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£20,000 loans

Personal loan for £20,000

Calculate your loan

Provided by the Bank of Ireland UK. AA Financial Services Limited is a credit broker and not a lender.

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    Interest from 6.1%

    Monthly repayments with interest rates from 6.1% on a £20,000 personal loan.

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    Lower rates for Members

    AA Members can borrow £20,000 with lower interest rates from 6.0%.

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    Moneyfacts excellent rating

    Moneyfacts excellent rating received July 2023, in conjunction with Bank of Ireland UK

    Moneyfacts Excellent Award for the AA Personal Loan

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An AA Member is a customer who has arranged Roadside Assistance or a higher level of breakdown cover directly with the AA – but not Basic Breakdown Cover, and not as part of a bank or vehicle manufacturer partnership program.

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Monthly repayments
£91.01
Illustrative APR (fixed)
17.9%
Total amount payable

£1,092.07

Check eligibility

The rate you’re offered will depend on your personal circumstances and may be higher than the illustrative APR.

Representative example

Representative 17.1% APR. Based on a loan of £20,000 over 5 years, with monthly repayments of £485.19 and total amount repayable of £29,111.40, which includes £9,111.40 interest at 17.1% fixed.

Important: The rate you're offered will depend on your personal circumstances – including your credit rating. The maximum APR you could receive is 28.1%. Your loan term will depend on the loan amount applied for. We currently offer loan term lengths of 1 to 7 years.

Do make sure you read our Statement of lender and borrower responsibilities, our Important Information and our Terms and Conditions before you apply.

Your £20,000 loan

A £20,000 personal loan is for large purchases like buying a car or improvements to your home. Only borrow if you’re sure you can meet the repayments.

A £20,000 personal loan is for large purchases like buying a car or improvements to your home. Only borrow if you’re sure you can meet the repayments.

FEATURES
  • Fixed monthly repayments
  • Members could get our rate of 6% for loans between £7,500 and £25,000
  • Instant decision in most cases
  • Make extra payments
  • Pay off your loan early – this may incur a charge of up to 58 days' interest
  • No arrangement or set-up fees

For a loan over £25,000, you'll need to meet the additional eligibility criteria.

 


Repayments on a £20,000 loan

The repayments on a £20,000 loan depend on the repayment period and your credit score or rating.

Repayment period

If you pay back your £20,000 loan over 5 years, it will cost more than over 3 years due to the additional interest over time. However, the individual monthly instalments are lower if you choose a 5 year term.

Credit score

Your credit score affects how much your £20,000 personal loan repayments will be. The score is worked out by credit reference agencies like Experian, Equifax and TransUnion.

If you have a low score due to missed payments or having lots of debt, your interest rate, and therefore the repayments, may be higher.

Who can apply for a personal loan for £20,000?

New customers are welcome to borrow £20,000 and AA Member rates start from 6.0%. The loan can be paid off over 1 to 7 years.

To find out what your £20,000 loan repayments might be, use the calculator above above to vary the repayment period.

Then if you want to apply for a £20,000 personal loan with AA Loans, select the eligibility check.

Why get a £20,000 loan through AA Loans?

A £20,000 loan from AA Loans costs less, and offers flexibility when it comes to repayments.

There are no set up or arrangement fees, and you can increase your monthly instalments or repay early with a lump sum.

Plus new customers get 12 months' free Basic Breakdown Cover.


Rate bands

The illustrative APR is the lowest rate offered on each loan tier. The rate you’re offered will depend on your personal circumstances and may be higher than the illustrative APR.

Loan amount £1,000–
£2,999 		 £3,000–
£4,999 		 £5,000–
£7,499 		 £7,500–
£9,999 		 £10,000–£14,999  £15,000–£19,999  £20,000–£25,000  £25,001–£30,000 £30,001–£40,000
Illustrative APR
(AA Member)		 15.7%
(15.6%)		 10.7%
(10.6%)		 7.3%
(7.2%)		 6.1%
(6.0%)		 6.1%
(6.0%)		 6.1%
(6.0%)		 6.1%
(6.0%)		 8.5%
(8.4%)		 8.5%
(8.4%)
Maximum APR 28.1% 24.9% 21.5% 20.3% 20.3% 20.3% 20.3% 13.2% 13.2%

Check eligibility

Free Basic Breakdown Cover

As a new AA Loans customer you can set up 12 months' free Basic Breakdown Cover.

