Loans for students: from £50 to £5,000
University life comes with costs that go well beyond tuition fees. Whether it’s a laptop that breaks mid-semester, a deposit on new accommodation, or an unexpected car repair, students regularly face expenses that their maintenance loan or part-time wages won’t stretch to cover.
New Horizons searches over 50 FCA-authorised lenders to find loans for students from £50 to £5,000, with no fees and no impact on your credit score. Our Soft Credit Match technology lets you check your eligibility in minutes, so you can see your options without any risk.
This page explains how student loans from personal lenders work (not government Student Finance), who’s eligible, what they cost, and what alternatives you should consider first. While students were once seen as unsuitable loan applicants, many lenders have changed their approach and now consider applications from students who can demonstrate a regular income.
How loans for students work at New Horizons
Personal loans for students work differently from government Student Finance. These are short-term loans repaid over 3 to 36 months, designed to cover one-off expenses rather than ongoing tuition or living costs.
Here’s how the process works:
- Complete our short online form with your personal and financial details
- We run a Soft Credit Match across our panel of over 50 FCA-authorised lenders
- If matched, you see your loan options in minutes, with no impact on your credit score
- Choose the offer that works for you, or walk away with no obligation
- If you accept an offer, the lender completes a full affordability check
- If approved, funds can be in your account within 15 minutes*
New Horizons is a credit broker, not a lender. We don’t make lending decisions ourselves. Instead, we match your profile with lenders on our panel who may be able to help, giving you access to multiple options through a single application.
The entire process takes around three minutes, and because we use a soft search for the initial check, other lenders won’t be able to see it on your credit file.
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Eligibility requirements for student loans
To check your eligibility through New Horizons, you’ll need to meet some basic requirements:
- Be at least 18 years old
- Be a UK resident
- Have a regular income (part-time work, freelance income, or regular benefit payments)
- Have a UK bank account
- Provide accurate personal and financial information
The key factor for students is having a regular income. Lenders need to see that you can afford the monthly repayments alongside your existing commitments. This could come from part-time employment, self-employment, or certain benefits.
Traditional high street banks often require full-time employment when assessing loan applications, which can make it difficult for students to access credit through their bank. However, many specialist lenders now take a broader view of affordability and are willing to consider students with part-time or variable income.
Maintenance loan payments alone are unlikely to be accepted as income by most lenders, as they’re designed to cover living costs rather than service additional debt. However, if you combine a maintenance loan with part-time earnings, this strengthens your application.
If you’ve had credit issues in the past, some lenders on our panel specialise in loans for bad credit. Having limited credit history (which is common for younger students) isn’t the same as having bad credit, and some lenders take this into account.
Understanding the costs
Borrowing money always comes at a cost, and it’s important to understand exactly what you’ll repay before accepting any offer.
New Horizons’ representative APR is 49.9%. This is significantly lower than many competitors in this space, some of whom charge representative rates of 79.5% to 91% or higher.
Here’s what that looks like in practice:
Representative example: Amount of credit: £1,200 for 18 months at £95.44 per month. Total amount repayable: £1,717.83. Interest: £517.83. Interest rate: 49% pa (fixed). Representative 49.9% APR.
The rate you’re offered will depend on your individual circumstances. Rates across our lender panel range from 9.3% APR to a maximum of 1,721% APR. The representative rate means at least 51% of successful applicants receive 49.9% APR or lower.
New Horizons never charges any fees to customers. Our service is completely free to use. We’re paid by lenders, not by you. There are no application fees, no arrangement fees, and no hidden costs from us.
For smaller amounts over shorter periods, you might want to compare this with a £500 loan or a £1,000 loan to see specific repayment examples.
Different Types of Loans for Students
Can students with limited credit history get a loan?
One of the biggest challenges students face when applying for credit is having little or no credit history. If you’ve never borrowed before, lenders don’t have much evidence of how you handle repayments.
This is different from having bad credit. A thin credit file simply means there isn’t enough data for lenders to assess your reliability. Some lenders view this more favourably than a history of missed payments or defaults.
