Rainbow's Guide to Personal Loans
Personal loans are offered by lending institutions such as banks and building societies and are so called because the lender requires no security for the debt. Personal loans are available for a range of different amounts and repayment terms. Depending on the amount and purpose of the loan, you will be able to choose from a range of repayment periods. Larger loans such as those over £10,000 can usually be taken over longer terms i.e. 7 to 10 years. The minimum loan amount is typically £1,000 although some lenders do offer £500 and upwards. The maximum amount you can lend is £25,000, although this will vary between lenders and products. 
The amount borrowed is subject to an interest charge, and the interest rate applied is known as the Annual Percentage Rate (APR). Generally, it is advisable to compare the APRs of different products as a means of
determining how competitive they really are.
Getting accepted for a personal loan can sometimes prove difficult if you’ve got bad credit, have changed addresses frequently, have no previous credit history or are self-employed. There are lenders who can help those who need 'bad credit' loans and those who have difficult personal circumstances. The APR is likely to be higher than that offered by a standard personal loan provider, but the chances of getting accepted are far greater.
