Compare 1000 Loan Rates

If you are looking for a 1000 loans or a £10,000 loan the application process with most lenders will be roughly the same.

When taking out any kind of loan, you should shop around to find the best deal available. Like all financial products, loans vary greatly between plans and lenders. The different terms, conditions, and interest rates mean that there’s no one right loan for everyone; it depends on your specific needs.

You can use the calculator on this site to compare over 200 different loans from over 20 different lenders to help you see your best choice.

How to get a £1,000 personal loan

If you apply for a £1000 loan, it may be an unsecured loan. These loans typically allow you to borrow up to £25,000 over a variable time period. Generally speaking, the larger the amount you wish to borrow, the lower the rate of interest. However, this does not mean you should take out a larger loan you cannot afford to service or repay.

Lenders will advertise their personal loans with a Representative APR; however, this is not the amount you are guaranteed to get from taking out a loan with them. Your actual interest rate will be dependent on numerous factors, such as how much you earn and your credit history. They will also take this into consideration when they evaluate how much they are actually willing to lend you.

How much do £1000 loans cost?

This will depend on your circumstances, but assuming you have an excellent credit score, then you should qualify for a market-leading deal with the market personal loan rate.

Loan Repayment Example

Loan Repayment Example

Let’s work through the example of a loan of £1,000 taken out over 5 years (60 months) with an annual APR of 12.5%. We’ll determine the monthly repayments, including both capital and interest.

Loan Details

  • Loan amount: £1,000
  • Annual Percentage Rate (APR): 12.5%
  • Loan term: 5 years (60 months)

Steps to Calculate Monthly Repayments

  1. Convert the annual interest rate to a monthly interest rate:

    \( r = \frac{12.5\%}{12} = \frac{0.125}{12} \approx 0.01042 \)

  2. Determine the number of monthly payments:

    \( n = 5 \times 12 = 60 \)

  3. Plug the values into the formula:

    \( M = P \frac{r (1 + r)^n}{(1 + r)^n – 1} \)

    Where:

    • \( M \) is the monthly repayment
    • \( P \) is the loan principal (initial amount)
    • \( r \) is the monthly interest rate (annual rate divided by 12)
    • \( n \) is the number of payments (loan term in months)
  4. Calculate step-by-step:
    1. \( (1 + r)^n = (1 + 0.01042)^{60} \approx 1.81940 \)
    2. \( r (1 + r)^n = 0.01042 \times 1.81940 \approx 0.01895 \)
    3. \( (1 + r)^n – 1 = 1.81940 – 1 = 0.81940 \)
    4. \( M = 1000 \times \frac{0.01895}{0.81940} \approx 1000 \times 0.02311 \approx 23.11 \)

Monthly Repayment

The monthly repayment is approximately £23.11.

Summary

If you take out a loan of £1,000 over 5 years with an APR of 12.5%, your monthly repayment would be approximately £23.11. This amount includes both the repayment of the loan principal and the interest. Over the 5-year period, you will make a total of 60 payments.

Calculations are based on a fixed interest rate over the term; no repayments are missed.

Use our loan calculator to get a current bespoke quote.

How to get a £1,000 Guarantor loan

You may also be able to borrow this amount as a guarantor loan if you feel your credit score is not good enough to get a personal loan. With this type of loan, someone with a better credit history agrees to be a guarantor in the loan, meaning they share responsibility for it. This means if you failed to repay, the lender would ask the guarantor to make it.

Guarantor loans tend to be more expensive than personal loans overall. The lender still faces added risk despite the added security of having a guarantor.

Considerations before taking out a £1000 loan

Before you take out a loan, you should make sure it really is the best option for you, consider alternatives such as If you have any savings, it might be beneficial to use these instead, as the interest you pay on a loan may be higher than any interest you earn from your savings.

However, depending on your personal circumstances, some options are likely to be more suitable for your needs than others. Before committing to a loan, we strongly recommend comparing the market for your loan options.

We provide a loan calculator on this site. For secured loans, business loans, and bridging loans, you should speak to a qualified loan broker who can evaluate your situation and provide you with unbiased, expert advice to make the right decision.