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Choosing the right way to borrow

If you’re looking to borrow money, it is important you compare and choose the right options for you based on your circumstances.


Personal Loan Credit Card Current Acount - Planned Overdraft
Eligibility Criteria If you’ve held a Lloyds current account for at least three months, apply online, in branch or by phone. If you hold a mortgage, loan or credit card with us apply in branch or by phone. To apply, you must be an existing Lloyds Bank customer and a UK resident aged 18 or over. Subject to status. Applicants are approved subject to status and must be a UK resident aged 18 or over. Applicants are approved subject to status and must be a UK resident aged 18 or over.
How much you could borrow £1,000 to £50,000 Subject to status Subject to status Subject to status
Repayment Term 1 to 7 years. The term is fixed when you take out your loan. Credit cards are designed to be a flexible form of borrowing so there is usually no set repayment term.
It's worth bearing in mind that some of our cards have interest-free promotional periods and these are usually only for a specified period of time. In order to keep this promotional rate you will need to pay at least the minimum payment each month and stay within your credit limit.
Only paying the minimum will cost you more as it'll take longer to clear your balance.
Overdrafts are designed to be a flexible form of borrowing however you should note that they are repayable on demand.
Fixed interest rates/fees? Your interest rate will be fixed. We don’t charge you any fees to set up your loan but fees can apply if you miss a payment. Interest rates are variable, which means they either go up or down. To find out more about variable interest rates, call our Credit Card Customer Services team. Depending on your account, we may charge you debit interest, a monthly overdraft usage fee and / or a daily fee for using an overdraft. View our current overdraft interest rates and charges.
Repayments You can pay your loan off with fixed monthly repayments. You have the option of making additional payments to your loan, which will reduce the overall interest you’ll pay and may reduce your loan term. There is no Early Settlement Adjustment if you pay off your Flexible Loan early. However, there may be an Early Settlement Adjustment on our other loan products including the Online Exclusive Loan. It's up to you how much you repay each month. You must pay at least the minimum payment by the due date each month, but you can also choose to pay either the full balance, a fixed percentage of your account balance or a fixed amount each month to reduce your balance quicker.
You won't be charged for paying more than the minimum payment and can set up a direct debit for all of these options to help ensure you don't miss any payments.
An overdraft is intended as a short-term borrowing method, to help tide you over until you have funds available to put your account back into credit. Overdrafts are repayable on demand.
Secured against your property No. No. No.

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Be comfortable with the amount you borrow and confident you can pay it back. So before you make a decision, ask yourself:

  1. What will my commitment be?
  2. Can I afford to pay the money back?
  3. Are my circumstances likely to change?
  4. Will I be able to afford bigger repayments if interest rates go up?
  5. Are there any risks? What will happen if I can’t pay back what I borrow?
  6. What features or benefits will I get?

APR

APR stands for the Annual Percentage Rate. You can use it to compare different credit and loan offers. The APR takes into account the interest on the money you borrow and other charges you have to pay, for example, any arrangement fee. The APR won't always include all fees and charges - you may still need to pay missed or late payment charges, or balance transfer fees for credit cards for example.

Representative APR

The Representative APR is calculated by looking at the rate, at least 51% of customers are expected to receive when applying.

EAR

EAR stands for the Equivalent Annual Rate. This is the actual interest rate of an overdraft or credit card. It doesn't take account of any fees or charges.

Section 75 of The Consumer Credit Act 1974

Section 75 of The Consumer Credit Act 1974 gives credit card customer’s legal rights if they’ve paid for goods or services using their credit card. It applies when the total price of the goods or services is above £100 and up to a maximum of £30,000 and all or part of the purchase price was made using a credit card. If you’ve bought something using your credit card, the credit card issuer and the supplier may be equally liable for compensating you if things go wrong. For example if there's a breach of contract or misrepresentation by the supplier against you, you may be able to successfully claim a refund through us. Contact us to find out more on how to claim.

Credit scoring

When you apply to borrow money, many lenders will use a credit score to help them make a decision on whether to lend the money or not. When you apply to borrow from us, your score might be based on what we know about your existing accounts with us, and information from other credit reference agencies. If you’re an existing Lloyds Bank customer, you can get a loan quote which won’t affect your credit rating. With a good credit history and payment record you're likely to be given a good credit score. If you've had many credit cards and loans, have missed payments and made lots of lending applications you may get a lower score. A low score may mean you're lent less money, given a higher interest rate or your application is turned down.