Sunday, 30 March 2008

The price of small personal loans has spiked again due to a recent credit drop although interest levels on larger loans have in fact become less in the last months as stated by a recent study.

The general price of a £1000 unsecured loan has risen by 1.6% since January, making it £27 more costly if paid back over three years according to thisismoney.co.uk.

The standard £2000 loan has risen by 0.8% with the typical £3000 one by 0.5%. In comparison, in the last three months general rates with a £20'000 loan have dropped from 8.1% to 8%.

“The ongoing credit crisis has seen institutions concentrating on getting money in the door and becoming more expensive and selective when lending money out” said Julie Harris of finance data experts, Moneyfacts.

Considerable growth in interest rates within the last twelve months were also mentioned in the report, with a £1000 loan rising by 4.6%, a £2000 loan by 3.9% and a £3000 loan by 3.8%.

Overall, interest rates on loans of £20'000 loan have gone up by more than 1%.

Source: onlyfinance.com