Compare the Lowest Personal Loan Rates
Find the cheapest personal loan by comparing the total fees you’ll pay over the life of your loan
Whether your car has broken down and needs repairs, you have an unexpected debt arise or you’re wanting to go on a holiday with the family, a personal loan can come in very handy for an additional boost of funds. But it’s important to consider a range of things before deciding on a personal loan. While it’s important to consider the cheapest personal loan rates when you’re deciding on a loan, there are also conditions to assess before making your decision.
To make the process simpler we’ve highlighted some of the most important factors you need to be aware of before taking on a personal loan.
Early and late payment penalties
If you are thinking about applying for a fixed personal loan there are several different conditions you need to be aware of. Firstly, you’ll have a fixed rate of interest you will need to pay throughout the entire period of your loan, which will be included in the contract up front. There is a limitation with a majority of fixed personal loans, which is you are locked in for the entire period of the loan, so if you want to pay it out early you will generally be charged an early payment penalty on top of the excess left on your loan. Also, if you pay the loan off later than the fixed term you will also be charged a late payment penalty.
Higher interest rates
An unsecured personal loan doesn’t require an asset as security, but as this type of loan has a higher level of risk for investors, the interest can be higher. Unfortunately, if you default on your loan the lender is able to take action against you to recover their money. You are often given the option with an unsecured personal loan to be able to appoint a guarantor who can provide security to the lender, which they are able to claim if you can’t pay your loan.
Asset required for security
With secured loans, an asset needs to be offered as security for the loan. This can be a car, computer, boat or whatever the lender believes is viable for the amount of the loan. While this type of loan is often far easier to have approved from a lender, as they have the security of the asset, it’s crucial that you understand if you stop making repayments your asset will be sold to recoup the losses.
Faster repayments reduce fees
Depending on the personal loan you are interested in, with a wide range of loans you can pay off the loan earlier and pay fewer fees.
You can also navigate to our simple and easy independent Loan Rate Comparison to see the different loans and the lowest personal loan rates available through a wide range of lenders. By being able to compare the loans, conditions, and rates you can make a more informed decision when deciding on which personal loan is right for your requirements.