But before taking out a personal loan, get to know how they work and what the charges are. This way you can make sure it’s the right option for you and avoid any unexpected costs down the line.
Here are some of the key elements of a personal loan:
you can spread your repayments over one to eight years, but the longer you take to pay back your loan, the more interest you'll have to pay
Explore: Quick guide to personal loans
Here are some of the key things to consider before taking out a personal loan:
This is an administration fee some lenders charge for arranging your personal loan.
If you miss a repayment under your loan agreement, you may be charged interest on the overdue amount, as well as any administration fees from the lender.
Some lenders may charge a fee if you pay back more than your fixed monthly repayment amount.
When you take out a personal loan, factor in the total loan costs – the amount borrowed plus interest accrued over the repayment period.
Your loan agreement will detail how much you have to pay back and when. This is usually a fixed minimum amount per month.