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Post Office loans calculator and review November 2019
Stamps? Check. Financial services? Check. Post Office Money now offers first class personal loans, and you can check if you're eligible in minutes, without affecting your credit score, using the "Fast Checker".
Key features of Post Office Money personal loans
Post Office Money personal loans are unsecured loans – meaning they’re be based on creditworthiness, rather than using property, a vehicle or other asset as collateral. The loans are available over a period of 1-3 years for loans between £1,000 and £3,000, 1-5 years for loans between £3,001 and £15,000, and for 1-7 years for loans between £15,001 and £25,000.
While Post Office Money rates are normally competitive, the advertised representative APR may not be the rate you’ll receive: Post Office Money will offer you a rate based on factors including your credit score, your income and your expenditure. We base our calculations on the advertised APR.
|Loan type||Unsecured Personal Loan|
|Loan amounts||£1,000.00 to £25,000.00|
|Loan terms||1 Year to 7 Years|
|Loan rate type||Fixed|
|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|
|Repayment methods||Direct Debit|
Post Office Personal Loans are provided by Bank of Ireland UK. Post Office Limited is a credit broker and not a lender.
What is the representative APR?
The Annual Percentage Rate (APR) is designed to provide an annual summary of the cost of a loan. All lenders must calculate it using the same formula. It takes into account both interest and any mandatory charges to be paid (for example an arrangement fee) over the duration of a loan. Post Office Money doesn’t charge application/arrangement fees, so its interest rate and representative APR are one and the same.
Crucially though, lenders are only obliged to award this rate to 51% of those who take out the loan (hence the “representative”) – the other 49% could be offered a higher rate. Since Post Office Money advertises some of the most competitive rates you’ll find on the market, it’s likely that applicants will need excellent credit to bag those rates.
Am I eligible for a Post Office Money personal loan?
You should only apply for a Post Office Money personal loan if you’re certain you can meet the repayment terms, and you meet the following criteria:
- You must be aged over 21, and no older than 70 when the loan ends.
- Have an annual income of at least £12,000. If you’re self employed, you must have been employed for a minimum of 2 years.
- Have lived in the UK for at least three years.
- Have a UK based bank or building society account that can pay direct debits.
- Have a good credit rating without a history of County Court Judgement or bankruptcy.
How do I apply?
If you’ve decided that a Post Office Money personal loan is for you, then make sure you have the following information handy for your application:
Before you apply, it’s a smart idea to check your eligibility using Post Office Money’s “Fast Checker”. This will give you a clear indication of the likelihood that your application would be approved, plus an estimate of the rate you’d be offered.
Pros and cons
- Competitive interest rates. Post Office Money is frequently to found battling it out at the top of comparison tables for the cheapest loan rates.
- Eligibility checker. Like most lenders, Post Office Money can now give you a clear indication as to your likelihood of being approved for a loan, before you apply.
- Instant decisions. Most of the time, you’ll get an decision on your application within seconds.
- Next day funding facility. Your loan may be funded the next day, although Post Office Money doesn’t clarify exactly when this facility is available (loan companies sometimes don’t transfer funds outside of office hours).
- Flexibility over early repayment. There’s no penalty fee for paying some or all of your loan ahead of time, and if you do overpay, you can ask to shorten your loan or reduce your remaining monthly repayments (choosing the former will usually work out cheaper).
- You’ll need good credit. Rates this low usually mean you’ll need a decent credit record to get approved.
- No repayment holiday option. While some lenders give you a month or two at the beginning of your loan before you need to start making repayments, Post Office Money has opted not to. On the other hand, repayment holidays push up the overall cost of borrowing significantly.
- Tracking your loan could be easier. If you want to check your balance or change any details, you’ll need to phone Post Office Money.
Fast, flexible loans from Post Office Money
- Borrow from £1,000 to £25,000
- Instant decision in most cases
- Fixed rate and fixed monthly payments over the whole term
- Applications from self-employed considered
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.
Frequently asked questions