Home | Credit Report | Credit Card | Loan | Insurance | Gas & Electricity | Mobile Phone

CREDIT
Credit Report
Credit Score
Credit Monitoring
Improve Credit Rating
Credit Repair
Identity Fraud
Credit Bureaus
Free Credit Report

CREDIT CARD
Choosing A Card
Credit Card Interest
Balance Transfer
Switching Cards
Cash Back Credit Cards
Airline Mileage Credit Cards
Credit Cards For Bad Credit
What To Do When Applying For A Card

LOAN
Mortgage
Remortgage
Debt Consolidation
Personal Loan
Payday Loan
Bad Credit Loan
Secured Loan
Credit Score and Loan Interest Rates

INSURANCE
Car Insurance
Home Insurance
Life Insurance
Medical Insurance
Dental Insurance
Travel Insurance
Bike Insurance
Pet Insurance

TRAVEL
UK Travel Tips
Major Travel Spots
Airports
Airlines
Hotels
Vacation
Package Deals

GAS & ELECTRICITY
How to switch
What to consider
Energy saving Tips

TELEPHONE
How to switch?
Things to consider
How to find the best deal?

BROADBAND INTERNET
Why and how to switch?
Things to consider
VOIP

MOBILE PHONE
How to buy the right mobile phone
How to switch
How to compare mobile phone tariffs

NEWS
Latest Consumer News



Personal Loan

What are personal loans?
Personal loans are also known as term loans in the UK. This is because these loans are taken for a particular period of time and then have to be returned along with interest as agreed in the terms and conditions. The personal loans in UK are typically offered by banks and other financial institutions. The personal loans are given for a fixed term with regular monthly repayments. The interest rate may be fixed or variable and it depends on the type of loan and also on the lender. The lenders have their own condition of approving the loans and deciding the maximum amount they will lend to you. Customers who pay their loans early are normally entitled to a rebate on the total cost of credit. The amount of credit to be given is calculated according to a fixed formula.

More choices
There was a time in the UK and all other countries when you needed a personal loan but you did not have many choices. Only your neighborhood bank or your friends or your relatives would give you a loan. There was no fixed rate of interest or any other fixed norms. The conditions were decided at the time of giving the loan. The procedure was not standardised. The amount of loan that you could borrow was also low and loans in excess of 10000 pounds were virtually unheard off.
Consumers who pay off loans early are entitled to a rebate on the total cost of credit. This rebate is calculated using a specific formula. However the situation has changed now. The personal loan market in UK at present is worth trillions of pounds. One of the major reasons for this uplift is the easy availability of money. The overall economy is growing at a rapid pace and loans are encouraged to develop and grow. You can simply log on to any of the hundreds of British personal loan sites and simply read the conditions and apply for a loan there. Or you can simply pick up the phone, talk to the representative and get a loan arranged in minutes.

How much should you borrow?

You should always borrow not more than what you can afford to pay later. Typically British loan companies encourage you to borrow more as the interest rates on higher loans is less and the administrative costs on smaller loans is small in comparison to larger loans. For example if you borrow a loan of 10000 pounds, you could end up paying an interest rate of 20 per cent.

What type of loan?
You can either go for secured or unsecured loan. In the case of secured loan you provide a certain type of security to the lender in the form of a house or your car in case you are not able to pay your loan on time. As a result the lender is definitely going to give you more loan as he knows his loan is a security cover. A secure loan, on the other hand is a loan without any security cover and hence the amount of loan given is less in comparison to secured loan.
 
   



 

Latest News


February 25, 2012
Consumer sentiment edges up to year high

Consumer sentiment edges up to year highArticle from Reuters: NEW YORK | Fri Feb 24, 2012 10:41am EST NEW YORK (Reuters) – Consumer sentiment improved a tad in February to rack up a year high as Americans became more confident about the economy’s resilience, a survey released on Friday showed. The Thomson Reuters/University of Michigan’s [...]

> Read more


APNewsBreak: NY requires life insurance companies to start paying fully on …

APNewsBreak: NY requires life insurance companies to start paying fully on …Article from Washington Post:ALBANY, N.Y. — New York regulators on Friday told insurance companies they must pay out fully when members of the military are killed in action as the standard practice, rather than automatically establishing a kind of checking account that provides interest [...]

> Read more

February 24, 2012
Credit union director urges payday loan rate cap

Credit union director urges payday loan rate capArticle from BBC News:24 February 2012 Last updated at 12:07 ET Martin Treadgold thinks that the UK should have a cap on APR rates like many European countries The director of a West Midlands credit union has called on the government to cap the maximum interest rate levied [...]

> Read more


Bailed-out insurance company AIG posts $20 billion profit on a tax-related …

Bailed-out insurance company AIG posts $ 20 billion profit on a tax-related …Article from Washington Post:NEW YORK — American International Group, the insurance company that was bailed out by the government in 2008, reported a $ 19.8 billion profit in the fourth quarter of last year, nearly all of it due to a tax-related accounting [...]

> Read more

February 23, 2012
Consumer Comfort in US at Almost the Highest in Four Years

Consumer Comfort in US at Almost the Highest in Four YearsArticle from BusinessWeek:February 23, 2012, 12:09 PM EST Initial Jobless Claims in U.S. Hold at Four-Year Low Jobless Claims in U.S. Unexpectedly Fall to Four-Year Low Margins Widen at U.S. Companies as Wages Lag Behind: Economy Trade Deficit in U.S. Climbed in December to Six-Month [...]

> Read more

 

Home : Credit Report : Credit Card : Loan : Insurance : Travel : Utilities
© 2018. UKConsumerWorld.com. All Rights Reserved.