Bank of Scotland personal loans

Existing customers of Bank of Scotland can apply to borrow as much as £50,000 at a competitive rate. And with smaller loans available too, you could finance anything from a holiday to a wedding, or even Glas-go and get yourself that new car you’ve been eyeing up.

Last updated:

Bank of Scotland

A lender with over 400 years of banking experience, Bank of Scotland is a trusted name on the UK high street. Since being taken over by Lloyds in 2009, the bank has been paired with Halifax as “HBOS” and has been expanding its range of banking services. Not to be confused with the Royal Bank of Scotland (RBS), Bank of Scotland still have the power to issue Scottish banknotes and are responsible for those cool Scottish notes that are definitely legal tender!

Bank of Scotland’s mantra, to make payments easier, means that getting those home renovations done or consolidating previous debt needn’t mean having the extra burden of managing a complicated loan. The only catch? You need to be an existing customer to apply.

Key features of Bank of Scotland personal loans at a glance

  • Available to existing customers of Bank of Scotland
  • Loans of £1,000 to £50,000 over 1- to 7-year terms.
  • Personalised quick quote As well as giving you a clearer idea of the rate and size of loan you’d be eligible for, Bank of Scotland’s personalised quick quote won’t leave a footprint on your credit file.
  • Fixed monthly repayments. A pre-arranged sum will be removed automatically from your Bank of Scotland account each month. You’ll know in advance exactly how much the loan will cost you overall.
  • Option to take a repayment holiday. With its “manage my loan” features on its online baking platform, you have the option to apply for a “payment holiday” – that’s an arranged period where you won’t have to make a loan repayment. You’ll still be charged interest during this time, however, so it will push up the overall cost of the loan, and increase the term.
  • Instant decision. Bank of Scotland take “quick decision” a step further, by offering you an instant decision on your loan application.
  • Easy access to funds. Since you must have a Bank of Scotland account to apply for a loan, the funds will be paid directly into your account and viewable on your existing online banking account.
  • No arrangement fees. Bank of Scotland don’t charge anything for arranging your loan.
  • Make extra payments and overpayments without penalty. Although you won’t pay a fee for early payments, you may be charged up to 58 days’ interest on these amounts. Not quite getting off Scot-free then.

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”.

What is APR?

If you’re comparing any credit-based products, it won’t be long before you’ll come across the Annual Percentage Rate (APR). This figure is designed to provide an annual summary of the cost of a loan. It takes into account both interest and any mandatory charges to be paid (for example an arrangement fee) over the duration of a loan.

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.

Lenders are only obliged to award their advertised APR to 51% of people who take out the loan – the other 49% could pay more. That’s why it’s often referred to as the representative APR.

How do Bank of Scotland personal loans compare against the competition?

Table: sorted by representative APR, promoted deals first

Before you take out a personal loan, it’s smart to read up and shop around. If you’ve been on the Bank of Scotland site to get a quote on your loan, find out how much you’d be likely to pay for the same loan from some popular lenders:

Name Product Total Payable Monthly Repayment Representative APR
Representative example: Borrow £10,000.00 over 3 years at a rate of 5.5% p.a. (fixed). Representative APR 5.5% and total payable £10,848.60 in monthly repayments of £301.35.
Representative example: Borrow £10,000.00 over 3 years at a rate of 3.4% p.a. (fixed). Representative APR 3.4% and total payable £10,524.24 in monthly repayments of £292.34.
Representative example: Borrow £15,001.00 over 3 years at a rate of 3.1% p.a. (fixed). Representative APR 3.1% and total payable £15,718.32 in monthly repayments of £436.62.
Representative example: Borrow £10,000.00 over 3 years at a rate of 3.4% p.a. (fixed). Representative APR 3.4% and total payable £10,524.24 in monthly repayments of £292.34.
Representative example: Borrow £10,000.00 over 3 years at a rate of 3.9% p.a. (fixed). Representative APR 3.9% and total payable £10,601.64 in monthly repayments of £294.49.
Representative example: Borrow £10,000.00 over 3 years at a rate of 2.9% p.a. (fixed). Representative APR 2.9% and total payable £10,447.20 in monthly repayments of £290.20.

Compare up to 4 providers

Important information:
You should always refer to your loan agreement for exact repayment amounts as they may vary from our results.

warning icon Warning: late repayments can cause you serious money problems. See our debt help guides.

Am I eligible for a Bank of Scotland personal loan?

You should only apply for a Bank of Scotland personal loan if you meet the following criteria:

  • You’re an existing Bank of Scotland customer
  • You’re over 18 years old
  • You’re in paid employment or have a regular income
  • You’re not in full time education
  • You have a bank/building society account
  • You’re a UK resident with a permanent UK address (excluding the Channel Islands and the Isle of Man)
  • You haven’t been declined for credit in the last month
  • You have no history of bad credit – such as arrears, county court judgements (CCJs), default or bankruptcy
  • You must also ensure that you can meet the repayments, as missed payments incur a charge of £25 and could have consequences on your ability to obtain credit in the future. It also retains the right to remove money owing from any Bank of Scotland account that you hold, including joint accounts.

How can I apply?

For its personal loans, Bank of Scotland exclusively take applications online through their website. You have to be an existing online banking customer, so you may also need to set up your bank account with an online log in.

Frequently asked questions

We exist to help you find better. The offers we've compared on this page are from a range of products whose details we can track; we don't cover every product on the market...yet. Unless we've indicated otherwise, products are shown in no particular order or ranking. The terms "best", "top", "cheap" (and variations of these) aren't product ratings, although we always explain what's great about a product when we highlight it; this is subject to our terms of use. When you make major financial decisions, it's wise to consider getting independent financial advice. Always consider your own financial circumstances when you compare products so you get what's right for you.

Was this content helpful to you? No  Yes
Go to site