| Guarantee | Unsecured Loan |
| Age Eligibility | 18 or over |
| Income eligibility | £10000.00 Per Annum |
| Available to | Existing Customers only |
| Credit score | Good |
| Interest Rate | Fixed |
| Amount | £1,000 to £50,000 |
| Payment Term | 1 year to 8 years |
| Representative APR | 9.9% p.a. |
First Direct Personal Loan offers a straightforward borrowing solution with competitive fixed rates and flexible repayment terms. If you’re already a First Direct customer, this loan could be a convenient way to finance your next big purchase, consolidate debt, or manage unexpected expenses.
With borrowing amounts ranging from £1,000 to £50,000 and repayment terms of up to 8 years, it’s designed to suit different financial needs. But is it the right choice for you? Let’s dive into the details.
Why Choose First Direct?
When choosing a personal loan, flexibility, competitive rates, and a hassle-free application process are key. First Direct Personal Loan stands out by offering a straightforward borrowing experience with clear terms and reliable customer service.
Flexible Borrowing Options
First Direct allows you to borrow between £1,000 and £50,000, making it a solid choice whether you need a small loan for unexpected expenses or a larger sum for a major financial commitment. With repayment terms ranging from 1 to 8 years, you can tailor the loan to suit your budget and long-term financial plans.
First Direct Existing Customer Personal Loan
Competitive Fixed Interest Rates
One of its biggest advantages is the competitive fixed interest rate. For loans between £10,000 and £30,000, the representative APR is 5.9%, ensuring predictable monthly repayments. This means no surprises, making budgeting more manageable.
Quick and Convenient Application
Time is money, and First Direct gets that. The application process is fast, with most decisions made instantly. If approved, funds are typically transferred immediately when applying online or through the app, making it a great option for those who need quick access to cash.
No Hidden Fees & Overpayment Flexibility
Nobody likes hidden charges, and First Direct keeps things transparent. There are no upfront fees or penalties for early repayment. If you want to overpay and reduce your overall interest, you have the flexibility to do so at no extra cost.
Exclusive for First Direct Customers
While this loan is only available to existing First Direct customers, this exclusivity comes with benefits. It ensures a smoother process, tailored support, and access to customer service that consistently receives high praise.
Strong Reputation for Customer Service
A good loan isn’t just about numbers; it’s also about support. First Direct is known for its responsive and customer-focused service, giving borrowers peace of mind throughout the loan term.
In summary, First Direct Personal Loan combines flexibility, competitive rates, and excellent service, making it a strong contender for those looking for a reliable borrowing option. Just be sure to assess whether the terms align with your financial goals before applying.
Key Features You Need to Know About First Direct Existing Customer Personal Loan
When considering a personal loan, it’s important to know what you’re signing up for. First Direct Personal Loan is designed for existing customers, offering flexibility, competitive rates, and a straightforward application process.
Borrow between £1,000 and £50,000, making it suitable for anything from small expenses to significant investments. Repayment terms range from 1 to 8 years, allowing you to choose a plan that fits your budget and financial goals.
For loans between £10,000 and £30,000, First Direct offers a representative APR of 5.9%. However, the actual rate may vary depending on your financial profile, with a maximum APR of 18.9%. With fixed interest rates, your monthly repayments remain predictable.
To qualify, you must be at least 18 years old, permanently reside in the UK, and earn a minimum of £10,000 per year before tax. Applicants must also hold a First Direct current account and have a solid credit history with no bankruptcies or Individual Voluntary Arrangements in the last six years.
The loan application can be completed via the First Direct App, online banking, or over the phone. Most applications receive an instant decision, and if approved, funds are typically transferred immediately when applying through digital channels, ensuring fast access to your loan.
First Direct allows borrowers to make overpayments without penalties, meaning you can reduce the total interest paid over the loan’s lifetime if you choose to pay extra.
With no arrangement or setup fees and fixed monthly repayments, this loan is a transparent and manageable borrowing option.
Understanding these key features will help you decide whether First Direct Personal Loan aligns with your financial needs, offering a reliable and flexible borrowing solution.
Is This Personal Loan What You Need? Weigh Up the Pros and Cons
When considering the First Direct Personal Loan, it’s essential to evaluate both its advantages and potential drawbacks to determine if it aligns with your financial needs.
Pros:
- Competitive Interest Rates: For loans between £10,000 and £30,000, First Direct offers a representative APR of 5.9%, which is favourable compared to many other lenders.
- Flexible Loan Amounts and Terms: You can borrow between £1,000 and £50,000, with repayment periods ranging from 1 to 8 years, allowing you to tailor the loan to your specific requirements.
- Quick Access to Funds: Upon approval, funds are typically transferred immediately, especially when applications are made through digital channels, ensuring timely access to your money.
- No Hidden Fees: There are no arrangement or setup fees, and overpayments can be made without penalties, providing flexibility to reduce interest costs.
