Unsecured personal loans are loans that do not require the security of your property. This increases the risk for lenders, so they can be more difficult to obtain than secure loans. Lenders advertise the typical rate; those with adverse credit may be charged a higher APR due to the perceived increased risk. Secure loans do require the security of your property though can be easier to obtain.

1. Loan purpose
2. Loan amount
3. Payment protection insurance
4. APR and unsecured personal loans
5. Loan repayment term
6. Personal loan interest rates

The information on this website is not intended as advice, it is purely for information purposes only. If you would like financial advice please contact us so that we can take your individual circumstances into consideration.

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The purpose of the loan is important to lenders, lenders are less likely to provide an unsecured personal loan to fund new business venture for example. Individual lenders have different policies regarding acceptable purposes for a loan
.

Lenders typically offer unsecured personal between £1,000 and £25, 000. The amount they are prepared to offer is determined by individual circumstance.

1. Income
2. Financial position
3. Credit history
   

Payment protection insurance can be obtained to cover monthly loan payments in the event of accident, sickness, unemployment or death. You can choose a level of cover that suits your circumstances; check the policy terms and any conditions for inclusions and exclusions that apply. This is a useful product for many though payment protection insurance will vary between lenders in terms of price and cover.

Always compare prices of payment protection insurance between lenders, expensive payment protection insurance can make a loan more costly and less competitive even if the loan offers a low interest rate. Loan repayment protection can be provided separately as a stand-alone policy so look for the best deals.

Find out about the best deals for payment protection insurance contact our online independent financial advisor for free advice from Finance Surgery.

The APR annual percentage rate or interest rate charged on personal loans can be compared between lenders; often providing a good indicator of how competitive a deal is. Beware of other expenses that could increase the cost of the loan such as high payment protection insurance, if your planning to purchase it. Don’t forget the Internet when your shopping around, lending institutions realise the competitive nature of the web and may advertise lower deals online.

Consider the implications before agreeing to the loan repayment term. The longer the term the more interest you pay. Loan providers normally offer terms relative to the loan amount, longer periods for larger amounts.

Personal loan interest rates

1. Variable interest rate
2. Fixed interest rate

Fixed interest rates

The APR charged on your loan will remain the same during the life of your repayment term; this will be independent of any fluctuations in the base rate.

Variable interest rates

Variable interest rates change inline with the base rate meaning there is uncertainty with monthly repayment amounts. This can be a more risky option, but if interest rates only fall throughout the loan repayment period, it could save you money.

See also:
Secure Loans