How to get a loan

Before you apply, checking a couple of things, such as your credit score and if you are eligible, could help you get approved for a personal loan.

Loan eligibility and affordability

One of the first things to check when applying for a loan is to make sure you are eligible to apply for one. This is also a good time to look at how much you need to borrow and how much you can repay each month.

Making sure you are eligible for a loan

To apply for a loan with us, you must:

  • be a UK resident (excluding the Channel Islands and the Isle of Man)
  • be aged 18 or older
  • have held a Lloyds Bank current account for at least one month. 

What you can borrow for?

You can use a personal loan for almost any purpose such as buying a car or to help manage your existing borrowings.

However, we will not offer a loan for:

  • Speculative purchases, for example: gambling, investments and share purchases.
  • Any illegal purposes.
  • Business related purposes.
  • Purchase/Lease of land or property, either full or part purchase (including deposit).
  • Timeshares/Holiday Clubs.

Log on to Internet Banking for a personalised quote. In most cases, we will tell you how much you can borrow and if you are likely to be approved before you apply. This will not impact your credit score.

Get a personalised loan quote

Setting your borrowing limits

Other things to think about are how much you want to borrow, how much you can repay each month and how long you want to take to pay the loan back in full.

How much can you borrow

We offer personal loans of between £1,000 and £50,000.

The amount you can borrow and the interest rate you receive is based on your personal circumstances. 

How long you can take to repay the loan

You can take a Lloyds Bank Personal Loan for between 1 and 7 years. Just bear in mind the longer you borrow, the more interest you will pay overall.

To pay less interest overall, choose the shortest term you can afford on the lowest rate you can find.

You can pay your loan off early if you have some money to spare. Keep in mind, we may charge up to 58 days' interest for early settlement.

What we look at when deciding to offer loans

We typically look at several factors when deciding if, and how, we will offer you a loan. The main points we consider are your income, your employment status and your credit score.

Income

Your loan application is more likely to be approved if you have a steady income. This is because as a responsible lender, we want to see that you can cover your monthly loan repayments.

Employment

If you are in a full-time, permanent job, you are more likely to receive a loan than if you are unemployed, or in part-time or short-term employment.

Credit score

A good credit rating shows us that you have a track record of repaying loans on time. We see you as a lower risk and so are more likely to offer a loan; sometimes at better rates.

Learn more about credit scores

How you can improve your credit score

We will make a decision about your eligibility based partially on information held about you by credit reference agencies, such as Experian, TransUnion and Equifax.

This credit information helps to build a picture of you and your financial history. While it is not always possible to find a better paid job and increase your income, you can improve your credit rating.

Here are six ways you can improve your credit score: 

  1. Make sure your name is on the electoral roll. This builds credibility with lenders.
  2. Review your debt. Consider how much you owe across all your borrowings and if you can consolidate or reduce your debt. If you need help, there is free and impartial advice widely available.
  3. Reduce your plastic. Minimise the number of credit and store cards you use.
  4. Check your credit files. It is worth seeing if there are any mistakes or fraudulent activity recorded against your name. Report any errors and get them corrected. Credit reference agencies (CRA) Experian, TransUnion and Equifax are obligated to give you a copy of your credit report, free of charge. Each may hold different information on you, so it is worth contacting all three.
  5. Keep on top of your paperwork. Do not fall behind when paying bills.
  6. Limit your credit applications. If you apply for a lot of credit in a short space of time, lenders might conclude you are struggling financially. Look for quotes from lenders that do ‘soft’ searches which are not recorded by CRAs and will not impact on your credit score. Learn more about improving your credit score.

A personal loan is just one type of finance and may not be right for your circumstances. Read our guide to borrowing options to find out more.

Ready to apply?

Log on to Internet Banking to get a personalised quote. It takes around one minute, and in most cases we will tell you how much you can borrow and if you are likely to be approved before you apply. This will not impact your credit score.

Apply for a loan

Loan calculator

See what your repayments on a Lloyds Bank loan could be

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Making sure you get a fair deal

We want you to find a product that's right for your circumstances, which is why we adhere to the Standards of Lending Practice, which are monitored and enforced by the Lending Standards Board.

To find out more you can read the statement of responsibilities, which details what's expected of us, the lender and you the borrower.