Our panel of over 50 lenders includes those who specialise in working with applicants who have limited credit histories. By searching multiple lenders at once, you’re more likely to find one whose criteria suit your situation.
If you’d like to start building your credit score alongside your studies, there are some practical steps you can take. Registering on the electoral roll at your university address, keeping up with any phone contract payments, and using a student credit card responsibly all contribute to a stronger credit file. Our guide on how to improve your credit score covers this in more detail.
Why choose New Horizons for student loans?
The short-term lending industry has a troubled history, and students can be particularly vulnerable to high-cost or irresponsible lending. That’s why choosing the right broker matters.
New Horizons was established in 2017 with a simple principle: do the right thing for your customers. Here’s what that means in practice:
- We search over 50 FCA-authorised lenders through a single application
- Our Soft Credit Match won’t affect your credit score
- We never charge fees for our service
- Our representative APR of 49.9% is significantly lower than many competitors
- We hold a Feefo Gold Trusted Service rating from verified customer reviews
- We process over 7,510 loan applications per day
We also make a formal Customer Promise with three commitments we call “The Three Nevers”: we never sell your data, we never contact you to sell other products, and we never give consent to other companies to contact you.
In an industry where data selling and aggressive marketing are common, this matters. When you apply through New Horizons, your details stay with us.
When borrowing might not be the right choice
Being a responsible broker means being honest: a personal loan isn’t always the best option for students. Before applying, consider whether any of these alternatives could help instead.
University hardship funds are available at most institutions for students facing genuine financial difficulty. These are typically grants (not loans), meaning you won’t need to repay them. Contact your university’s student money advice team to find out what’s available.
Student overdrafts from your bank are often interest-free during your studies and for a period after graduation. If you haven’t already maximised your overdraft allowance, this is usually a cheaper option than a personal loan.
Bursaries and scholarships are sometimes available for specific circumstances. Check with your university, as some funds go unclaimed each year simply because students don’t know about them.
Payment plans with creditors can help if you owe money to a specific company. Many utility providers, landlords, and other businesses will agree to a payment arrangement if you contact them before the debt becomes overdue.
For free, impartial advice on managing money as a student, visit MoneyHelper or contact Citizens Advice. If you’re struggling with existing debts, StepChange offers free, confidential debt advice.
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If you do decide to borrow, there are no restrictions on how you use a personal loan from our lender panel. Common reasons students borrow include:
- Replacing a broken laptop or essential equipment
- Covering a rental deposit or moving costs
- Emergency car repairs
- Unexpected medical or dental expenses
- Essential home repairs in rented accommodation
- Bridging a gap between income payments
Whatever the reason, only borrow what you can comfortably repay alongside your existing commitments. If you’re looking for a smaller amount, our £100 loan and £200 loan pages explain how smaller borrowing works.
You’re under no obligation to accept any offer. Our Soft Credit Match shows you what’s available, and you decide whether to proceed. If nothing looks right, walk away at no cost.
How Soft Credit Match protects your credit score
Many students worry that applying for a loan will damage their credit score. With New Horizons, that doesn’t happen.
Our Soft Credit Match technology searches over 50 lenders without leaving any mark on your credit file. Other lenders can’t see this search, and it won’t affect your credit score in any way.
Here’s how the two-stage process works:
- Stage one (soft search): we match your profile against our lender panel. Only you can see this on your credit report. No footprint is left for other lenders to see.
- Stage two (hard search): this only happens if you choose to accept a specific loan offer. The lender will then complete a full credit check, which will appear on your credit file.
This means you can check your options risk-free. If you’ve been refused a loan elsewhere, multiple hard searches on your file could be part of the problem. Our soft search approach avoids adding to that.
Responsible borrowing for students
Borrowing money while studying carries specific risks. Your income may be lower and less predictable than it would be in full-time employment, which makes careful planning essential.
Before taking out any loan, ask yourself these questions:
- Can I afford the monthly repayments alongside my rent, bills, and living costs?
- Have I explored all free or lower-cost alternatives first?
