M&S Bank launches top rate 2.8 percent lb7,400 personal bank loan

M&S BANK has begun offering rates as little as 2.8 per cent on unsecured loans of lb7,500 or more taken out over one to 3 years.

The rates are a joint best buy with online bank Cahoot, and means individuals who borrow lb7,500 over Three years find yourself paying roughly lb7,824 after repayments of lb217.

Meanwhile, borrowers taking out loans on the extended period of time – four to seven years – will pay interest of 2.9 per cent.

The deals are available to non-M&S Bank customers, and borrowers have the option to defer repayments for 3 months.

But applicants must earn at least lb10,000 each year, and anybody who doesn't have a perfect credit rating might be offered better pay.

"Unsecured personal loans are a good choice for consumers looking to consolidate the money they owe into one manageable monthly repayment and provides them with a set date regarding once the loan will be repaid," Rachel Springall, finance expert at Moneyfacts told The Sun.

"These types of loans are also useful for cash strapped borrowers seeking to possess a wedding or purchase high upfront costed products which they'd otherwise not afford – or if they do not want to use up their emergency fund.

"The M&S loan particularly allows consumers to defer your loan payments for three months, which is a good safety net for borrowers who require some time before they start to make repayments.

"The very best loan does get down to price, there is nothing incentive to go to your existing bank branch for just one whenever you might get a much better deal online," Rachel added.

Over three years, Cahoot, a part of Santander, matches M&S in price for a lb7,500 loan.

While over 5 years, Cahoot is cheaper on its 2.8 per cent rate, when compared with M&S's 2.9 per cent.

If you'd prefer to apply for a loan, we'd advise you to first complete an eligibility determine whether it's likely that you'll be authorized at the marketed rate.

If the probability is high, you can apply with full confidence but when they aren't that great, you are able to look elsewhere without any harm done.

Or if you're not even sure whether an unsecured loan or balance transfer card is right for you, you need to find out about their pros and cons.

Household debt hit record high levels last year, with the average household now lb15,400 in the red.

If you've found yourself in many debt after Christmas, listed here are nine easy steps to pay off it before the end of this month.

You can take years off your credit card balance by increasing payments by just lb1 a day.