If you’re thinking about applying for a personal loan, it’s important to consider your options carefully before taking the plunge.
In this guide, we explain all you need to know about the application process, including what to watch out for, to help increase your chances of getting accepted.
What is a personal loan?
A personal loan allows you to borrow a fixed amount of money over a fixed term. You can typically borrow over a term of between one and five years, although in some cases, you may be able to borrow for seven years or longer.
You will usually be given the option of borrowing a sum of between £1,000 and £15,000, with some providers offering larger loan amounts of up to £25,000.
Personal loans are also known as unsecured loans as, unlike secured loans, you do not have to use an asset such as your home as