A personal loan is probably the type of loan that you are most aware of.
Personal loans are available everywhere it would seem. Your bank, your building society, even your local supermarket!
A personal loan is usually an unsecured loan. Personal loans are available from a few hundred to thousands of pounds.
The interest rate on the personal loan will usually be fixed for the life of the loan, enabling you to budget for the length of the loan.
What can a personal loan be used for?
This is dependant on the terms and conditions supplied by your lender. But generally a personal loan can be used for anything. Debt consolodation, new car or used car purchase, home extension, school fees, electrical goods and even a holiday. Check with your lender for the exact terms and conditions of your personal loan.
Is there an alternative to a personal loan?
If your requirement for a personal loan is only short term there may be alternatives.
You may be able to arrange an overdraft facility on your current account, or you may be able to borrow the money from your credit card company via a cash advance or credit card cheque.
These alternatives will usually have a more expensive interest rate.
What if I am turned down for an unsecured personal loan?
If you are turned down for an unsecured personal loan, you may be able to apply for a secured loan.