The Metro Bank Personal Loan charges 7.9%APR representative on loans between £2,000 and £25,000. Metro Bank offers the loan with repayment terms between 1 and 5years and applicants can apply to borrow from £2,000 to £25,000.
Overview of features
Unsecured Personal Loan
£2,000.00 to £25,000.00
1 Year to 5 Years
Loan rate type
Same day funding available
Instant decisions in most cases
Soft-search facility available
Overpay without penalty
Concurrent loans allowed
Topping-up pays off existing loan and initiates a new loan
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.
What is Metro Bank?
Metro Bank opened in 2010 – the first new bank on the UK high street in 150 years. It prides itself on being a new kind of high street bank: simple services with the personal in-store touch, and you can bring your dog too! As the official bank of the pet-lover (its stores give out dog biscuits and it’s a friend of the Kennel Club and Battersea Cats and Dogs Home), this bank has figured out the way to Britain’s heart, but is Metro Bank barking mad or practically purr-fect?
Does Metro bank do loans?
Yes, Metro Bank currently offer personal loans up to £25,000. However, bucking the trend of closing high-street banks, it offers straightforward fixed rate loans from its “stores” – you can’t apply online, and you will need to have a Metro Bank current account.
How do Metro Bank loans work?
Metro Bank is especially proud of its “single fixed-rate APR”, but what does that mean exactly?
Most lenders have different interest rates for different loan durations, or for different loan amounts. Additionally, most lenders will also tailor the rate that they offer to the individual who has applied. In other words, if you have a poor credit rating, or low income vs. expenditure, a lender might deem your loan to be higher risk, and offer you a higher rate than that advertised.
Metro Bank, however, says that if your loan application is successful, the interest rate you pay will not be affected by your personal circumstances or by the amount of the loan or the period over which it is to be repaid. Provided they’re approved for a loan, borrowers needn’t feel like they’re being discriminated against.
So is there a catch? Well, you do have to hold a Metro Bank current account. That’s not unusual from a high street bank, but it will turn some potential borrowers off.
What credit score do I need to get a Metro Bank loan?
Metro Bank typically offers loans to applicants with high credit scores. It's important to note that your credit record is just one factor that Metro Bank will consider, however if you don't have a high credit score, you're very unlikely to get approved for a Metro Bank loan.
A "Good" or "Excellent" credit rating would require a score of 881 or higher, if you're referring to Experian's scale, 420 or higher if you're referring to Equifax's scale and 604 or higher if you're referring to TransUnion's scale.
Do Metro Bank loans give an instant decision?
No, currently decisions aren't instant.
Can I get a second Metro Bank loan?
Yes, Metro Bank allows you to have more than one loan running at the same time. Each application for credit will be considered on its own merit. Alternatively, Metro Bank also allows you to effectively "top up" your loan, by closing your current loan and starting a new, larger loan. There's no penalty for repaying ahead of time, but bear in mind that any overpayments may be subject to up to two months of interest beyond the date on which you overpay. Because of this, it may work out cheaper to run a second loan alongside the first, rather than consolidating the two.
Can I make overpayments on a Metro Bank loan?
Yes, you can make overpayments without incurring any penalty fee. However Metro Bank can continue to charge interest for up to two months on any sums overpaid, so although making overpayments stands to save you money in interest, you may not save quite as much as you'd imagined.
Am I eligible for a Metro Bank personal loan?
You should only apply for a Metro Bank personal loan if you’re certain you can meet the repayment terms, and you meet the following criteria:
You’re aged 18 or over.
You’re resident in the UK. You’ll also need to provide proof of your identity and address. If you’re not a UK, EU, EEA, or Swiss national you’ll need a valid visa/residence permit.
You have a Metro Bank Current Account.
Metro Bank loans are decided based on credit rating, so a good credit score is a must too.
How can I apply?
Metro Bank prides itself on being a new kind of bank – one which is open when you need it and can get you what you want right then and there.
You can only apply for a Metro Bank personal loan if you already hold a Metro Bank current account, and you have to apply in-store. Simply visit your local Metro Bank and speak to an advisor. You’ll need to bring with you:
Your address details and proof of address
Proof of your personal circumstances (payslips, employment details)
Metro Bank stores are open 7 days a week and from 8am-8pm on weekends.
Is Metro Bank safe?
Metro Bank is a recognised UK bank and is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. Eligible deposits are also protected up to £85,000.
Frequently asked questions
Metro Bank is a responsible lender and won’t lend money unless it deems this to be affordable to the borrower. Metro Bank does sometimes offer additional credit to its existing loan customers, however.
When you apply for a loan from Metro Bank, you’ll be assessed through a process called ‘credit scoring’. Your credit score is based on information such as your ability to repay, your credit history and how long you’ve lived at your current UK address, and will be used by Metro Bank to help them decide whether or not to offer you a loan. Metro Bank do this because they don’t want to give you a loan that will end up potentially worsening, rather than improving, your financial circumstances.
There’s no arrangement fee, however you will pay interest on the loan. There’s also no early repayment fee.
Yes. As long as it is affordable, Metro Bank allow you to merge different debts into one. Remember that doing so may incur fees and charges for switching your loan to a new lender.
No. Your interest rate is guaranteed for the duration of your loan once you’ve signed the agreement. It’ll stay the same no matter how much you borrow.
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Chris Lilly is a publisher at finder.com. He's a specialist in credit-based products including business and personal loans, mortgages and credit cards, and is passionate about helping UK consumers make informed decisions about their borrowing. In his spare time Chris likes forcing his kids to exercise more.
Metro Bank’s no-frills card comes with a single competitive rate and no fees on overseas transactions within Europe.
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