Personal loans are the most common type of loan. The market for personal loans is very competitive with the major supermarkets joining the other key players in providing competitive rates for the consumer.
A personal loan is a form of unsecured borrowing and this gives less risk to the consumer than a secured loan. One of the key features of a personal loan is that it provides the borrower with structured repayments so that the consumer knows exactly how much they will have to repay each month, how long it will take to repay all of the personal loan and the total interest element of the overall charge.
Personal loans for small amounts up to £1,000 typically charge a higher interest rate. The best value loans in terms of interest charge are loans between the value of £7,500 – £14,999. Currently, June 2011, loans of this value can be found charging interest as low as 6.7 per cent over a typical repayment period of 36 or 60 months.
- First Direct launch personal loan at lowest ever rate of 5.1%
- Derbyshire BS cuts personal loan rate to 5.1 per cent
- M&S Bank cuts personal loan rate to 5.8%
- Tesco Bank cuts personal loan rate to just 5.2%
- Derbyshire BS cuts personal loan rate to 5.4 per cent
- Sainsbury's Bank cuts personal loan rate to 5.4 per cent
- M&S unveils best-buy personal loan rate at 5.5%
- Sainsbury’s promises to beat competitors’ personal loan rates
- Clydesdale & Yorkshire bank cut personal loan rate to 5.7%
- AA cuts personal loan rates for members