So how do I find the right low interest loan?
We all want the best possible loan. To find a cheap one, you’ll want to look at the APR (Annual Percentage Rate). Choosing a low APR is the easiest way to save money on your repayments.
As a general rule, the more you borrow, the lower the rate. Say you’re charged 9% interest on a £3000 loan, but only 6% on a £7000 loan. It may make sense to borrow the slightly larger amount - say £7,000 instead of £6,500 - to take advantage of the lower rate of interest.
Can I apply for a low interest loan?
Yes. Loans are pretty accessible at the moment, as interest rates are at an all time low. A price war between lenders has seen rates plummet – to as little as 3.2% a year.
Not only that, but there are loads of bad credit loans available on the market today. So even if you have a bad or non-existent credit rating, getting a low interest rate loan isn’t out of your reach.
Is a low interest rate loan the best option for me?
Just like credit cards, personal loan deals vary widely. Securing the best term and interest rate can save you a lot of money. But getting the best interest rates doesn’t just depend on who you borrow from, but how much you borrow and for how long.
Low interest rate loans, like any loan, are a commitment. So you also need to think about the following:
- Can you afford the monthly repayments?
- Are your circumstances likely to change in a way that could affect your repayments?
- Will the lender allow you to pay back the loan early?
- Is there an arrangement fee?
- Can you defer loan payments if you need to?
Using our simple comparison table you can compare low interest rate loans from some of the UK’s leading loan providers. Not only will this save you hours trudging up and down the high street, or on the phone to providers, but using our best buy table, you can compare loan providers, products, representative APRs, total amount repayable and monthly repayments, to find the low interest loan that’s right for you – in meer-kat seconds!