Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk.
Representative Example: Amount of credit: £550 for 7 months at £122.43 per month. Total repayment of £857.02. Interest: £307.02. Interest rate: 150% pa (fixed). 313.1% APR Representative.

Personal Loans

At its most basic level, a personal loan is money borrowed from a lender for personal (rather than business) use, that’s to be repaid (with interest) in the future. For many, the need for a personal loan can come in an emergency, such as a tree branch breaking the roof, a flooded cellar or a broken-down vehicle. For others, a personal loan may be needed for planned repairs, debt consolidation or medical expenses. Even mortgages and car loans fall into the category of personal loans.

Common Uses for Personal Loans

Debt Consolidation

Those with several credit card balances can choose to pay them all off with a personal loan in order to have a convenient single monthly payment. They may also be able to get a lower APR, enabling them to pay off the debt faster.

Unexpected Expenses

When you have unexpected expenses like heavy medical bills or expensive car repairs, personal loans may ease the burden of financial emergencies.

Home Improvement

Instead of using the equity in your home to fund home improvement projects, personal loans are another option to get the funds you need.

Popular Types of Personal Loans

Instalment Loan

  • A lump sum is borrowed upfront with an agreed upon amount of time to pay it back.
  • That period of time is typically 6 months – 5 years, but can be longer depending on the size of the loan.
  • The minimum amounts are typically higher than other loan types.
  • Instalment loans can be secured or unsecured.

Line of Credit

  • Once approved, a credit limit will be established as the maximum amount you can use.
  • Similar to credit cards, the amount of funds you have available replenish as you repay what you’ve borrowed.
  • Lines of credit can be good for everyday expenses, whereas term loans like instalment and payday loans are better for fixed expenses.
  • Lines of credit may be secured or unsecured.

Payday Loan

  • Payday loans are intended for emergency or unexpected uses.
  • They come with smaller loan amounts and a short repayment window (typically 2 weeks – 3 months).
  • Interest rates of payday loans tend to be high compared to instalment loans and lines of credit.
  • These can be a good option for people that have poor credit or little-to-no credit history.

Applying for a Personal Loan

Once you have chosen the type of loan that is right for you, take some time to research your lending options. Ensure that the lender you choose is legitimate and trustworthy, and that you won’t incur any hidden fees. Once you have determined your lender of choice, familiarise yourself with the lender’s application process and the details of their repayment terms. If you’re concerned that you may not be approved with your lender of choice, be sure to have some backup options. But remember, applying with a number of different lenders could be information that ends up in your credit history.

What Does On Stride Financial Offer?

On Stride Financial offers personal instalment loans of £150 – £5,000, repayable over terms of 6 months – 3 years. Our loans have no hidden fees, and you can check your eligibility before completing your application. That way you can see what you qualify for before any impact to your credit report is made. To apply, you just need to meet the following minimum requirements:

Be at least 18 years old

Be a resident of the UK

Have a regular income

Have a valid UK bank account with an active debit card

If you meet the minimum requirements and you’re looking for a personal loan in the UK, go ahead and apply with On Stride Financial today! If approved, you can receive your money the same day as approval.

Why Choose On Stride Financial?

Led by a team with years of experience and leadership in the UK financial services industry, we believe everyone should have access to straightforward and trustworthy credit. Our mission is to help hardworking people improve their lives and fulfil their financial responsibilities by offering open and honest loan terms. With On Stride Financial, you’ll always know what you’re getting. Should you have any questions, our top-notch customer support team is there for you every step of the way.

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