Top 12 Ethical Low-Credit Loan Lenders in the UK and How They Can Help You

When you have a low credit score, finding a fair and affordable loan can feel overwhelming, especially when so many lenders charge sky-high interest rates or hide fees in the small print. That’s where ethical lending comes in.

Unlike traditional payday loans or high-cost short-term credit providers, ethical lenders focus on transparency and fair pricing. Their goal is to support people who may be financially vulnerable.

In this guide, we’ve rounded up 15 of the top ethical low-credit loan lenders in the UK, including Salad, a standout choice for key workers and low-income earners. If you’re dealing with unexpected expenses or trying to get back on your feet, these lenders may be able to help.

They provide flexible terms and financial wellness tools, and they’re committed to doing the right thing. Read on to find out which option might work best for your situation, and how to borrow smarter and safer.

What to Look for in an Ethical Loan Provider

When you’re choosing an ethical loan provider, you’ll need to look for clear and honest information. A good lender will show the total cost upfront, including interest rates and any fees, with no hidden charges. They’ll also check if you can afford the loan, not just your credit score.

Ethical lenders are usually regulated by the Financial Conduct Authority (FCA) and treat borrowers fairly. It’s also a plus if they offer flexible repayments or tools to help you manage your money better. Most importantly, they should focus on helping you, not trapping you in a cycle of debt.

Ethical Low-Credit Loan Lenders to Consider in the UK

1. Salad

If you’re a key worker or a low-income employee in the UK, finding a fair and affordable loan can be challenging, especially if your credit score is less than ideal. That’s where Salad comes in.

Salad is an ethical, UK-based lender that focuses on helping people often overlooked by traditional lenders, including NHS staff, public sector workers, and those on lower wages.

They’re not just about lending money; they’re on a mission to promote financial inclusion. They believe that hard-working people deserve access to affordable credit, without being penalised by poor credit history or hidden fees.

What Salad Offers

Salad provides personal loans between £300 and £2,000, with repayment periods of 6 to 24 months. The Representative APR is 79.5%, based on a fixed annual interest rate of 59.97%.

This is much lower than typical payday loans or high-cost short-term credit options. Plus, Salad keeps things simple; there are no hidden fees, and everything is clearly explained upfront.

They use open banking to assess affordability, which means they review your real-time income and spending instead of relying on your credit score alone. Since they use this technology during the application process, applying won’t affect your credit rating as there’s no hard credit check.

Who They Help

Salad specifically supports key workers and low-income earners, such as people working in healthcare, social care, education, and other public-facing roles. Their goal is to provide these individuals with access to safe and fair credit when it’s needed most.

More Than Just a Loan

Salad is determined to help you build a healthier relationship with money. They’re genuinely committed to doing good, and they also secured the first Open Banking license given to an independent lender in the UK.

Why Choose Salad?

• Transparent, fixed pricing – no hidden charges
• Fair, affordability-based checks using Open Banking
• Focused on key workers and lower-income earners
• Applying won’t affect your credit score
• Authorised and Regulated by the FCA

2. Fund Ourselves

Fund Ourselves is an FCA‑authorised peer‑to‑peer lender in the UK that connects borrowers (and investors) directly. You can borrow £100-£1,500 and repay over 4 to 6 months, with optional extensions up to 12 months.

The product features no application fees, no early‑repayment charges, and borrowers can expect funds within one hour of approval. The representative APR is 1,310.4%, reflecting short-term lending costs (e.g., borrowing £300 for ~106 days at 176% p.a.).

Fund Ourselves prides itself on clear terms, flexible repayment dates, and supporting borrowers with less-than-perfect credit. If you make repayments early, it’ll reduce your interest automatically.

3. Lending Stream

Lending Stream is a UK-based, FCA-authorised, direct lender offering short‑term loans to individuals, including those with poor credit. New customers can borrow between £50-£800, while returning customers may access up to £1,500, repayable over 6 or 12 months.

They use an initial soft credit check followed by a hard check upon approval, and they’ll assess affordability, not just credit rating. The representative APR is 1,271%, based on £300 over 6 months at a fixed 292% p.a., resulting in total repayments of £578.36. Funds are typically deposited within 90 seconds of approval.

There are no early repayment fees, and late payment carries a maximum £12 charge. With a 4.8 Trustpilot rating, it’s praised for speed and clarity, making it a transparent, somewhat though high-cost, option for urgent borrowing.

4. CashASAP

CashASAP is a UK-based, FCA-authorised lender offering convenient short-term payday loans (£200-£300) and instalment loans (£200-£750) for new customers, with returning borrowers able to access up to £750.

You can choose repayment over 1-35 days for payday loans or 3-6 months for instalment credit. The representative APR can reach 1,266%, reflecting high-interest short-term lending. For example, borrowing £200 over 6 months can cost £355.99. Loans are processed quickly, often within minutes, and there are no hidden fees or early repayment penalties.

CashASAP uses affordability checks and continuous payment authority, with a strong 4.6 Trustpilot rating, making it a transparent yet costly option for urgent credit needs.

