£20,000 Loans

With a £20,000 loan you could buy a new car or fund a home renovation project. Find out what loans you’re eligible for with Asda Money without impacting your credit score.

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A £20,000 loan gives you the money you need now and means you can spread out the cost of paying it back. Borrowing £20,000 can fund home improvements or buy a new car.

When you check your eligibility for a £20,000 loan with Asda Money, you get access to our trusted panel of UK lenders. They will offer you a range of loans that they believe meet your requirements and fit your personal circumstances. It doesn’t affect your credit score and you’ll get a list of potential loans online in minutes.

Consider that borrowing £20,000 is a significant financial commitment. The £20,000 loan repayments each month will be substantial.


How does a £20,000 loan work with Asda Money?

At Asda Money, we have access to a panel of carefully selected and trusted lenders. You simply complete an eligibility check to let us know your borrowing requirements. We search our panel of lenders for appropriate loans. You’ll then see a list of available £20,000 loans from specific lenders.

You can then compare all the available loans and make your decision on which works for you. You can then choose to continue and proceed straight to the lender to submit your application.

When can a £20,000 loan help?

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Often people take out a £20,000 personal loan to:

  • Make home improvements: Borrowing £20,000 can help pay for a home renovation project such as a single storey home extension.
  • Buy a car: A loan for £20,000 will help with buying a new car.

Types of loans

Unsecured personal loans (we offer access to these at Asda Money)
  • Usually a small, fixed rate loan for personal use
  • For amounts between £1,000 and £25,000
  • The amount you can borrow and the rate you see is based on things like your personal circumstances and credit score
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Secured personal loans also known as homeowner loans (we don’t offer access to this type of loan)
  • Typically sums over £15,000 and repaid over longer periods of 5-30 years
  • What you can borrow and the interest rate depends on your credit history, your assets and personal circumstances
  • When you borrow with a secured loan, you will need to secure it with an asset which is usually your home. It can be repossessed if you can’t keep up with your payments.
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How much will a £20,000 loan cost?

The cost of a £20,000 loan depends on the interest rate you’re offered by a lender.

When you see the available loan offers from our panel of lenders, each will have an interest rate or APR. If you have a better credit score, you will likely be offered a better interest rate by a lender. The lower the interest rate, the less you will pay over the term of your loan.

As £20,000 is a significant amount of money, it’s likely you will want to have a longer period of time to pay it back to keep your monthly repayments as low as possible. Be aware that the longer the term of the loan, the more interest you will pay. A £20,000 loan over 10 years will have lower monthly repayments than a £20,000 over 5 years, but will cost you more in total.

£20,000 loans with bad credit

If you’ve had debt problems or issues with money in the past, this can affect your credit score. You may find it difficult to get a loan for £20,000 with bad credit.

But you may be able to borrow a smaller amount or speak to a specialist bad credit lender. If you’re offered a £20,000 loan with bad credit, expect to pay higher interest rates.


Will a £20,000 loan affect my credit score?

Checking your eligibility for a £20,000 loan with Asda Money won’t affect your credit score. When you first check your eligibility with us, we submit a soft search. Once we’ve done this, you’ll see all your available loans from across our panel of lenders, with no impact on your credit file.

If you choose to take up the offer of one of the loans and apply with that lender, they could perform a hard search which affects your credit score.

Alternatives to a £20,000 loan

If you’re not eligible to borrow £20,000 or the monthly payments are too high for your financial situation, consider borrowing a lower amount. You can apply for loans of £10,000 and £5,000 with Asda Money.

To borrow smaller sums, a credit card is another option to consider.

Frequently asked questions

What is the monthly repayment on a £20,000 loan?

How much you pay each month on a £20,000 will depend on the loan agreement with the lender. As £20,000 is a significant sum to borrow, your repayments will be substantial each month. The exact amount you pay depends on your personal circumstances, the interest rate (APR), offered by the lender and the length of your loan. Paying back a £20,000 loan over 10 years will be cheaper each month than a 5-year £20,000 loan, but it will cost you more in interest over the term of the loan. 

Can I get a £20,000 loan without a guarantor?

You don’t need a guarantor to get a £20,000 loan. You will however require a good credit score and a history of responsible borrowing.

Can I get a £20,000 loan without a credit check?

No, when you check your eligibility for a £20,000 loan with one of the lenders from our panel, you will be subjected to a credit check.


Can I pay back my £20,000 loan early?

Depending on your agreement with the lender, you should be able to pay back your loan early. If you do, you will sometimes be charged an early repayment fee. You should always read the terms and conditions before completing your loan.

About our trusted provider, Aro

Asda is in partnership with Aro which is a trading name of Aro Finance Limited. Both Asda Money and Aro are credit brokers, not lenders. We offer our customers a different solution to borrowing money and finding a loan.

We work alongside Aro so we can provide our customers with their very best loan offer from a panel of handpicked trusted lenders.

With one simple eligibility check, our panel of lenders can provide you with a loan tailored to your needs. It’s also a safe way to find a loan without negatively affecting your credit rating.

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