- Do I have a clear plan for how I’ll repay the loan?
- What happens if my hours at work change or my income drops?
If you’re unsure whether borrowing is right for your situation, speak to your university’s student money advice service before applying. They offer free, confidential guidance and can help you explore all available options.
If you’re already dealing with debt, free help is available from MoneyHelper and National Debtline.
Warning: Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk.
Frequently asked questions about loans for students
Can students get a personal loan?
Yes, students can apply for personal loans if they have a regular income and meet basic eligibility requirements. You’ll need to be 18 or over, a UK resident, and have a UK bank account. Lenders assess your ability to repay based on your current income and outgoings, not your student status alone.
Do I need to be employed to get a loan as a student?
You don’t need full-time employment, but you do need to show a regular income. This could be from part-time work, freelancing, self-employment, or certain benefits. Maintenance loan payments alone are generally not enough, as lenders view these as funds allocated to living costs.
Will applying affect my credit score?
Checking your eligibility through New Horizons won’t affect your credit score. We use a soft search that’s invisible to other lenders. A hard credit check only happens if you choose to accept a specific loan offer from a lender on our panel.
How much can students borrow?
Through New Horizons, you can check eligibility for loans from £50 to £5,000. The amount you’re offered depends on your income, existing commitments, and the lender’s assessment of affordability. As a student with part-time income, you may be offered a smaller amount than someone in full-time employment.
How quickly will I receive the money?
If approved by a lender, funds can be sent within 15 minutes.* The time it takes to reach your account depends on your bank’s processing times. Our online application is available 24 hours a day, 7 days a week.
Is this the same as a government student loan?
No, these are different products. Government Student Finance (tuition fee loans and maintenance loans) is arranged through the Student Loans Company and repaid through your salary after graduation. Personal loans through New Horizons are repaid in monthly instalments over 3 to 36 months, starting shortly after you borrow.
What if I can’t keep up with repayments?
Contact your lender immediately if you’re struggling to make repayments. Many lenders will work with you to find a solution, such as adjusting your repayment plan. Ignoring the problem can lead to additional charges, interest, and a negative impact on your credit record. Free advice is available from StepChange and Citizens Advice.
Can I get a loan with no credit history?
Having no credit history doesn’t automatically disqualify you. Some lenders on our panel are willing to work with applicants who have limited credit files. Our Soft Credit Match searches multiple lenders at once, increasing your chances of finding one that suits your circumstances.
Are there any fees for using New Horizons?
New Horizons never charges any fees. Our service is completely free to use. We’re paid by lenders when a successful match is made, so there’s no cost to you whether you’re accepted, declined, or choose not to proceed.
Can I repay my loan early?
Most lenders allow early repayment, which can reduce the total interest you pay. Check the specific terms of any loan offer, as some lenders may charge early repayment fees. Details will be clearly stated in your loan agreement before you accept.
What’s the difference between a broker and a lender?
New Horizons is a broker, which means we search multiple lenders on your behalf rather than lending money directly. This gives you access to over 50 FCA-authorised lenders through one application, rather than applying to each lender individually. New Horizons Finance Ltd (Company No. 11757330, FCA reference: 834535) is an Appointed Representative of Flux Funding Limited (FRN 806333).
Should I use a loan to pay tuition fees?
Government tuition fee loans are almost always a better option for covering course costs. They don’t require repayment until you’re earning above the threshold (currently £25,000 for new borrowers), and any remaining balance is written off after a set period. A personal loan would need repaying immediately in monthly instalments, making it a much more expensive way to fund tuition.
Can I get a same day loan as a student?
If you meet the eligibility criteria and are matched with a lender, same day funding is possible. If approved, funds can be sent within 15 minutes.* The speed depends on when you apply and your bank’s processing times. Applying earlier in the day increases the likelihood of receiving funds the same day.
What happens to the loan when I graduate?
Your repayment schedule continues as agreed, regardless of your student status. A personal loan from our lender panel is separate from your government student loan. Monthly repayments are fixed when you accept the offer and continue until the balance is cleared, whether you’re studying or working.
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