Lloyds Bank Loans

Lloyds Bank personal loans

Lloyds Bank loan rates

Interest rates on Lloyds Bank loans are fixed throughout the term, so they won’t change while you’re repaying your loan. Your interest rate is decided using your personal financial circumstances.

Lenders such as Lloyds will advertise a representative annual percentage rate (APR). This includes interest and standard fees or charges that you may have to pay when you borrow.

A representative APR is illustrative and reflects the rate (or lower) that at least 51% of successful applicants will receive. You can use representative APR to compare how much it could cost to borrow from different lenders.

However, the personalised APR you get if you apply could be higher or lower than this. It’s worth bearing in mind that 49% of successful applicants could be offered an APR at a higher rate.

You can log into Lloyds internet banking to get a personalised quote including an interest rate based on your specific circumstances.

Pros and cons of Lloyds Bank loans

here are a few advantages and disadvantages to bear in mind if you are considering taking a Lloyds bank loan.

Pros

• You can currently borrow between £1,000 and £50,000.
• Instant decision when applying online.
• Joint loans are available if you’re eligible.
• You can make overpayments.

Cons

• You can only apply if you are an existing Lloyds customer.
• You may be charged up to 58 days’ interest for early settlement.
• Secured loans are not available.

How do Lloyds Bank loans work?

With a Lloyds unsecured loan, you can borrow between £1,000 and £50,000 and repay this (plus interest) over a fixed term. Loan terms are between one and seven years, agreed when you take out your loan.

You make fixed monthly repayments through direct debit. You can also make extra repayments each month if you choose, though you may have to pay up to 58 days’ extra interest if you repay your whole loan early.

Can I make overpayments on a Lloyds Bank loan?

Yes, you can make overpayments on a Lloyds loan. This may reduce the interest you pay overall and could shorten the term of your loan.

However, overpayments do not replace your monthly repayments. These will still be taken by direct debit on the usual day, so it’s worth considering whether you can afford to overpay.

You can make extra payments online, over the phone, in branches, or by bank transfer.

It’s also possible to pay off your whole loan early. You should contact Lloyds Bank to get a quote for early settlement, so you know how much it will cost you. You could be charged up to 58 days’ interest for early settlement.

Can I borrow more on a Lloyds Bank loan?

Yes, you can borrow more on a Lloyds loan, provided that you have an unsecured loan solely in your name and provided your financial circumstances allow it. You can’t borrow more on a joint loan.

Similarly to when you initially apply for a loan, you must have a Lloyds current account that is at least a month old to be eligible to borrow more.

You can borrow between £1,000 to £50,000 in addition to your existing borrowing, so long as you don’t borrow more than £50,000 in total.

There are two ways to borrow more: replacing your current loan or applying for an additional separate loan.

Replace your current loan

You could take out a new loan that combines your existing loan and the extra amount you want to borrow. You would then have one monthly repayment, and could get a new loan term and interest rate.

Terms could be longer and interest rates higher than on your existing loan. You may also be charged up to 58 days’ interest for settling your existing loan early.

Apply for another loan

You could take out a new, separate loan that is paid back alongside your existing borrowing. Each loan would have its own interest rate, term and monthly repayments.

How to apply for a loan from Lloyds Bank

Existing Lloyds customers can get an instant quote through Internet Banking. This will show how much a loan could cost you, as well as the likelihood of you being approved.

If you choose to move forward with a loan after receiving this quote, you can apply online. You should receive an instant decision.

It is also possible to apply in a branch or over the phone.

How long does it take to get a Lloyds Bank loan?

If you apply, you could get your money immediately if you’re approved between 9am and 8:30pm.

If your application is approved outside these times, you can expect your money to reach your account by 9am the next working day.