Cahoot Bank Personal Loan5 min read

Cahoot Bank is a division of Santander bank UK plc. To understands more clearly about Cahoot Bank product Personal Loan; we can start by assuming that you need a £15,000 personal loan. And you apply with Cahoot Bank for Personal Loan for a period of 5 years. You need to pay £267.96. In 60 monthly installments, which includes interest (2.8% APR Representative rate), and principal amount. So the total amount you need to repay; would be £16,077.60 minimum on a loan of £15000 in 5 years. This information is derived from Cahoot Bank Personal Loan Calculator. Cahoot Bank mentioned that the interest rate (APR) showing in the calculator is only for illustrative purposes. And APR may be higher based on the credit record and financial position. After carefully analyzing I derived that amount of loan is the second most influencing factor on the rate of ARP charged.

you would be interested to know what is  APR(annual percentage rate) APR is explained below in an easy way.

Cahoot Bank allows offers loan from £1000 to £20000 and period of the loan is showing little flexibility and range from 12 to 60 months. APR charged by Cahoot Bank would vary from 2.8% minimum to 24.9% maximum which is attractive compare to others. Age allows for Cahoot Bank personal loan is 21 years minimum and minimum annual income required is £6000. Means anybody who is a UK resident and earning £6000 can apply for a loan by following terms and conditions.

APR and its APR charging mechanism in Cahoot Bank personal loans

What is APR (Annual percentage rate)!

APR is the rate charged by s which includes the interest and other associated costs on loan such as upfront fee. APR gives a clear and fair picture while the nominal interest rate includes only interest cost. Nominal interest rates do not give a fair picture of loan cost and can be used as a marketing tool by s. So this is suggested that whenever you need to compare two banks’ personal loans compare ARP offered by both s.

APR change with changing in Amount of loan

Annual percentage rate charged by Cahoot Bank depends more on loan amount and less on loan period here we will look how:

  1. If the amount is between £1000 to £2,999: if we analyze the loan calculator carefully we can find out that ARP is varying depending on the amount. And APR charge for the amount of loan starting from £1000 to £2,999 would be 13.5% minimum.
  2. For amount in between £3000 to £7499: and rate of APR charge would reduce if the amount starts increasing.APR charged would be 3.8% for the amount of loan falling within the range of 3000 to 7499 pounds.
  3. And from £7499 to £20000 of amount: annual percentage rate charged by the Cahoot Bank for a personal loan is decreasing with increase in the amount of loan. We find out that the rate of interest charge goes down to 2.8% minimum when the amount increases from 7500 to £20000.

If you want to check how this Annual percentage rate APR will be charged on your amount of loan. You can check here on Cahoot Bank personal loan calculator.

Eligibility criteria of Cahoot Bank personal loan

  • Your age must be more than 21 years or more
  • You have to UK permanent resident
  • Borrower’s annual income must be more than 6000£.
  • The borrower should allow direct debit on repayment. Direct debit repayments mean that on every monthly installment date, an amount of monthly installment would be deducted /transferred automatically.

Cahoot Bank Personal Loan and limitation on its use:

Cahoot Bank allowed personal loans for any purposes such as home improvement and travel to desired places. It offers personal loans for gift and wedding financing.

But Cahoot Bank banks highlight many purpose of loan use where it can be used and hence it becomes less competitive. Following are some main restricts categories for the use of personal.

Restricted to use for business purposes:

 Cahoot Bank limits the small business owner to use the fund and hence reduce the customers in fact.

Not allow to use for purchasing property:

In its specified term and conditions Cahoot bank highlighted many categories and restrict its use in purchasing any property. Cahoot bank mention that a personal loan will not be allowed for purchasing any kind of property inside and outside the country .also it will not be allowed for partial payment of any kind of land purchasing or installment payments.

Restricted to use in CSA payments, living expenses and household bills payments:  

If you need a loan for living expenses CSA payment, taxes payment, and house bill bills payment. In that case, you have to look for other opportunities and other banks.

 Not allowed to invest in shares:

 If you are someone who is very good in stock market analysis and want earn money through personal loan funding. Cahoot bank will not help you.

  • Others categories :

Such as gambling, borrowing on behalf of third party and equity transfer in all such kind of categories Cahoot is not going to issue personal loan.

Key option

  • The fixed interest rate charged: this fixed interest rate gives the facility of easy budgeting and planning of repayment instead of speculation.
  • No Setup fee/ Arrangement Fee: it is mention in the key feature of the Cahoot bank personal loan that it will not charge any kind of set up of arrangement fee.
  • On Spot Decision: Cahoot when you apply through online applications bank will give a decision within 5 minutes of application on loan acceptance or rejection.
  • Right to cancel: Cahoot bank offers the right to cancel the contract within 14 days after starting the contract. Once the borrower chooses to cancel the contract that he cannot reverse .also he has to return the cash within 28 days of opting for cancelation.

Please read the terms and conditions; if you opted to apply for a personal loan with Cahoot Bank. You can compare with other banks such as M&S bank personal loan which will help you in the decision.