Basic Breakdown Cover is for a single vehicle, and one breakdown more than 1/4 mile from your home address – further call-outs are available on a pay-for-use basis.

If you redeem the free Basic Breakdown Cover, you'll get a renewal invitation at the full price in 12 months' time. You'll then need to contact us to provide payment details, otherwise the cover will expire.

You can also upgrade from the free Basic Breakdown Cover to Roadside Assistance.

  • Upgrade to Roadside Assistance at a discounted price of £1 per month and get unlimited call-outs, plus access to Member benefits. Repeat call-outs for the same fault within 28 days won't be covered.
  • Add on National Recovery, At Home or Onward Travel to the Roadside Assistance upgrade at a discount on the normal price.

For the upgrade to Roadside Assistance and any add-on options, you'll get a renewal invitation at the full price in 12 months' time. If you provided recurring payment details, the cover will renew automatically unless you tell us otherwise. If you chose a single annual payment you'll have to contact us to pay for the renewal, otherwise the cover will expire.

The Basic Breakdown Cover or the discounted Roadside Assistance and add-ons become available when your loan application is accepted. You'll then need to call us to set up the cover.

The Basic Breakdown Cover isn't available if you already have AA breakdown cover, including through your bank or vehicle manufacturer. Here are all the terms and conditions.

Please also read the Basic Breakdown Cover Terms and Conditions Booklet.

How a £20,000 personal loan can help you

A £20,000 loan can pay for those big occasions, but make sure you can afford it before you apply. Reasons to borrow include:
  • Car loan – buy that new, used or classic vehicle with a £20,000 personal loan.
  • Home makeover loan – borrowing for home improvements can help towards a new kitchen, bathroom or conversion.
  • Wedding loan – a large loan can cover the cost of the venue, refreshments, dresses and other expenses.
  • Debt consolidation – you could use a debt consolidation loan of £20,000 to consolidate large amounts of debt, simplifying your repayments and getting interest back under control. In some cases, you could end up paying more interest over a longer term, so please seek independent debt advice to understand if this type of loan is right for you.
Additional eligibility criteria for loans over £25,000

Loans over £25,000 are not available if any one of the following statements applies to you:

  • Self-employed
  • Residential situation is 'living with parents'
  • Income is below £20,000 a year
  • You're applying for a debt consolidation loan
  • You're a tenant applying for a home improvement loan
  • You're an existing AA Loans customer applying for a top up, which would increase the total borrowing over £25,000.  

What is an AA loan?

These FAQs will help you understand our loan product. Please read them and all other information we provide carefully so you can decide if an AA Loan is right for you.

If you want further information or have any questions, get in touch. You can find our number in the documents we give you or contact us.

A personal loan is where you borrow an amount of money and then pay it back each month over a set period. These monthly repayments also include interest. So, you’ll end up paying back more than you borrowed.

We only offer unsecured loans, which means we won’t ask for any ‘security’ against your loan, like your home or car. So, you won't have to worry about losing that security if you have trouble making your loan repayments.

Before you apply, make sure a personal loan is right for you and your financial position.

Think about how much you need to borrow and if you can afford the repayments plus interest. Some other forms of borrowing may have lower interest rates – particularly if you want a small amount, like £1,000.

Late or missed repayments will have a negative impact on your credit rating. This might make it harder to get approved for credit in the future.

If you decide to go ahead with a personal loan, compare different loans to see which is most affordable for you.

You can use the money from a personal loan to spread the cost of more expensive items.

For example, if you want to make home improvements or buy a car but don’t have the money upfront. A loan gives you the lump sum you need, and you can pay it back each month over time.

You shouldn’t use a personal loan to pay for day-to-day living. Or as a deposit for other credit arrangements, like a mortgage.

You also shouldn't use it to repay gambling-related expenses. Or to invest in or trade in cryptocurrencies or other investments like stocks and shares.

With a debt consolidation loan, you can combine all your debts together into one loan. You borrow enough money to pay off all your current debts, so you only owe money to one lender.

