A personal loan is borrowing a sum of money from a financial institution for personal use. Individuals may use the money for almost anything. For example you can sue the money to go on vacation, a car, home improvement or bill consolidation. The three providers we have chosen for personal loans are Tesco bank, Barclays and Santander. We are going to identify the advantages and the disadvantages of which one to choose and why. Tesco Bank – Tesco have a low rate of 5.2% APR on loans from £7,000 to £15,000. They have a fixed rate for the length of your personal loan also there are no set up charges. You can also have a fixed monthly payment on the date you want to be and the date it best suits you. Tesco don’t have any disadvantages however there is one which is that you will have to pay £12 each time a loan repayment is not made on time. The advantages of using Tesco are that they have a low rate and also there are not set up fees. The other advantage is that it is not complicated and it is easier to understand which will make it easier for customers to choose this product. Barclays – The second provider I am going to be talking about is Barclays. This provider have a rate from 5.7% APR on a loan of £9,300 and you can apply for almost any reason. The advantages of using this provider is that you can get the money within three hours also if you find a cheaper loan than them they will match it and give you £50 on top. However Barclays do have more disadvantages than advantages which are that not everyone can apply on the people that have a good history. The other disadvantage is that you will have to have a Barclay’s current account for over 12 months, which means you need to have a current account with them for a year. The last disadvantage is that you will have to pay £1000 into your account each month. Santander – The last provider I am going to be talking about is Santander. They have a rate from 7.1% APR on loans between £5000 and £7,500....
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