If you have been thinking about getting a loan for any reason you might be wondering if Lloyds loans are right for you.
Lloyds Personal Loans allow you to borrow from £1,000 to £25,000 years over a variable time period.
With personal or ‘unsecured loans’ generally speaking the larger amount you wish to borrow the lower the rate of interest, however this does not mean you should take out a larger loan you cannot afford to service or repay. The actual amount a lender would be willing to let you borrow as well as the APR they gave would be dependent on an assessment of your credit score and financial circumstances.
Personal loans, like most financial products vary hugely between plans and lenders, therefore it is wise to shop around before committing to any deal, to find the cheapest option for you, remember that there are alternatives to Lloyds loans. The best option for one person is not always the best option for everyone else.
You can use the calculator on this website to compare over 200 different loans from over 20 different providers, to help you see what the different options for you are.
If you want to borrow a larger amount of money and you own your own home or other property, a homeowner loan might be an option for you. As you have to place an asset (such as your home or other property) as security on the loan banks are usually willing to lend more, commonly up to £250,000. The actual amount you can borrow is dependent on the value of your home and how much equity you have, if you have a mortgage.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. If you are at all unsure of the suitability of a particular product for your circumstances you should seek independent financial advice.
Before you take out a loan
Taking out a loan for whatever size is usually a long-term commitment, because of this it is wise to think if you have any other options before taking one out that might be better than borrowing. If you have any savings it might be beneficial to use these instead, as it may be that the interest you pay on a loan will be higher than any interest you earn in your savings.
There are other types of borrowing than personal and home owner loans such as authorised overdrafts and credit cards you might wish to consider.
It is also important to consider if you are thinking of taking out a loan to consolidate debt that spreading your payments over a longer term means you may ultimately be paying more overall than with your existing arrangements, even if the interest rate on this new loan is less than the rates you have at the moment.