Personal loans: The cheapest way to borrow £10,000
The personal loan market has become increasingly competitive during 2012 helped by base rate remaining at its lowest ever level of 0.50 per cent.
Average rates have fallen slightly and there are several deals that beat the best personal loan available at the start of the year which was Marks & Spencer’s personal loan at 6.0 per cent for borrowing between £7,500 and £15,000.
Bearing in mind the higher funding costs of most financial institutions because of the ongoing euro debt crisis, it is perhaps surprising that there are now five loans that beat the M&S deal.
So, if you need some extra funds to help with the purchase of a car, a wedding or a holiday, then now could be a good time to take advantage.
Rates for personal loans between £7,500 and £15,000 are the lowest they have been for five years.
However, if you need a smaller loan you will pay a higher rate. The best deals on personal loans of £5,000 are set at 7.5 per cent.
Myfinances.co.uk presents the ten best personal loan deals for borrowers looking for a loan of £10,000 to be repaid over five years. All rates are subject to change and most of these best rates are dependent on having an acceptable credit rating
| Bank/Building society | APR% | Monthly Repayment (£) | Total Repayment | Term (years) | Redemption penalty |
|---|---|---|---|---|---|
| Derbyshire Building Society | 5.9 | 192.15 | 1-5 | Yes | |
| Sainsbury's Bank - 1 | 5.9 | 192.15 | 4-5 | Yes | |
| Yorkshire Bank - 5 | 5.9 | 192.37 | 1-7 | Yes | |
| Clydesdale Bank | 5.9 | 192.37 | 1-5 | Yes | |
| Platinum Loans - 2 | 5.9 | 192.15 | 1-5 | Yes | |
| Marks & Spencer - 6 | 6.0 | 192.58 | 1-7 | Yes | |
| Tesco Bank | 6.0 | 192.59 | 1-5 | Yes | |
| Santander | 6.7 | 195.67 | 1-5 | Yes | |
| Nationwide - 4 | 6.8 | 196.15 | 1-5 | Yes | |
| Sainsbury's Shopper Reward Loan - 3 | 6.9 | 196.65 | 1-5 | Yes |
1 - Only available to Nectar card holders.
2 - Only available from Moneysupermarket.com
3 - Only available to Nectar card holders and you receive a £100 Sainsbury's gift card.
4 - Rate of 6.3 per cent available to Nationwide Flex account customers.
5 - Applicants must be aged 24 - 74.
6 - Must be aged 30 or over or a homeowner.
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