A personal loan is a convenient way to fund a major purchase such as a new car, make home improvements or to consolidate outstanding debts. However, borrowing for certain purposes (for example, for business or investments) is excluded. Barclays offer their customers both secured and unsecured personal loans.
Although a secured personal loan (using collateral such as a home) might have a more attractive interest rate and lower payments overall, your home could be at risk if you default on the monthly repayments.
Features of the Barclays Personal Loan
Barclays personal loans are quite flexible so applicants can choose the amount they wish to borrow (from £1,000 up to £50,000) and the loan term (from 2-5 years). Although they quote a representative APR of 5.5%, this isn’t necessarily the rate that applicants will pay. For instance, while 20.9% APR is representative on loans of £1,000 – £4,999, you may apply £25,100 – £50,000 along with the 7.3% APR.
The APR on the loan will depend on customers personal circumstances (such as your credit score, income and the amount they wish to borrow) and could reach up to a maximum of 20.9%. If an applicant borrowed £15,000 with an APR of 5.5% over a loan term of 5 years, their monthly repayments would be £285.59, and they would end up paying £17,135.40 overall.
How to apply for Loan
Customers should be 18 or over and be a British resident. They can apply at their local Barclays branch, phone (Monday-Sunday: 8am-9pm) or complete their application online. All would be borrowers undergo an affordability check (including with a credit reference agency). Once the loan has been approved, funds are available almost immediately. You need to register Barclays online or mobile banking to get your personal loan.
Apart from their flexibility, these loans have a number of unique features. Barclays customers can check their provisional loan limit without going through the application procedure. The benefit of this is that it does not leave a footprint on their credit file. Barclays also offer a price guarantee so that if applicants find an equivalent loan at a lower overall cost within 30 days of signing the loan agreement, they will match this lower price and reduce their monthly repayments accordingly.
Realizing that sometimes our financial planning does not always go according to plan, the bank also offers a top-up option. This enables customers to increase the amount they have borrowed without having paid off all of the original sum first.