In the UK, personal loans, also known as unsecured loans, are a popular option for borrowing a fixed amount of money from a lender and paying it back over a set time period with fixed monthly repayments. The lender will charge interest as its fee
for lending the money and the borrower will have to repay both the amount borrowed plus interest. The advantage of personal loans is that you get cash upfront and can spread the cost of a purchase over several months or years.
However, it’s important to compare different finance options and choose the one that best fits your needs and budget. Some of the best buy rates for personal loans can be found by checking the interest rates of different lenders, and it’s also possible to undercut some of these rates by 0.5 percentage points if you’re a Nationwide current account customer. It is important to check your credit score and income before applying for a loan, and also to be aware of the terms and conditions of the loan, the APR, and the repayment schedule.