What is a Loan Amount?
A loan amount is the amount of money you wish to borrow from the provider. This amount could be used to purchase a new car as an example.
What is a Loan Term?
A loan term is the period of time that you wish to pay the lender back over. If you loaned £1200 and wished to pay the loan over a 12 month (1 year) loan term period with 0% APR - you would be required to pay the lender £100 a month in order to pay the loan off in the required loan term period.
What is Payment Protection Insurance?
Payment Protection Insurance otherwise known as PPI in shortform is an insurance which covers your loan. There are various levels of cover that can make sure you will be alright if you lost your job, took ill and so forth. You can be safe in the knowledge that you need not worry. Our system can factor in an estimate of PPI but make sure that you check what your actual loan provider is offering.
Often some opt out of this option in order to save money on the monthly payments therefore making the loan far more affordable. But you then have the worry of what if?
What is APR?
APR is the typical percentage that is added on to your loan. This is the charge for your loan. All interest is calculated differently between each provider. We aim to give you an estimation which will be extremely close. Make sure to check the final quote on the loan providers website for 'exact' payment amounts.
What is an Early Repayment Penalty?
Some providers allow you to pay off your loan early. This allows you to pay off your loan up to the point where you have had the loan. For example you had taken out a £5000 loan over 5 years. You may decide to pay it off after 2 years in which case you only pay for the interest up to the 2 years without having to pay an additional penalty. This is a good money saving option to look out for.
Is an Adverse Credit history considered?
Some providers will not consider a loan application from an applicant who has an adverse credit history. They look upon an adverse credit history as a higher risk and may reject the application out right. There are however loan providers who specialise in loans for those with an adverse credit history.
Minimum Age
To apply for a loan you must meet the minimum age requirements which are stated.
Monthly Repayment
This is the total amount you will pay to the loan provider for the period of months stated. This can be with or without Payment Protection Insurance (PPI) which will cover you in case of losing your job or critical illness.
Total Credit Charge
The Total Credit Charge is the extra amount you will pay back to the loan provider. This is their fee for providing you with the loan. This can be with or without Payment Protection Insurance (PPI) which will cover you in case of losing your job or critical illness.
Total Repaid
The Total Repaid is the final amount you will have paid to the loan provider upon completing your final monthly payment for the term stated. This can be with or without Payment Protection Insurance (PPI) which will cover you in case of losing your job or critical illness.
Glossary of Loan Terms