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In the UK you can get hold of a loan for just about any purpose,
whether you need help for that luxurious holiday in the sun, have
got your eye on a new motor or simply need to help ends meet.
Loans are usually available for amounts between £500 and
£15,000, over a period ranging from 6 months to 10 years.
For a given lender, the interest rate charged will vary depending
on the amount borrowed and the period over which the loan is to
be repayed. Generally, the more you borrow, the lower the interest
rate offered. (Don't take this as an excuse to borrow more than
you need!)
The lender's interest rates can either be fixed or variable, although
the majority of personal loans offer a fixed rate. As a general
guide, it is advisable to compare the Annual Percentage Rate (APR)
of different lenders.
Personal loans can either be secured or unsecured. Secured personal
loans have your property set against them as security for the amount
borrowed, meaning that if you fail to repay your loan you may be
at risk of losing your property. Secured personal loans usually
offer a lower rate of interest compared to unsecured loans.
Some lenders offer flexible loans allowing you the option of over-payments
or under-payments. This could be of benefit, depending on your personal
circumstances, however, the rates of interest charged on these loans
can be uncompetitive.
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