Jargon Buster
Personal Loan
Personal loans are available at banks, building societies and other
leading financial institutions. A lump sum is borrowed in return for
making regular repayments usually via direct debit and paid monthly.
The repayment period is fixed and can be anything from 6 months up
to 25 years. The sum borrowed can be between £1,000 and £1,000,000+.
For lower loan amounts from £1,000 to £25,000 no security
is held against the debt, and the repayment period is short from 1
to 5 years. This type of personal loan is an unsecured
loan and is usually only available to people who have a good credit
rating.
For higher amounts from £3,000 to £1,000,000 security
is held against the debt, such as a house or car. The repayment
period is also longer for larger amounts from 3 to 25 years. This
type of personal loan is a secured loan
and is available to people who have a good credit history as well
as to people who have credit rating problems. See our Credit
Problems page.
Interest is charged on the loan and this can be fixed or variable.
A personal loan is usually fixed through out the repayment period
but can be variable for longer repayment periods; you will be informed
of this when you set up the loan. The exact rate you will be offered
depends on the amount you want to borrow, the repayment period and
your own personal circumstances.
A personal loan can be used for any purpose, as long as it's legal,
although there are some restrictions on using a personal loan for
business or investments.
Typical APR
The interest you pay will be quoted in terms of an APR, annual
percentage rate, and is the rate that you should use as a comparison.
When a rate is quoted it will usually be the typical APR, which
is the rate, offered to over 50% of successful applicants.
The exact rate you will be offered depends on the amount you want
to borrow, the repayment period and your own personal circumstances.
Interest is charged on a loan and this can be fixed or variable.
A personal loan is usually fixed through out the repayment period
but can be variable for longer repayment periods; you will be informed
of this when you set up the loan.
The lowest Typical APR is usually offered on unsecured loans; if
a higher amount or a longer repayment period is needed a secured
loan should be your preferred option.
Applying for a loan online
Applying for a loan online couldn't be easier just click on a 
button associated with the lender you like and you will be taken
to their web site. Fill in their simple online application form,
usually less then 10 minutes. The lender will then provide you with
one or more quotes which will be tailored to your personal requirements
and circumstances. The lender will provide you with a quote free
of charge and there is no obligation to proceed. If you like the
quote offered then follow the instructions given by the lender to
proceed with the loan.
To work out which lender to use visit our
Compare Quotes page for the latest online Typical APR rates.
|
