It is interesting to see that unsecured personal loans are becoming cheaper again. In fact many of them are at levels not seen since November 2008.
Lenders want to lend, once again and competition between them is getting fiercer which is great news for borrowers. The more competition for your business, the better the deal you could get.
With one important proviso. You need an unblemished credit history to benefit from the most competitive rates. There is still a lot of risk adversity out there, even though the loans market is definitely healing itself since the shock of the credit crunch.
But it’s only unsecured loans between £7,500 and £15,000 that are attracting the best rates at the moment. These must be the most profitable for the lenders as borrowing smaller amounts is met with rising, not falling interest rates.
So it’s good to see that the loans market is returning to a degree of normality again, as this shows that the financial services industry as a whole is finally recovering from the credit crunch.
It is important to remember, though, that loan repayments still have to be paid each month so even if it is now slightly more easy to borrow money, you must ensure that you can afford to meet the loan commitments.