Loans
Alliance & Leicester Personal Loans
Our Online Loan Buys *
| Typical APR | Per Mth | ||
|---|---|---|---|
|
8.5% | £203.65 |  |
|
8.6% | £204.10 | |
|
8.6% | £204.10 | |
|
8.7% | £204.55 | |
|
9.1% | £206.15 | |
| * Based on £10000 over 5 years and is not a full search of the whole market | |||
Alliance & Leicester personal loans are among the bank's flagship products. Alliance & Leicester advertise personal loans at highly competitive fixed rates of interest. However, the lowest rates offered are restricted to personal loans starting at £7,500.
A&L's advertised APR (Annual Percentage Rate) is also described as 'typical' which means, by FSA standards, that it must apply to 66% of all accepted personal loan applicants. This means that the headline-grabbing rates you see may not apply to the personal loan you are offered - even if you are borrowing £7,500 or more.
Alliance and Leicester offers unsecured loans from £1,000 and caps borrowing at £20,000 - not £25,000 like many other loan providers. Whatever the size personal loan you're thinking of taking out with A&L , you will need to be over 18 years of age and will need to repay the loan within five years.
If you want to pay your A&L loan off early, you may do so - but depending on when you signed up to the borrowing - it may cost. If you signed on the dotted line before May 2005, the early settlement fee is charged at two months' interest. If you took the loan out after this date, the settlement fee is only one month's interest. But in the event that you borrowed the funds over the minimum12 months, no early repayment fee will apply.
At Alliance & Leicester, the personal loan application process is straightforward. You may apply online, by phone or in a branch and will receive a response within 48 hours. You will need to fill out a comprehensive application form and sign up to a Direct Debit order. If you are accepted for the personal loan, you may choose to receive the funds into either an A&L account, a different bank account or through the post by cheque.
Payment Protection Insurance is available on Alliance & Leicester personal loans, which incorporates £50,000 worth of life cover. However, you may find a standalone PPI policy to be cheaper.
You can review loan products from more than 60 loan providers including the A&L loan on Moneyextra's Loans Comparison tool.
Last updated April 2008
Nothing in this article constitutes investment advice or a recommendation by Moneyextra to invest in any product, or employ any service, mentioned or advertised.