Your Guide to Personal Loans

By: TA Honey

Dazed by the sheer number of lenders offering a variety of personal loans in UK today? Well, here are a few pointers to help you make your way through the maze.

When seeking for a personal loan you should head for a bank, building society or finance provider. Whichever option you opt for, the loan amount will probably fall withing the limit of ï?? 500 to ï??15,000 for personal loans. The amount extended will depend on factors like your credit history, income etc. The options available for choosing a lending body are quite vast, you could pick a traditional bank (which would probable ask for a little higher interest rate) on the high street or you could go ahead and choose a borrowing or lending exchange which would offer you a slightly lower interest rate.

To assist you in choosing the best loan, a loan comparison portal might not be a bad option. Having to visit exclusive portals various lending bodies is a headache, moreover it is tedious and time consuming. There are many portals dedicated to the service of giving comparison rates and consolidated services. There are good chances that you may find other related services like debt insurance, debt consolidation etc. which might be helpful in securing your loan and opting smart way of handling debts.

The interest rate vary too. Most obviously you would like to pay the minimal interest. Rates may vary from 8%-20%. Subject to conditions like bad credit history, arrears, CCJs or defaults, the rate may shoot up. Also, interest rates are inversely proportional to the amount borrowed. Apart from the interest rates a borrower should take a close look at the installment terms and conditions, the period of time over which payment are spread, fixed and variable interest, and flexibility in the repayment mode, i.e. if the borrower is allowed to pay in lump sum for personal loans extended to them. Ultimately, a loan amount suited to your need and a reasonable interest rate with a flexible repayment plan with minimal service charges, if any, are the things a prudent borrower will match a deal against.

Personal Loans
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 

» More on Personal Loans