Personal loans are loans for a specific amount of money, usually between €2,500 and €25,000, taken out over a certain number of years (usually 3 ,4 or 5 years)
The main providers of personal loans are banks, building societies, finance companies and credit unions. You can use a personal loan for both short and long-term borrowing, such as paying for holidays, education fees, cars, home improvements or weddings.
The minimum loan is usually about €2,500, although credit unions will generally give you a smaller loan if you need it.
Personal Loans in Ireland can be obtained with interest rates from around 10% APR fixed.
The best APR over 5 years (Autumn 2019) on a €20000 loan is currently available from Avantcard at 6.1 %
You can check a range of Best Buys on loans, mortgages and savings accounts at Money Guide Ireland
When applying for a loan, each lender may determine your eligibility for a loan using a criteria such as your credit rating, credit scoring or home ownership.
Tips :
- Make sure you ask what your repayments will be over a number of different terms. On a fixed rate loan you will be charged a penalty for paying the loan off early.
- Variable rate loans are more flexible but the repayment amounts may rise or fall during the course of the loan.
With a fixed rate loan – your repayments stay the same but you will usually have to pay a fee if you want to pay your loan off early. - Don’t use personal loans to finance your day-to-day living expenses – adjust your budget instead.
- A personal loan can work out cheaper than an overdraft. Overdraft rates at some banks can be as high as 20% .
Credit Card interest rates can be as high as 27% – so converting credit card debt to a loan will reduce interest costs. - Don’t borrow more than you can afford. If your budget is too tight, you will have to borrow again or use a credit card just to meet your everyday needs.
- Don’t forget to try your local Credit Union – some of them are apparently offering rates as low as 7 or 8% APR. You will need to have a savings account with them to qualify for a loan.
These are some of the financial institutions offering personal loans in Ireland:
AIB , Bank of Ireland , Credit Unions, Permanent TSB , Ulster Bank
When you take out a loan, you might be offered payment protection insurance (PPI) . This is not compulsory – and there have been many examples in the UK and in Ireland where PPI has been forced on people when they didn’t need it or didn’t want it .
See more here about PPI Refund Claims