When you are considering taking out a loan, the Post Office is usually not the first thing that will come to mind. However, the institution has now veered away from its customary focus on mail and has expended its range of products and services. Today, the Post Office offers personal loans that can be considered as a more flexible alternative to loans offered by traditional lending institutions.
While regular office loans are usually offered to those with high-paying and steady jobs, the Post Office accepts loan applicants under more lenient conditions. To qualify for a Post Office loan, you must have an annual income of at least £8000, and a resident of the UK for the last 3 years. This means you can avail of a loan even if you only have a part time job.
Loan amounts range between £2000 to £25,000, and payable over 1 to 7 years. Fixed interest rates apply, so you don’t have to worry about Bank of England’s sudden interest hikes. Representative APR of 7.4% applies to loans from £7500 to £14,999. If you intend to borrow less than £7500 or at least £15,000, expect an APR of 8.14%, while 14.9% APR is applicable for loans amounting to £2000 to £4,999.
Instant decisions are usually made online, but it can sometimes take as long as 4 working days. One of the most attractive features of the loan the option to take a repayment holiday. You can select your payment holiday months when applying for the loan. You can schedule the holiday months in time for Christmas or other holidays when you expect to incur big expenses. Early repayments are allowed, subject to early repayment charges.