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Ikano Bank was launched by IKEA founder Ingvar Kamprad in 1995. It set up its Nottingham headquarters and began offering personal loans to UK customers more than 20 years ago.
More than a third of loans paid out by Ikano Bank are car loans – find out more about what it has to offer, in our review.
Buying a car on finance requires you to commit to monthly payments, so make sure you carefully work out your budget and choose an affordable option. Don’t forget to take into consideration other costs you’ll need to cover, such as road tax, insurance and MOT, before making your final decision. Late repayments will damage your credit score, making it harder to source finance in the future.
It’s quick and easy to apply for a car via the Ikano Bank website. Below, we outline the key details.
Warning: late repayments can cause you serious money problems. See our debt help guides.
Interest rates are fixed for the duration of your repayment period, however the rate you’re offered will depend on factors like the amount you apply for, the term of the loan, your credit rating and your income. It may differ from the advertised “representative APR”.
You should only apply for a Ikano Bank personal loan if you’re certain you can meet the repayment terms, and you meet the following criteria:
Ikano Bank says its online application takes two minutes to complete. At this point, you’ll receive a quote that has no impact on your credit score. You’ll need to provide proof of the following:
All lenders must calculate the APR of their products in the same way and must tell you the APR before you sign an agreement, so for consumers it can be a handy tool for comparison, alongside other features such as the total amount payable.
Bear in mind, however, that lenders are only obliged to award this rate to 51% of those who take out the loan – the other 49% could pay more. That’s why it’s often referred to as the representative APR.
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