All Purpose Loans offers low interest loans if you are looking to borrow up to £100,000. With rates starting from just 3% APR, all you need to do is fill in our online application form and you will receive an instant decision. You will be presented with a list of competitive options based on your loan requirements and if you are successful, you can receive funds within 24 hours.
Your loan is made up of interest which is a percentage of the overall loan amount. The interest is charged as a way for lenders to calculate risk and make a profit on the money that they lend to you.
Your loan will be made up of interest (any fees) and capital (the loan amount). The interest rate will vary depending on your risk to the lender – so if you are low risk, you will have a low interest rate, and if you are a higher risk, then you will pay a higher interest rate.
Low interest loans usually fall under personal loans and are unsecured, so you do not have to use anything as collateral and your eligibility is based on your income and affordability.
Secured loans can also provide low interest loans, such as mortgages and car loans, however to be eligible you must use something valuable as collateral (such as your house or car) and you risk losing this if you cannot keep up with payments.
Good credit – the lowest rate loans are usually reserved for those individuals with good credit ratings. If you have built up a good credit score over the years, this demonstrates that you are a safe and reliable person to lend to and are therefore a low risk for lenders. This means that they can offer you a low interest loan because they feel confident that you will repay on time.
Stable income – if you have a stable income through your work, it is a good trust signal for lenders because you have a regular income that can be used to pay off your monthly repayments. If you are unemployed, this could make it harder for you to get the loan you need.
Low debt-to-loan ratio – although you may have a good credit score, you could have a high debt-to-loan ratio, which means that you have a lot of credit cards, loan payments and other bills to pay each month. So if the lender determines that your disposable income is very limited, you could be a risk to lend to. However, if you have a low debt-to-loan ratio, you could be eligible for a loan with low interest.
Flexible loan terms – finding loans with flexible terms can help you keep the overall loan costs down. For instance, being able to repay your loan early can help you save on the amount of interest that you accrue. For instance, if you are borrowing £1,000, it will cost more to borrow it for 5 years, than it would for just 1 or 2 years.
Compare rates – Loans with low APR are available if you compare rates. Every lender in the UK offers different rates and scores their customers differently, so using the impartial comparison service provided by All Purpose Loans can help you get the lowest rate possible at the terms that suit you.
Low interest loans are usually available for customers with the best credit ratings and those that present the lowest risk to lenders. By comparison, if you have a medium or bad credit score, you may be offered a higher interest rate for your loan to offset the potential risk of defaulting.
Get started by clicking on the apply now button below and you will be taken to our online application form. You can complete your details in less than 2 minutes and receive an instant quote based on your loan requirements.
At All Purpose Loans, we work with the whole of the market, so you can get the best rates and compare over 50 lenders at once, rather than apply individually with each lender. We offer a pre-approved loan application, so you can get real-time quotes based on decisions from real lenders. If you proceed, you can get funds transferred to your bank account within 24 hours.