Cheap personal loans imply that the borrower gets loan at lower interest rate and cost of availing is also low. A low rate of interest is best ensured for the UK people if they provide home or any valued property as collateral to the lender. If the borrower has good credit history then the lender even reduces interest rate on personal loans. Also if repaying ability of the borrower is excellent then the lender is willing to lower further the interest rate. Another factor that leads to lowering interest rate is loan amount. If you borrow an amount that is lower than value of your home or the property placed as collateral, the lender feels more secured and reduces rate to win you as a customer.
Unsecured personal loans also are source of cheap loans in the UK. Such a loan is approved by online lenders at competitive rate of interest without taking security from the borrower. But you should be having good credit history and repaying ability to get unsecured loans at cheap rate of interest.
If personal loans are availed form online lenders, even a bad credit borrower gets the loan at competitive rate of interest. So for bad credit borrowers cheap personal loans in the UK clearly means that they get the loan at lower rate as compared to banks or financial companies.
Online lenders do not charge any fees on personal loans processing and provide all relevant information cost free. This way also we can say that personal loans come cheap for the UK people.