The Automobile Association is a credit broker that facilitates loans for individuals and organizations on behalf of Bank of Ireland. It offers loans from £1,000 to £25,000 with no arrangement or set up fees.
Automobile Association personal loan has fixed Annual Percentage Rate (APR) of 3.2% for amounts between £15,000 and £25,000. There’s also an option for the borrower to pay off their debt ahead of the scheduled payment date with no extra charges.
The rate varies depending on the loan amount, term, credit rating and individual situation. However, 29.9% APR is the maximum you can receive.
The AA also provides short term loans with no collateral. However, no matter the amount borrowed, 7 years is the maximum repayment period.
How Automobile Association Personal Loan Work
Let’s assume you borrow a typical 3-year loan for £4,000. With a fixed APR of 8.9%, you’d expect to pay £549.32 in interest charges in addition to the borrowed £4,000. So in total you’ll repay £4,549.32. If you divide the total sum by 3 years of 12 installments each, your monthly payment will be £126.37.
Considering there are no origination fees or prepayment penalties for paying your loan off early, this is a pretty good deal.
AA personal loans in a nutshell:
- 3.2% fixed Representative APR for amounts between £15,000 and £25,000
- 29.9% APR is the maximum a borrower can receive
- Fixed monthly payments on the loan term
- Lower rates for members
- If approved, you’ll receive the money almost immediately. In some instances it may take longer.
- You can pay more than agreed monthly repayment or pay in full with no extra charges or penalties.
The company also provides car and home improvement loans should you need some assistance.
It’s also important to note that AA offers different rates for its members. Visit their site for more information about this and more.
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