Guide to Personal Loans
Personal loans are offered by lending institutions such as banks and
building societies and are so called because the lender requires no security
for the debt. Personal loans are available for a range of different amounts and repayment
terms. Depending on the amount and purpose of the loan, you will be able to
choose from a range of repayment periods. Larger loans such as those over
£10,000 can usually be taken over longer terms i.e. 7 to 10 years. The
minimum loan amount is typically £1,000 although some lenders do offer £500
and upwards. The maximum amount you can lend is £25,000, although this will
vary between lenders and products.
The amount borrowed is subject to an interest charge, and the interest rate
applied is known as the Annual Percentage Rate (APR). Generally, it is
advisable to compare the APRs of different products as a means of
determining how competitive they really are.
Getting accepted for a personal loan can sometimes prove difficult if you’ve
got bad credit, have changed addresses frequently, have no previous credit
history or are self-employed. There are lenders who can help those who need
'bad credit' loans and those who have difficult personal circumstances. The
APR is likely to be higher than that offered by a standard personal loan
provider, but the chances of getting accepted are far greater.
Why not make an application