Finding the Lowest Rate Personal Loan

Written by Karen Bryan

finding the lowest rate personal loanUK interest rates are pretty low at the moment, which is bad news for savers but good news for borrowers. If you also factor in a rate of inflation of around 5%, then some of current personal loans on offer with an interest rate between 6-7%  look quite appealing. If you have a good credit rating you should be able to get the loan at the lowest advertised rate. If you want to borrow money, you should check out personal loans on a price comparison site to make sure that you find the best possible deal.

One of the lowest rate personal loans I could find (on 30 November 2011) was 6.2% with the Nationwide. The minimum loan amount was £7,500 and the maximum £25,000. You could repay the loan over a period of between 12-60 months. I’d recommend that you take the loan over the shortest possible period so you save on interest payment.  However you need to look at your essential spending to ensure that you have enough spare money to commit to these loan repayments every month.

I liked the slider on the Nationwide site which allows you to instantly see your monthly repayments when you change either the loan amount or repayment timescale. If you have a Nationwide Main Flex Account you can qualify for a discount of 0.1% on the interest rate payable on loans of between £7,500-£20,000.

I prefer to try to live debt free but if you make the decision to go into debt shop around to get the lowest rate personal loan and make sure that all the loan repayments are made on time by setting up a direct debit.

Warning

This article is based on my own research and understanding of the product. You should very carefully read all the tems and conditions before taking out a loan. You may also wish to seek professional financial advice.