hope they will give you some insight into their lending criteria.  They may direct you to one of the main three credit bureaus to find out more information

Can I borrow money with a poor credit score?

If you have a poor credit score or have had money problems in the past, you may find that some lenders aren’t willing to lend to you. Those that are may only do so with higher interest rates. It’s worth looking at specialist lenders for bad credit loans. Or you can work on your credit score to improve it before applying for a loan.

How to get the lowest rate for a personal loan?

The interest rates offered by lenders depend on a range of factors including how much you’re borrowing and the length of the loan. They will also look at your credit score. To help get a lower rate, you can look to improve your credit score by signing up to the electoral register, closing old accounts, checking for any errors on your report, and paying all your bills on time. You may also consider increasing the length of the loan or borrowing less.

Can I take out a loan if I already have one?

Yes, you can. When you apply for a new personal loan, lenders will look at your existing borrowing to see if you can afford the second loan. Many people choose to take out a new loan to consolidate existing borrowing – whether loans or credit cards – into one loan with a single monthly repayment.

If I already have bad credit, what could this mean for my application?

When you apply for a personal loan with a lender, this will show up on your credit file. Your credit score may take a very small hit in the short term once you take the loan out. But if you pay your monthly payments on time and in full, this can have a positive impact on your credit score.

View all personal loans FAQs

About our trusted provider, Aro

We’ve partnered with Aro to provide our customers the very best loan options from a panel of handpicked trusted lenders. Asda is in partnership with Aro. Both Asda Money and Aro are credit brokers, not lenders.

Following one simple eligibility check, your loan options with be displayed. It’s also a safe way to view your options without negatively affecting your credit rating.

Looking for more support? Managing money can be tough

That’s why our financial support hub has a wealth of information to help if you’re worried about your finances. From expert videos to money saving tips, you’ll find useful support for managing your money.

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ASDA Money is a trading name of Asda Financial Services Ltd who are an Introducer Appointed Representative of Aro who are authorised and regulated by the Financial Conduct Authority.  Aro acts as a credit broker and not as a lender.

Terms and conditions apply. UK residents aged 18 and over. If you take out a loan, Asda Money and Aro receive a commission payment from the lender. Different amounts of commission are received from different lenders and the amount will be either a fixed amount or a percentage of the amount you borrow and dependent on the lender you select. We will not charge you a fee for our services.

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