If you are looking for a personal loan, iLoans can help you find the best provider in minutes. We deal with a wide range of online credit providers, all authorised and regulated by the Financial Conduct Authority so we can help you find the best loan and the best lender for your needs.
What is a personal loan?
A personal loan is an amount of money given to an individual person on the basis that the money is paid back over an agreed period of time - usually with interest. It may be secured or unsecured and can be used for a wide variety of purposes. The amount borrowed, the term and the interest rate charged will vary according to the borrower's requirements and the lender's assessment of the risk involved.
Why would I want to take out a personal loan?
There are three main reasons why people take out a personal loan
These are all perfectly valid reasons for contacting iLoans. Some lenders will be more sympathetic to certain credit requirements than others: to make sure your loan application has the very best chance of being successful, we will present your loan application to our panel of lenders for consideration.
They want to buy something
They want to tidy up their finances
They may have a short term cash flow problem
What can I use a personal loan for?
You want to buy something: it might be a car, home improvements or something as essential as school uniform for the children. Personal loans can be used for almost any purchase.
Tidying up finances: Personal loans can also be used for what is known as 'consolidation.' If, for example, you have several loan and credit card payments going out each month, managing them can be difficult. It is easy to miss a payment and potentially damage your credit rating. 'Consolidating' these credit obligations into one arrangement, payable over a fixed term can often save you money - and certainly make managing your finances easier.
Cashflow: Most of us will have experienced short term cash flow problems at some stage in our lives. Any number of factors can cause them and there are millions of people living from one payday to the next. And while a short term loan is not a long term solution to financial problems, it could mean keeping up to date with your payments and not incurring expensive penalties - or getting your car fixed in time to be able to get to work.
How much can I borrow?
How much you can borrow is determined by how much you can comfortably afford to repay. All lenders will check what they call 'affordability' to make sure that the repayments you are committing to are sensible and manageable. Outside that you can borrow almost any amount you want, but note that security will be required for advances in excess of £25,000. The maximum loan iLoans offer is £5,000: the minimum is just £80.00.
How long can I take a loan for?
We can help you find a loan from periods of just 12 weeks up to 5 years. In practice, the average length of our short term loans is around three to six months and with longer term advances averaging 24 months.
How much you repay each month is determined by two things: the amount borrowed and the term of the loan.
Whatever your needs, we can help you find the loan and the term that best suits you.
Which type of personal loan should I choose?
There is no 'best personal loan.' The best loan is the one that is right for you: that gives you the advance you want with manageable payments over a realistic term. That is where our expertise and experience comes into play: we will find you the loan and the lender that best matches exactly what you need.
If you borrow more than £25,000 then the Consumer Credit Act requires that the loan is secured. The normal security is a charge on your house but your car or savings and investments can also be used as security. As you would expect, you would pay a lower rate of interest for a secured loan, as the risk to the lender is significantly less than with an unsecured loan.
Secured borrowing is when you borrow against the value of an asset you own (typically a house or car) with the lender having the power to confiscate your asset if you don't meet your payment obligations. In short, if you don't keep up your repayments, you could lose your home.
Unsecured loans are the most common type of loan. They are usually easy to apply for and decisions can often be made quickly by credit providers if you have a good credit score. Unsecured borrowings are based on the principle of trust and, of course, contractual obligations.
Most people, do not wish to offer security - or they do not have any security to offer. Unsecured loans are typically lower in value and usually less than £10,000 in value.
To approve an unsecured loan, the lender will want to be certain that you can comfortably afford the repayments. Unsecured loans will sometimes carry a higher rate of interest than secured finance.
How can I apply for a personal loan?
Applying for a personal loan with iLoans means completing our quick, straightforward online application. The old days of making an appointment at the bank are long gone. A personal loan application on our system is a simple process and is completely confidential.
What rate of interest will I pay
Interest rates on personal loans vary - and they vary considerably. If you have a steady job, have never missed a payment in your life and can comfortably afford the repayments you will pay a lower rate of interest than someone who may have struggled financially. But the interest rate is not the be-all and end-all of a personal loan. Even a relatively high rate of interest can make sense if it avoids the punitive charges - and damage to your credit rating - involved in an unauthorised overdraft, or missing a scheduled credit card payment.
Can I get a personal loan if I have bad credit?
Everyone has periods of financial difficulty during their life. Sometimes, however hard you try, these can affect your credit rating, leaving you with 'bad credit.'
Does that mean you cannot get credit? No: the interest rate the lender charges will reflect your personal circumstances but a personal loan can still make sense if it allows you to consolidate and simplify your finances, or if it means you avoid costly penalty charges.
Remember - we deal with a wide range of credit providers. However bad your credit, there is a good chance that one of them will look at your application sympathetically.