This could help make things simpler and potentially reduce how much you pay each month. Because you'll only have one loan, one interest rate and one monthly repayment to manage. In some cases, you could end up paying more interest over a longer term, so please seek independent debt advice before applying for our loan, to make sure it’s the right choice for you.
 
Look at the current interest rates you're charged for your different debts. Then compare this to the interest rate you'd pay on an AA Loan. Remember to also consider how long you’d have the loan for. 

What should I know before applying for my loan?

To be eligible for an AA Loan, you must:

  •  be aged 21 or over
  • have no county court judgments (CCJs)
  • have been a UK resident for at least 3 years
  • have a regular income above £12,000 a year
  • have a UK-based bank or building society account that can pay Direct Debits

An Annual Percentage Rate (APR) is a way of showing how much it would cost to borrow money over a year. It includes the loan’s interest rate, how often interest is charged (daily, weekly, monthly or yearly) and any extra fees or costs. Looking at APRs can be a useful way of comparing different loans.

This is the specific APR (or lower) we reasonably expect at least 51% of people who successfully apply for a loan to get.

This uses the representative APR to show you what a typical loan would cost. It includes information like the monthly repayment amount, if the interest rate is fixed or variable and the total amount you’d pay.

This is the lowest possible rate on offer for the loan amount you’ve picked. Any quote based on this illustrative APR is just an example. The aim is to give you an idea of how much a loan would cost for that rate and term. Plus, show you what the monthly repayments would be for that particular rate.

The APR you’re offered might be different from the illustrative APR. We’ll give you a personalised rate based on:

  •  the information you provide
  • credit information held about you by credit reference agencies
  • the loan amount you borrow
  • the length of time you borrow for


In most cases, you’ll get an instant online decision on whether you’ve been accepted for a loan. If your application is accepted and you’re eligible to sign online, we’ll aim to get the money to your account within 2 working days.

Sometimes we’ll need to post the Loan Agreement to you. You’ll need to check all the details, sign the agreement and return it to us by post. We’ll then transfer the money to your account.

In some cases, we may need extra information or documents. If we do, we’ll be in touch with you by post within 5 days.


Yes. You have 14 days to cancel, starting from when you receive your loan.

If you do change your mind about taking out a loan, contact us during your 14-day cooling-off window to cancel.

If you change your mind about a top up loan, we won’t be able to bring back your previous loan.


If we turn down your application, it will be because of one or more of the following reasons:

  • Credit reference or fraud prevention agencies may have held information about you that has been interpreted as negative; or
  • You may have applied for another AA Loan in the last 30 days. Or applied for a loan with one of the Bank of Ireland’s other UK partners, like The Post Office; or
  • Your application may not have met one or more of the initial eligibility requirements. For example, having a regular income above £12,000 a year; and/or
  • Based on your household finances, we believe the repayments of the loan you applied for would have been too high. Missing loan repayments can have severe consequences on your ability to get future credit.

If you're not happy with the decision, you can contact us by phone. Or you can write to AA Loans, PO Box 248, Sheffield S98 1QF.

We can't guarantee that we’ll change our original decision. To support your appeal, you'll need to provide new, relevant information which wasn't given to us when you first applied.


I already have an AA Loan and need help with it

We’ll take your first repayment one month after you get your loan. You'll find the exact date on your welcome letter. If your repayment day is on a bank holiday or weekend, we’ll take the repayment on the next business day instead.

We’ll take your loan repayments each month by Direct Debit from the account you’ve chosen. You’ll find the repayment amount and the number of payments in your Loan Agreement.

Before signing the Loan Agreement, make sure you can make the monthly repayments. And that you'll have enough money in your account.

If you want to change the account you use for your repayments, contact us by phone.

Yes. To change your repayment date, contact us by phone and tell us which day of the month is best for you. You can only change your repayment date once each year.

If you miss a loan repayment, we’ll try to take the payment again within one week.

If you’re struggling to make repayments for any reason, we’re here to help. Contact us by phone to discuss your options.

If you're struggling to keep up with your loan repayments for any reason, we're here to help. Contact us by phone to discuss your options.

