Lloyds Bank offers a comprehensive range of financial products and services, including personal loans.
About Lloyds Bank
Lloyds Bank began as Taylors & Lloyds in Birmingham way back in 1765. For its first hundred years, it operated from a single office, but in the 1860s Lloyds began to expand rapidly. By the mid-1990s, Lloyds had absorbed over 200 banks.
Today, Lloyds Bank is part of the Lloyds Banking Group whose main subsidiaries include Halifax and Bank of Scotland. Lloyds Bank offers a wide selection of financial products and services, including fixed-rate unsecured, or personal, loans.
Lloyds Bank Personal Loans
- Borrow £1,000 – £50,000
- Loan repayment terms 1-7 years
- 9% APR representative
- Instant online decision on your loan application
- Personalised quote – see how much you might be able to borrow with a ‘soft search’ which won’t affect your credit rating
- Pay a fixed amount each month
- Flexible repayment options – make additional payments with no charge
- Repayment holidays – apply for two repayment holidays a year
- Funds in your account immediately or the following day
- Manage your personal loan online, in-branch or over the phone
You could borrow £10,000, over 48 months, with 48 monthly repayments of £225.04. The total amount repayable will be £10,801.92. Representative 3.9% APR, annual interest rate (fixed) 3.83%.
This representative APR applies to loans £7,500 – £25,000 over 1 to 5 years. Other loan amounts and terms are available at different rates. The rate you’ll be given, and amount you may borrow, is dependent on your own personal circumstances and may differ from the representative APR.
What Is A Personal Loan?
A personal loan is based on your creditworthiness. It is also known as an ‘unsecured loan’ as the loan is not ‘secured’ against an asset you own, for example, your home or your car.
As such, the amount you can borrow and the interest rate applied depends on your income, personal circumstances and your ability to repay the loan. A personal loan is repaid over a fixed term at a fixed APR.
APR is an abbreviation of Annual Percentage Rate. APR is a standardised way for lenders to show the yearly cost of borrowing money. It includes the interest rate and other charges you have to pay (for example any arrangement fee). All lenders have to calculate the APR of their products in the same way and must tell you how much the APR is before you sign an agreement. APR can, therefore, be a useful tool when comparing credit products.
One thing to bear in mind is the advertised APR is a representative APR.
Representative APR means over half the people who have taken a loan of a particular size from that lender have been given that rate. This means 51% of people have been given the advertised rate, but 49% of people could be paying more.
You will be given your own personal APR for your Lloyds Personal Loan, based on factors like how much you want to borrow, over how long, as well as your financial situation and credit rating. Your personal APR may differ from the representative APR advertised.
What Can I Use A Personal Loan For?
A personal loan is just that – personal. You can apply for a personal loan to help cover a variety of costs, but should only do so if you are confident you can meet the repayment terms. You could apply to borrow money for a big life event you’re planning – like your dream wedding – or replacing an outdated kitchen, for example.
Some of the main purposes for a personal loan are:
- Buying a New Car
- Home improvements
- Debt consolidation
- Topping-up an existing loan
You will be asked what the loan is for when you apply. While you can use your personal loan for most things, there are a few exceptions. A personal loan is not intended to cover day-to-day living expenses or property purchase, for example.
How Much Can I Borrow?
Lloyds Bank offers personal loans from £1,000 up to £50,000. The amount you may be able to borrow depends on your individual circumstances – you’ll be asked about your monthly income and will answer questions about your current financial situation.
How Long Will It Take To Repay?
The loan repayment term (the length of time you can take to repay your loan) depends on the loan amount and what it will be used for. The loan repayment term for a Lloyds Bank personal loan is from 1 to 7 years.
You can get an idea how much your repayments might be, over what term, using the Lloyds Bank Personal Loan calculator. You’ll need to log in to your Internet Banking to get a personalised quote.
You can settle your loan early, but will be charged up to 58 days’ interest.
I Already Have A Lloyds Bank Personal Loan
If you already have an existing Lloyds Bank Personal Loan, you may still be able to borrow more. You’ll have the option to replace your old loan with a new, larger loan or take out a second loan.
It’s important to consider your options carefully as the two options have different implications.
