A simples guide

Santander bank loans

What will you do with your Santander loan? With personal loans available up to £20,000, there are a number of possibilities. You could use the money for a much needed family holiday, a new car, an extension or if you’re being sensible, you could use it to straighten out your finances. Whatever you choose to use it for, here’s the lowdown on a Santander bank loan.


What loans do Santander offer?

Personal loans are available from £1,000 up to a maximum of £20,000 for new and existing customers.  

If you like the sound of a Santander loan, here they are at a glance:

Personal loans £1,000 - £20,000 (as at 05 April 2016)

You’ll need to:

- be 21 or over

- live in the UK permanently

- pay it back over 12-60 months

You’ll need to have:

- a bank or building society account with a Direct Debit facility

- a gross annual income of £6,000

In the last 6 years, you can’t have:

- had any County Court Judgements (CCJs)

- had any Individual Voluntary Arrangements (IVAs)

- been declared bankrupt

What are the APRs like?

If you’re interested in a personal loan and you’re already a 1|2|3 World and Santander Select customer then you’ll typically enjoy APRs from 3.5% (annual percentage rate, this is the rate of interest plus any fees and charges) or, if you’re new to Santander then an APR of 3.6% would typically apply. Here’s a table to show how the APR stacks up against different loan amounts...

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Typical APR rates for a Santander personal loan (as at 05 April 2016).

Loan amount                   Existing Santander customer                New customers

£1,000 - £2,999                                 20.6%                                                21.1%
£3,000 - £4,999                                 13.6%                                                14.1%
£5,000 - £7,499                                 4.4%                                                   4.9%
£7,500 - £20,000                               3.5%                                                   3.6%


Are the rates I see the rates I’ll get?

If we’re honest (and we are) then the answer is: it depends. The rates you’ll see advertised will be based on a typical, model customer. When you apply, various factors will be taken into consideration such as:

Your credit history: there are three agencies that hold information about your credit history (Experian, Call Compass and Equifax) what they have to say about your credit behaviour over the last six years will have an impact on what you can borrow and at what rates.

Your debts (secured or unsecured): how much money you already owe will also be an important factor. A secured loan is one where the loan you’ve taken out is held against something tangible such as a car or your home. An unsecured loan is the opposite where there is no security and money is loaned to you based solely on how ‘credit worthy’ you are.

Your monthly income: because you’re expected to pay the loan back (and within the period of time you’ve agreed) Santander will need to know what you take home each month and any expenses so that they’re confident you can meet the repayments.

How much you want: the amount you want and the length of time you want it for will be determining factors in what you’re charged.

Your management skills: how you manage your existing bank accounts will be a deciding factor too.

The next thing to do is compare the market to see what else is available as there are a range of options out there. Don’t forget that you should always remember the golden rule of borrowing – pay up on time. If you don’t you could end up owing far more than you ever borrowed and it could affect your credit score and any future loans you apply for. 

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