Personal loans are generally unsecured amounts offered to those with good credit at currently historically low interest rates. These loans are typically ranged between £1,000 and £25,000 and over a period up to 5 years. Rates are currently hovering around 4 percent for applicants with a good credit record.
Sainsbury's banking arm conducted some research into the use of these loans and the usual main reasons for applying for a loan came up, including:
- Vehicle purchase.
- Home renovation.
- Debt consolidation.
However, some other unique reasons discovered were:
- Financing hair treatments.
- Hobbies such as building a steam engine.
- Purchasing collectables such as a vintage bus.