Personal Loans

These loans are also known as term loans and are availble from a variety of sources . Banks and building societies offer these loans to customers. These loans are suitable for medium and longer term needs, for example, a car loan or a loan for home improvements.

On these loans, typical APRs currently range from between 7.5% to 11%. Banks or building societies may also charge other fees and charges. Generally, you pay a fixed amount back every month. If your loan is a variable rate loan you may be able to pay more than this back when you have it. This allows you to pay off the loan sooner. It is not advisable to take out a personal loan to cover day-to-day expenses as if necessary, this is better dealt by means of an overdraft