Follow these three steps:

  1. Work out how much you need to borrow

  2. Choose how long you need to pay it back

  3. Compare interest rates to find the cheapest loan

You can use our loan calculator to see how much your peer to peer loan payments could be based on different amounts and loan terms.

Other things to check

When you have found the cheapest p2p loan that match your needs, check you meet all the chosen social lending platform's rules before you apply. Some of the rules may include:

  • Being over a set age e.g. 21 years old

  • Earning a minimum income e.g. over £12,000

  • Having a UK bank account

  • Having a strong credit record, with no defaults or missed payments

Here is how your credit record affects your loan application.

How are they different?

When you choose a peer to peer loan, rather than borrowing from a bank or building society you are borrowing from other people.

Social loans are arranged through a peer to peer lending platform, which matches up potential borrowers with savers who have deposited money.

  • You still only make one monthly repayment

  • You still have to pass a credit check

  • You are still charged interest in the same way as a standard personal loan

The loan amounts and borrowing terms available with peer to peer loans are the same as normal personal loans too, and the rates are very competitive.