Jargon BusterPersonal
LoanPersonal 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 onlineApplying 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. If a particular
lender interests you then click on the 
button to view an independently researched review of that lender. If you would
like an instant quote click on the Get Quote button.
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