How do Lloyds Bank personal loans compare against the competition’s?
What is Lloyds Bank?
Lloyds bank plc is a retail and commercial bank founded in Birmingham 1765, considered one of the “big four” banks in the UK. You can apply for a personal loan from Lloyds online, in branch or over the phone.
If you’re looking to buy a new car, consolidate debt, refurbish the kitchen, or take that desperately needed holiday, Lloyds offers a wide range of borrowing options.
Key features of Lloyd’s personal loans
Lloyds offers unsecured personal loans, meaning they’re be based on creditworthiness, rather than using property, vehicles and other assets as collateral. The loans are available over a period of 1-7 years for loans between £1,000 and £50,000.
While Lloyds rates are normally competitive, the representative APR may not be the rate you’ll receive: Lloyds will offer you a rate based on assessment of your personal financial circumstances.
All 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.
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.
Am I eligible for a Lloyds personal loan?
When applying for a Lloyds personal loan, factors such as your credit history, income and the amount you apply for will be considered. You also need to be certain you can meet the repayment terms. You’ll then also need to meet the following criteria:
However because Lloyds personal loans are only available to Lloyds current account holders, if that includes you, you may not need to jump through so many hoops!
How do I apply?
If you’ve decided that a Lloyds personal loan is for you, then you can apply online by logging in to your existing Lloyds bank account and following the loans application process.
Frequently asked questions
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