Personal Unsecured Loan Accounts

Best Buy Table

Publication Date: 5th^nd October 2011

Subjects: Best buy, comparison, personal, unsecured, loan, accounts

Personal loans for individuals provided on an unsecured basis (no security required from personal belongings/assets). Full details, terms and conditions can be found on the lenders websites.

Remember that any rates quoted by lenders can vary due to credit rating. See our article for more details of credit scoring and credit rating, and how to check your current standing.

If you think you might repay your loan early consider Zopa or Yorkshire Bank, as although they are slightly more expensive they offer either no early redemption penalties, which can be as much as 58 days interest.

Small Loans up to £1,000

Whatever the banks are currently saying at the present moment about credit being available in the market its certainly true to say that borrowing continues to cost more. One of our previous best buys ASDA no longer offer personal loans, and all credit from commercial organisations and banks for sums below £1,000 has been withdrawn. Credit Unions do however specialise in lending at this level - see more in our special Credit Union feature. Another alternative would be to use a credit card - consider an interest free purchase or balance transfer card if your credit rating is strong - it could save you a small fortune. Do call us if you would like to discuss your options.

Loans between £1,000 and £4,999

Again not masses of competition in this market although Sainsburys Bank (A Nectar Card is required to get the best rates) and Alliance and Leicester / Santander offer some of the better rates on loans over periods of 1 to 5 years. Its a fixed rate facility which is good for budgeting, there are no arrangement fees. If you are looking for more than £2,000 also look at the Post Office. Do also consider an interest free purchase credit card if your credit rating is strong enough.

Loans between £5,000 and £7,499

Sainsburys Bank are still at the fore again offering loans with a range of repayment periods. They also offer a repayment holiday at the start of the loan, along with fixed rates and no fees, but once again a Nectar Card is required

Also competitive in this market are the Post Office and Alliance and Leicester.

Loans between £7,500 - £15,000

At this stage Alliance and Leicester tend to have the best rates - and there are no restrictions on who can apply. Marks and Spencer (you do need to be a homeowner or over 30 to apply) and Nationwide are also competitive. Finally Sainsburys Bank are still there or thereabouts. A Nectar Card is still required to access the best rates.

Also in this arena, and for larger loans up to £25,000 its worth considering either the Yorkshire Bank or Clydesdale Bank who offer loans up to 7 years in term but also with no early redemption fee - which can be a real money saver if you intend to repay the loan early. It also makes it very attractive if you are planning a short term loan! To apply online you need to be an existing customer, otherwise you will have to visit one of their branches.

Please note that Nationwide also has some very competitive rates, but these only apply to their own customers. If you have a Nationwide current account visit their website as they can be cheaper in some instances (at publication date this applied for loans between £7,500 and £15,000)

moneymaxim - making money go further

moneymaxim always recommend you take independent financial advice before acting on any article.