How our car loans work

  • Borrow between £1,000 and £50,000 over 1-7 years.
  • For completed applications the money will be in your account the same day; 9am-8.30pm, or before 9am the next working day.
  • It's easy to keep track of your loan using Internet Banking or the Mobile Banking app. You can also phone us or visit us in branch.
  • The amount you can borrow and rate offered will depend on your personal circumstances.

What are the benefits?

With a car loan you could benefit from:

  • Loans between £1,000 and £50,000 over 1-7 years.
  • Deciding who you buy your car from; a dealer or private seller.
  • Modifying or changing your car anytime.
  • A loan term with payments to suit your budget.
  • 6.7% APR Representative on loans between £7,500 - £25,000 over 1-5 years. 

Other amounts and terms are available at different rates.


Apply for a car loan

To apply for a car loan, you need to:

  • be aged 18 or older
  • be a UK resident (excluding Channel Islands and the Isle of Man)
  • have held a Lloyds Bank current account for at least 1 month
  • be in paid employment or have a regular income and are not a full-time student
  • have a good credit score, with no history of bad credit, such as County Court Judgements (CCJs) or bankruptcy.

Apply now

Representative example

You could borrow £10,000 over 48 months with 48 monthly repayments of £237.16. Total amount repayable will be £11,383.68 Representative 6.7% APR, annual interest rate (fixed) 6.5%.

This representative APR applies to loans of £7,500 to £25,000 over 1 to 5 years. Other terms and loan amounts are available at different rates. The maximum APR is 29.9% APR.

Things to consider

Selecting your car - are you thinking about a new, or a used car? Read helpful tips in our guides for car buyers’.

Other costs - to keep a car running, you'll need to account for things like insurance, servicing, MOTs, fuel and breakdown cover.

Other borrowing options - Hire Purchase (HP) and Personal Contract Purchase (PCP) are two other options you might like to consider.

Loan calculator

Use our handy loan calculator to work out how much your loan payments could be. It will give an indication of monthly payments and APR.

Find out your personalised rate by logging on to Internet Banking.


Offering you flexibility

Once your loan is agreed, the money could be in your account the same day, 9am-8.30pm, or before 9am the next day.

Repayment holidays -
you can apply for up to two repayment holidays of 1 month in a rolling 12-month period, if approved.

Make extra payments with no extra charge.

Pay off your loan early if you want. Just be aware, we could charge up to 58 days' interest for early settlement, but you are still likely to save on interest repayment overall.

Get a quote in minutes

Log on to Internet Banking to get a personalised quote.

  • Tell us how much you want to borrow and over how long to get a quote in minutes.
  • This won't affect your credit score.
  • If you go on to apply, you’ll get an instant loan decision online.
Log on to get a quote

Frequently asked questions

  • A car loan is a personal loan that you can use to buy a car.

    Before applying for a car loan, we’d recommend finding the car you’d like to buy first. Then you'll know how much to borrow.

    Once you’ve found your car, you can use our loan calculator to get an idea of what your repayments may look like. You can also get a personalised quote by logging on to Internet Banking. Usually, we'll tell you how much you could borrow and if you're likely to be approved, before you apply.

    If your loan is approved, you could have the money in your account the same day. You can then pay the car dealership or private seller in full and pay back the loan to us as per the agreed terms.

  • When buying a car with the help of Lloyds Bank, you have four options to pick from. Such as a personal loan, Personal Contract Purchase (PCP) Hire Purchase (HP), or Car Lease.

    Compare your options or learn more about the ways you can pay for a car.

  • A car loan is a personal loan, so you don’t have to use it to buy a car. Once the money is in your account, you can use it for just about anything, although there are some restrictions. We can’t issue loans intended for:

    • Any illegal activity. 
    • Speculative purchases such as, gambling, investments and share purchases. 
    • Business-related purposes. 
    • The purchase or lease of land or property, either in full or in part. This includes deposits.
    • Timeshares/holiday clubs.

    These limits apply whether you want to borrow money for yourself, or to support someone else. For example, you can't take out a loan and give the money to a family member as a deposit for a house.

  • Getting a personalised quote with us does not use a credit check or affect your credit score. 

    When you apply for a car loan, we will perform a credit check. This is to help us understand how likely you are to pay the loan back. Learn more about how credit checks work.

Other ways to apply

Apply over the phone – call us on 0330 123 3890.

Speak to an adviser 8am-8pm Monday to Friday and 9am-6pm Saturday and Sunday. Closed Bank Holidays.

Apply in branch  our local branch will be happy to help you apply for a loan.

Find your nearest branch


How much we lend and the rate available are subject to our assessment of your circumstances. You must be 18 years of age or over and a UK resident. You must have had a Lloyds Bank current account for at least one month.