Personal loans

Personal loans are also known as term loans. Banks and building societies offer these loans to customers. These loans are suitable for medium and longer term needs, for example, a car loan or a loan for home improvements. Typical APRs currently range from between 7.5% to 11%. Banks or building societies may also charge other fees and charges. Generally, you pay a fixed amount back every month. If your loan is a variable rate loan you may be able to pay more than this back when you have it. This allows you to pay off the loan sooner. It is not advisable to take out a personal loan to cover day-to-day expenses