The cheapest personal loans

Posted by & filed under Personal Loans.

Theres a price war going on so heres a round-up of the best personal loans on the market right now.

If you want to borrow a larger sum of money, a personal loan is a good option for many people. The good news is there is loads of competition in the personal loan market right now and this means rates on the top loans are falling.

Heres our guide to the cheapest rates right now.

A reminder of how personal loans work

These loans are normally for one to five years and arent secured against your home or any other asset.

Its quite a flexible market and you can typically choose between a small loan of pound;5,000-pound;7,499, a medium loan of pound;7,500-pound;15,000, or a large loan of more than pound;15,000 although the cheapest rates can be found in the medium range.

Medium loans (pound;7,500-pound;15,000)

The best rate available on medium-sized loans of 4.1% is now offered by Hitachi Personal Finance, the financial arm of the well-known electronics giant. You can repay it in between two to five years.

If you prefer, you can get a rate of 4.2% from Sainsburys Bank, but this has to be repaid within three years. If you want to pay it off over up to five years, the rate increases to 4.3%. Cahoot offers a rate of 4.2% that can be paid off over up to five years.

Here are the best buys using the example of borrowing pound;10,000 over five years.