Can under 18-19-20 olds get personal loans in the UK?
In the UK, individuals under the age of 18 generally cannot take out personal loans. Most lenders require borrowers to be at least 18 years old. This is because contracts entered into by minors are not legally binding in the same way as those entered into by adults.
Personal loans are legally binding contracts, and lenders need to ensure that the borrower can enter into a contract and be held responsible for repayment. Lenders typically require a credit history and stable income, which are not usually available to individuals under 18. The age requirement also ensures that borrowers have the maturity and financial responsibility to manage a loan.
Some banks offer savings accounts for those under 18, which can be a good way to start building a financial history and learn money management. Parents or guardians might consider taking out a loan on behalf of a younger person, though this would involve the adult assuming full responsibility for the loan.
In some cases, an adult might co-sign for a loan, but this is rare and usually not applicable to personal loans for individuals under 18. If you're looking for funding for education, student loans are available for individuals over 16 who are in higher education. These loans are managed by the Student Loans Company and have different criteria compared to personal loans.
Look for grants, scholarships, or bursaries for educational expenses. These do not require repayment and can be a good source of funding. Consider part-time work or internships to earn money and gain financial experience. Many young people work part-time jobs to save money for future needs.
As an alternative, you can also take out a personal loan. Your possible expenses:
Personal loan calculations for 1 year (example)
| Amount, $ | Rate, % | Accrued %, $ |
| 5,000 | 9.10% | 246 |
| 5,000 | 10.10% | 274 |
| 5,000 | 11.10% | 301 |
| 10,000 | 11.20% | 607 |
| 10,000 | 12.20% | 661 |
| 10,000 | 13.20% | 715 |
| 20,000 | 13.30% | 1,441 |
| 20,000 | 14.30% | 1,549 |
| 20,000 | 15.30% | 1,658 |
| 25,000 | 15.70% | 2,126 |
| 25,000 | 16.40% | 2,221 |
| 25,000 | 17.10% | 2,316 |