Or there are various organisations that can provide free, confidential and impartial advice. See the ‘Other Help and Guidance’ section for more information.

If you're already in touch with an organisation that's giving you financial advice, we can deal with them directly if you’d prefer. Please let us know.

 

No, an AA Loan doesn't come with a payment break option.

 

If you need to update your personal details, contact us by phone.

Yes, you can pay off all or part of your loan anytime. We call it an Early Settlement. Read more about Early Settlements here.

If you want an Early Settlement, you may be charged up to 58 days' interest.

To pay off your entire loan, you'll need to ask for an Early Settlement quote by contacting us by phone. Or write to AA Loans, PO Box 248, Sheffield S98 1QF.

To make a partial Early Settlement, call us to make a debit card payment. When you make this extra repayment, we’ll reduce the length of your Loan Agreement unless you ask us not to.

To get the outstanding balance of your loan, contact us by phone.

We can provide documentation in braille, large print or audio. If you need documentation in any of these formats, contact us by phone. Or write to AA Loans, PO Box 248, Sheffield S98 1QF.

No, you can't add extra money to an existing loan. If you’d like to borrow more money, you'll have to apply again for additional borrowing, known as a top up loan.

You can't apply for a top up loan that will bring your total borrowing with us over £25,000.

If you need more help, contact us by phone.

I’d like to speak to a real person

You can contact us by phone. We’re open 8am to 7pm, Monday to Friday and 8am to 2pm, Saturday. We’re closed Sundays and bank holidays.

Other help and guidance

We want to make sure managing your finances is as simple as possible. Our guides can help in everyday matters, or when things aren’t going quite as you planned.

Managing your money

Money worries

Bereavement

Redundancy

Caring for others

Divorce and separation

Or you can get in touch with us.

You can’t use an AA Loan to invest in or trade in cryptocurrencies or other high-risk investments.

This is because the value of cryptocurrencies or stocks and shares can rise or fall. Which means you could lose some, or all, of your money.

The market for cryptocurrencies is available 24/7. This access could negatively impact anyone struggling with a compulsion like gambling. To get free advice and support for gambling or trading compulsion, visit GamCare.

Are you worried about someone tricking or forcing you into taking out a loan?

With some fraud scams people may ask you to take out a loan for them or for an investment opportunity.

To protect yourself from this kind of fraud, you can find advice from the Government and UK Finance on the Take Five website.

Or if you feel like you’re being pressured, coerced or manipulated into taking out a loan, MoneyHelper has impartial advice for you.

Remember, only apply for a loan for your own use.

You're responsible for any loan taken out in your name, even if you give the money to another person.

Our Lending Standards Board commitment

Bank of Ireland UK follows The Standards of Lending Practice, which are monitored and enforced by the Lending Standards Board (LSB). You can find a copy of the Statement of Lender and Borrower responsibilities here.

General enquiries and support

0345 266 0124

We're open 8am to 7pm, Monday to Friday; 8am to 2pm, Saturday. We're closed Sundays and bank holidays.

Calls may be monitored for training and compliance purposes.

If you're calling about an existing loan, please have your 19-digit Loan Agreement Number to hand. It starts with 0007292 and is found on all emails and letters we've sent you.

Call about your loan

Bank of Ireland UK adheres to The Standards of Lending Practice which are monitored and enforced by the Lending Standards Board (LSB). A copy of the Statement of Lender and Borrower responsibilities is available here.

AA Financial Services Limited (AAFS) acts as a credit intermediary and introduces customers to Bank of Ireland (UK) plc as its exclusive loans provider.

AA Financial Services Limited is authorised and regulated by the Financial Conduct Authority. Registered Office: Fanum House, Basing View, Basingstoke, Hampshire RG21 4EA. Registered in England and Wales number 912211.

Bank of Ireland (UK) plc is authorised by the Prudential Regulation Authority, and regulated by the Prudential Regulation Authority and the Financial Conduct Authority. Bank of Ireland (UK) plc is incorporated in England and Wales number 7022885. Registered Office: Bow Bells House, 1 Bread Street, London EC4M 9BE. Bank of Ireland UK is a trading name of Bank of Ireland (UK) plc.