5. Loans2Go

Loans 2 Go offers unsecured personal loans from £250 up to £2,000, repayable over 18 to 24 months. Their Representative APR is 679%, with a flat interest rate of 168% p.a. (fixed). For example, borrowing £550 over 18 months means repaying around £1,936 in total.

Loans 2 Go uses soft eligibility checks that won’t affect your credit score, but performs affordability assessments and a hard credit check before final approval. No setup or early repayment fees apply, and while there are no formal late-payment penalties, missing payments could result in escalation costs.

They are also FCA-authorised, and customer reviews praise their quick decisions and ease of use. However, some warn of high costs for those struggling to keep up.

6. CashFloat

Cashfloat is a UK-based, FCA-authorised direct lender offering unsecured short-term loans between £250 and £2,500, with repayment periods spanning 3 to 9 months. Their representative APR is 611.74%, with rates ranging from 295.58% to 1,294%, based on the loan amount and term.

Cashfloat prioritises affordability over credit score, making them accessible to those with poor credit, and they use a soft credit check for initial eligibility. Loans are typically funded within an hour after approval, with transparent terms and free early repayment options. Their “Easy Start” feature and cashback scheme support responsible borrowing.

7. Evlo

Evlo (formerly Everyday Loans) is an FCA-authorised UK lender specialising in unsecured personal loans for borrowers with subprime credit . You can borrow £1,000-£15,000, with repayment terms from 18 to 60 months, and no guarantor required.

They start with a soft credit check for eligibility, then conduct a hard check if you proceed. Their representative APRs range from around 30% up to nearly 300%, with a common example: £3,000 over 24 months at 99.9% APR.

Evlo supports financial inclusion, with a strong in-branch presence and over 300,000 customers served since 2006. It also received excellent customer ratings (4.9/5 on Feefo).

8. Drafty

Drafty is an FCA‑authorised UK lender offering both a flexible line of credit (£50-£3,000) and fixed personal loans (£1,000-£3,000) with repayment terms of 12 to 24 months.

They use a soft credit check for eligibility, and then a hard check before final approval. A fixed loan has a Representative APR of 79.9%, while the variable‑rate credit line APR is 96.2%.

With Drafty, funds are typically transferred within 90 seconds of approval. There are no early repayment fees, and interest is charged only on the amount used. They’re also highly rated on Trustpilot with fast, flexible borrowing options.

9. Creditspring

Creditspring is a UK-based, FCA-authorised lender offering a subscription credit model: members pay a flat monthly fee (from £7-£26) and access two interest-free loans per year, typically repaid over six months.

Instead of interest, the membership ensures no hidden charges, capped costs, and predictable repayments. A soft check is used initially, and once joined, a hard credit check is performed. The membership fees vary by tier, with representative APRs from 48.1% to 88.8%.

Creditspring reports on-time payments to credit agencies, helping members build credit. It’s praised on Trustpilot for its clear pricing and user-friendly service.

10. 118 118 Money

118 118 Money offers unsecured personal loans ranging from £1,000 to £5,000, repayable over 12-36 months. They focus on simplicity and speed: users can check their eligibility without affecting their credit score, and funds often arrive within 15 minutes to two hours after approval.

The representative APR is 49.9%, based on a £2,000 loan over two years at a fixed 41.2% interest rate. No guarantor is required, and there are no setup fees, though late payments incur a £12 charge and early repayment fees may apply.

118 118 Money is FCA-regulated with a 4.8 Trustpilot rating, and it offers a transparent, straightforward borrowing option for people with less-than-perfect credit.

11. Finio Loans

Finio Loans (formerly Likely Loans) is another UK direct lender offering unsecured personal loans between £500 and £5,000, with repayment terms ranging from 12 to 36 months. They use a soft credit check for eligibility, meaning your credit score isn’t impacted during the initial application.

Additionally, their representative APR starts at 39.9%, rising up to 69.9% depending on your circumstances. Once approved, funds can often reach your bank the same day, and there’s no early repayment penalty.

Finio is FCA-regulated and holds an “Excellent” rating on Trustpilot, making it a transparent option for borrowers with imperfect credit.

12. Bamboo Loans

Bamboo Loans is a UK-based, FCA-regulated direct lender offering unsecured personal loans from £2,000 to £15,000, repayable over 12 to 60 months. They use a soft credit check initially, followed by a hard check if you proceed, allowing those with fair credit to apply.

Their representative APR ranges between 34.9% and 69.9%, typically around 49.7% for a £2,500 loan over two years. They don’t charge upfront fees and allow early repayment without penalty, although you may still owe a few extra days’ interest.

Overall, Bamboo is known for its transparent, fast service. Same-day funding is common with them, and they’ve got a high Trustpilot rating (4.9/5 from over 31,000 reviews).

Borrowing Responsibly with the Right Lender

Finding a fair loan when you have low credit isn’t always easy. However, many ethical lenders are helping to change the landscape by offering transparent terms, reasonable rates, and support for borrowers who need it most.

Whether you’re a key worker, on a low income, or just trying to get back on track, the lenders in this list offer a more responsible alternative to high-cost, high-risk borrowing.

That said, remember to always check the total cost of borrowing, compare your options carefully, and only borrow what you can afford to repay.