Things To Consider Before Looking For Personal Loans In The UK

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Taking financial aid at a time of a monetary crunch doesn’t differentiate between the rich & poor. Almost every person, once in their lifetime, considers taking out loans. Today, banks, firms, and brokers have come up with different categories of loans with lucrative interest rates (interest rates vary). And, with each type of loan, there are a set of eligibility criteria that are asked to be followed by lenders. Among many types of loans, we have devoted this post to the best personal loans in the UK and what things to consider while looking for personal loans.

Here are a few things to consider before looking for personal loans in the UK: 

The criteria to be eligible for a personal loan?
Meeting the minimal criteria for a personal loan should be your first priority. The fundamental conditions are:

  • You must be at least 18 years old.
  • You earn a consistent living.
  • British citizens must possess a valid non-resident visa or proof of permanent address.
  • Read the available information on your present financial status.

Before beginning the personal loan application procedure, entering your information into the Mortgage calculator will provide you with a useful indication of your current financial situation. Once submitted, your application will be evaluated based on lending standards.

What is the purpose of the personal loan?
Consider your intended purpose for the loan as your next action. There are many different loan types available, so it’s critical to pick one that is appropriate for your needs and intended usage. 

There are three main types of personal loans available.

An Individual Unsecured Loan
An unsecured personal loan is one that is provided without the use of an asset as collateral, such as a car or house. While it does have a slightly higher interest rate than a secured loan, this form of loan gives you the freedom to borrow money without providing any security. It is frequently used for travel, weddings, or debt consolidation.

Auto Loan
With auto loans, one can own a vehicle brand new or used without depending on the bank savings. Given that the car is used as collateral and is under 7 years old, car loans sometimes have cheaper interest rates than unsecured personal loans.

Line of credit
You can take money out of a bank as you need it, just like a line of credit. In contrast to a conventional personal loan, you only pay interest on the money you have actually withdrawn from the account.

What are the current interest rates?
You should ideally get a personal loan with the lowest feasible interest rate so that you can focus on repaying the money you borrowed rather than paying extra interest. The interest rate will be determined by the type of loan. A loan secured by an asset typically has a lower interest rate than an unsecured loan.

View our current personal loan interest rates to see how we stack up against the competition. 

Last but not least, you can seek complete assistance for low-interest rates on personal loans at Oyster Loan. They have been in business for many years and help to escalate the loan sanction process.