For fair understanding of LLOYDS Bank personal loans, we can say that someone need £15,000 personal loan for use. He applies with LLOYDS Bank for Personal Loan for a period of 5 years. He needs to pay £275.11 monthly for 60 months, together with interest (which is 3.9% illustrative) and principal amount. And total that he would repay will be £16,506 in 5 years. But LLOYDS bank mentioned that rate could be higher than this depending on someone financial position and credit score Rate of interest charge will vary depending on your loan period and amount.
A borrower can borrow loan amount ranging from £1,000 to £35,000 for a period starting from 12 months to 84 months. the rate of interest charged by this bank on personal loan could vary from 3.83% minimum to 29.9% maximum. Also, Borrower should have current Account in LLOYDS Bank older than one month.
Interest Charging Mechanism in LLOYDS bank personal loan.
first of all, you have to understand that to compare different banks personal loans you have to compare these banks APR rate and not nominal interest rate.
APR annual percentage rate is the rate which account for other loan associated cost and give fair cost of loan. While nominal rate of interest only account for interest cost and ignore other related cost.
Explanation of APR Charging Mechanism in LLOYDS Bank
APR charge by LLOYDS Bank change with change in amount of loan and credit history of borrows and it is possible for one person APR for £15,000 would be 3.9% and for other person on same loan amount APR would be 15% this depends on someone personal circumstances. You will come to know after on exact APR rate charge after applying with LLOYDS Bank, and after that you would have option to accept and sign the contract or reject the rates and chose another one. you can get more detailed understanding on LLOYDS Bank personal loan here.
LLOYDS Bank Do not Allow personal loan for following purpose
- Purchasing share in stocks markets
- Business related purposes
- for purchasing or leasing property or part payment
- all illegal activities
- holidays Clubs
More flexibility in applying : it allows borrower to apply for personal loan more quickly and easily.it allows borrower to apply loan on one phone when you are an existing customer you can call then LLOYDS Bank and apply for personal loan. It offers borrower facility to apply online and usually get on spot decision about loan amount eligibility and rate.
Fixed interest Rate APR; it charge fixed rate of interest which allows better cash flows management.
Flexible Eligibility criteria When we see eligibility criteria it shows relaxed terms other banks such as there is no minimum income threshold required. And also, the age limit is starting from 18 years and mostly other banks start loan from the age of 21. If you are young this is opportunity for you to apply but compare the interest rate charged by banks before apply.
Please review terms and condition before apply for personal loan in this bank . If you need to compare with other banks personal loans you can check HSBC personal loan.
Haley Hayward is an experienced writer at gblogo.com, where she’s credited with more than 200 articles covering everything from entrepreneurial stories to mental health at work.
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Prior to joining gblogo.com, Haley honed her skills as a freelance writer, tackling a wide array of topics from petcare to car maintenance.
Haley holds a Master’s degree in English Literature from the University of Edinburgh, Scotland.