Post Office Money now provides personal loans to customers, and these can range anywhere from £1000 to £25,000. These unsecured loans offer decent interest rates and are better than many other lenders you’ll find on the high street or online at the money. You can stretch out the repayments over the course of 7 years if you wish to. The amount of money you can borrow will depend on your income; the Post Office won’t lend more than 75% of it to you.
The loans they offer tend to be front-loaded, which means you pay more at the start of the term. Either that, or the interest rate attached to the loan at the beginning will be greater. If you want to apply for a loan from the Post Office, they will deal with your application very quickly, usually aiming to make their decision and respond within 4 working days, which is useful for people who don’t want to be left waiting for too long.
The first thing to talk about regarding personal loans offered by the Post Office is the interest rate. Right now, the interest rate is set at 3.1% APR for people borrowing £25,000. The interest rate, of course, rises depending on if you borrow less. If you want to borrow in the lowest loan bracket of £1000 to £2999, you will have an interest rate of 16.9% APR attached to your loan. That’s the highest interest rate that can be attached to a Post Office personal loan right now.
The rates are fixed, which is another bonus if you’re worried about rates rising in the years ahead. Many personal loans will choose a rate based on your credit score, but that’s not the case with the Post Office, and there’s no arrangement fee for you to pay either. The only charge you’ll get is if you don’t pay your direct debit on month, and this charge fee is set at £12. It’s also worth knowing that these loans are funded by Bank of Ireland UK.
Taking out a personal loan can sometimes be a long and stressful process but that’s not the case with the Post Office. You can even check how likely you are to be accepted for the loan before you start the application process. You just need to head to the relevant Post Office Money page, input some details about yourself and your personal finances, and then you will be told how likely your application is to be accepted.
This is a pretty reliable service used by plenty of people. You might have to pay slightly more to pay off a front-loaded loan early, but it can also be a benefit for many people. At 3.1% APR fixed for the highest amount you can borrow, there’s not much to complain about regarding the interest rate right now. And the fact that you can pay it off over the course of 12 months to 84 months means that the power really is in your hands.