Loan rates rising
Research from Moneyfacts.co.uk found that the cheapest rate for a £5,000 loan is presently 7.6 per cent from Moneyback Bank.
A year ago, the same lender was offering a rate of 6.3 per cent, the firm noted.
The company said that with financial conditions unlikely to improve in the near future, rates for loans could rise further.
"At a time when every penny counts, if you need a personal loan, you need to make sure that you shop around as it is highly unlikely your bank will offer the best deal," it stated.
The difference between the cheapest and most expensive loans currently available is approximately £25.55 a month, it added.
Earlier this year, David Kuo, head of personal finance at Fool.co.uk, urged those considering taking out a loan to seek "flexibility" and to avoid secured products.
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Mortgages - Your home may be repossessed if you do not keep up repayments on your mortgage.
Loans - Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
Motor - 1The saving shown is based on the cheapest quote returned by the BeatThatQuote.com search engine compared to the renewal price provided by the customer.