Combining your loans: if you choose to combine your old loan and your new loan, you’ll pay one monthly repayment. The new, larger loan may, however, be charged at a higher interest rate than your old loan and you may be charged to settle your existing loan early (up to 58 days’ interest).
Opening a separate loan: If you choose to take out a new loan separately, each loan will have its own rate, term and monthly repayment.
To apply for a Lloyds Bank Personal Loan, you must be:
- a UK resident
- a Lloyds Bank current account holder for at least 1 month
How To Apply
You can apply for a Lloyds Bank Personal Loan online, in-branch or over the phone. If you’re registered for Internet Banking, you can log in for a personalised quote to see how much you could borrow, over what term, and how much your monthly repayments would be.
This is a ‘soft search’ meaning you can get a quote without impacting your credit rating. You will be able to see this search if you check your credit file, but lenders won’t.
When you’re ready to apply, you’ll need to fill out your personal details along with information about your monthly net income, regular expenses like rent or mortgage payments, your address history for the last 3 years and any outstanding balances on existing credit cards, store cards or loans.
The information you provide here will be used to perform a credit check – this will leave a footprint on your credit file which lenders will be able to see. You’ll then be given a decision on your loan application. The whole process should take around 5-10 minutes.
What Happens Next?
If your loan application is accepted – you’ll usually receive funds into your bank account the same day if your application is accepted between 9am and 8.30pm, or within 24 hours if you apply outside these times.
If your loan application is declined – you may have tried to borrow too much over too short a period or your credit history may not be good enough for the amount you’ve asked to borrow. You can check your credit report to find out where you stand; there are lots of things you can do to improve your credit rating.
Loan Repayment Holidays
Lloyds Bank Personal Loans have a feature called a ‘loan repayment holiday’. You can apply for up to two one-month repayment holidays every year, throughout the term of your loan.
The holidays give you a break from making the monthly repayment (handy if you’ve got other expenses upcoming like a birthday or MOT) but you should note that, each time you take a repayment holiday, your original loan repayment term will be extended. You’ll also pay more interest overall.
You can request a loan repayment holiday at any time, as long as you:
- have made at least one repayment on your loan
- have a Direct Debit in place
- are up-to-date with your loan repayments
- are not in the process of making a loan protection insurance claim
- have at least 30 days remaining on your loan term
- inform Lloyds Bank at least 5 days before your next repayment is due
Repayment holidays can be taken twice in a rolling twelve-month period, but can’t be taken in consecutive months. You can request a loan repayment holiday online, in-branch or over the phone. You’ll be informed of the additional interest before your repayment holiday request is finalised.
Lloyds Bank Personal Loans give you flexible repayment options, allowing you to make additional repayments whenever you want to with no charge. While the additional payments are at no extra charge, it’s worth noting that if you pay off your loan early you may still be charged up to 58 days’ interest for early settlement.
- Get a personalised quote – find out if you’re likely to be approved without affecting your credit rating
- 9% APR representative
- Apply online, in-branch or over the phone
- You can usually get a decision in minutes
- You could have the funds the same or next day
- Fixed monthly repayments
- Manage your loan online
- Flexible repayments – make additional payments with no charge
- Apply to take a loan repayment holiday
- You can repay your loan early, but you will be charged
- Your personal APR may be higher than the representative APR
- Applying (and being accepted) is a fast process – make sure you’ve considered whether a personal loan is the most suitable option for your borrowing needs and you can afford the repayments
- Taking a loan repayment holiday will increase the overall interest you’ll pay and extend the term of the loan
- You will be charged if you repay your loan early. You’ll pay up to 58 days’ interest (or the remaining number of days interest if there are fewer than 58 days left in the loan term) to close the loan early.
- Website is difficult to navigate
What if I miss a repayment?
If you miss a monthly repayment you will be charged £25. If you persistently pay late, Lloyds Bank may request that you pay the remaining balance of the loan in full.
How can I improve my credit rating?
Every lender has its own criteria when they decide whether or not to give you credit, but generally, these things will improve your credit rating:
- Paying bills on time
- Paying for insurance upfront, rather than monthly
- Being in the same job for a long time
- Owning your own home
- Living at the same address for more than a year
- Keeping your address records up-to-date
- Being on the electoral roll
- Cancelling unused credit and store cards
- Reducing your debts with savings