Cons:
- Exclusive to Existing Customers: The loan is only available to those who hold a First Direct current account, which may limit accessibility for new customers.
- Early Repayment Charges: While overpayments are allowed without penalty, fully repaying the loan early may incur charges, potentially offsetting interest savings.
- Creditworthiness Dependent Rates: The advertised APR is representative; actual rates offered may vary based on individual credit assessments, meaning some applicants could receive higher rates.
- Limited Physical Presence: As an online and telephone-based bank, First Direct lacks physical branches, which might be a drawback for those preferring in-person banking services.
In summary, the First Direct Personal Loan offers competitive rates, flexible terms, and swift fund access, making it a strong contender for existing customers seeking a straightforward borrowing solution. However, potential applicants should consider the exclusivity to account holders and the possibility of early repayment charges. Assessing your personal financial situation and preferences will help determine if this loan meets your specific needs.
You Qualify? Essential Criteria to Apply for First Direct Existing Customer Personal Loan
Thinking about applying for a First Direct Personal Loan? Before moving forward, check if you meet the essential eligibility criteria.
Age and Residency
- Applicants must be at least 18 years old.
- You need to be a permanent resident of the UK.
Income Requirements
- A minimum annual income of £10,000 before tax is required.
- This can include salaries, pensions, or other regular income sources.
Banking Relationship
- The loan is exclusively available to First Direct current account holders.
- If you don’t already have an account, you’ll need to open one before applying.
Credit History
- Applicants should have a clean credit record, with no bankruptcies or Individual Voluntary Arrangements (IVAs) in the past six years.
- A good credit score increases the chances of approval and better interest rates.
Loan Purpose
- The loan can be used for home improvements, debt consolidation, car purchases, and other personal expenses.
- It cannot be used for business purposes, gambling, property purchases, or illegal activities.
Application Process
- Applications can be submitted through the First Direct mobile app, online banking, or by phone.
- The process is quick and straightforward, with most applicants receiving an instant decision.
- Be ready to provide proof of income, such as payslips or bank statements, along with identification documents.
Loan Amounts and Repayment Terms
- Borrow between £1,000 and £50,000, depending on your financial profile.
- Repayment terms range from 1 to 8 years, giving you flexibility to manage your budget.
Interest Rates
- For loans between £10,000 and £30,000, the representative APR is 5.9%.
- The actual rate you receive depends on your individual circumstances, with a maximum APR of 18.9%.
Additional Considerations
- Joint applications are not accepted—only individual borrowers can apply.
- You can make overpayments without penalties, helping reduce the total interest paid.
Before applying, review your finances to ensure the loan fits your budget. If you’re eligible and confident about repayments, this could be a solid borrowing option tailored for First Direct customers.
First Direct Existing Customer Personal Loan
Finally, Here’s How to Apply
Applying for a First Direct Personal Loan is a straightforward process, but being prepared can make it even smoother. First, check if you meet the eligibility criteria—you must be at least 18 years old, a UK resident, and earn a minimum of £10,000 per year before tax. You’ll also need to be a First Direct current account holder.
Once ready, gather your details, including address history, employment information, and proof of income. You can apply via the First Direct app, online banking, or by phone. Most applications receive an instant decision, but if further checks are required, it might take a little longer. If approved, the funds are typically transferred immediately, allowing you to access your money without delays.
To improve your chances of approval, ensure your credit history is in good shape and that you’re applying for an amount that fits within your financial capacity.
Check out another tip for an excellent Personal Loan
If the First Direct Personal Loan doesn’t quite meet your needs, consider the Royal Bank of Scotland (RBS) Personal Loan as an alternative. RBS offers loans ranging from £1,000 to £50,000, with flexible repayment terms between 1 to 10 years, allowing you to tailor the loan to your financial situation. Additionally, RBS provides a representative APR of 6.6% on loans between £7,500 and £14,950, with rates varying based on individual circumstances.
| First Direct Existing Customer Personal Loan | MBNA Personal Loan | |
| Credit Score | Good | Fair |
| Representative APR | Representative example: Borrow £4,500.00 over 3 years at a rate of 9.9% p.a. (fixed). Representative APR 9.9% and total payable £5,187.60 in monthly repayments of £144.10 | Representative example: APR for loans from £7,500 to £25,000 was 8.7%, repayable over one to five years. This is the rate available to 51% of successful applicants. But the rate you’re offered will depend on your individual financial circumstances and credit history |
| Loan Amount | £1,000 to £50,000 | £1,000 to £25,000 |
| Terms | 1 year to 8 years | 1 year to 7 years |
One notable benefit of the RBS Personal Loan is the potential for same-day funding, ensuring quick access to funds when needed. Moreover, RBS allows joint applications, which can be advantageous if you’re looking to borrow with a partner.
However, it’s important to note that RBS personal loans are available only to existing current account holders. For a comprehensive review of the RBS Personal Loan, including detailed information on rates, eligibility, and application processes, please refer to our full review.
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