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    I need to take a loan out for a little while and Natwest seems quite good with 6.9 APR (?)

    I wanted to know how this works. I want to borrow around £6000 and pay it back within about 3-4 months (maximum within a year).

    I am not sure about the APR etc so wanted to know how it works ... how much I end up paying back in total and other other details I should know ?

    thanks

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    Cyrus

    I need to take a loan out for a little while and Natwest seems quite good … I need to take a loan out for a little while and Natwest seems quite good with 6.9 APR (?)I wanted to know how this works. I want to borrow around £6000 and pay it back within about 3-4 months (maximum within a year).I am not sure about the APR etc so wanted to know how it works ... how much I end up paying back in total and other other details I should know ?thanks



    The rate is 7.8% on that amount, the lower rate is for higher amounts. At that rate over a year you would pay £6248.40 without loan protection and £6848.28 with loan protection.

    Admin

    Are you securing the loan against anything? Northern Rock are often mentioned on MSE for having lowest personal loan rates, so it might be worth checking their website out.

    Cyrus

    I need to take a loan out for a little while and Natwest seems quite good … I need to take a loan out for a little while and Natwest seems quite good with 6.9 APR (?)I wanted to know how this works. I want to borrow around £6000 and pay it back within about 3-4 months (maximum within a year).I am not sure about the APR etc so wanted to know how it works ... how much I end up paying back in total and other other details I should know ?thanks



    Hi

    Firstly with Nat West the loan term according to their website is between 1 and 5 years. So if you're going to borrow for only 3 or 4 months you have to be very careful as repayment before the full term usually means you end up paying a lot more interest than 3 or 4 months worth.
    Secondly the rate of 6.9% is only for loans of £7500 or more and that is 'typical' and not guaranteed. Interest rate will be based on your credit score and may differ from the rate quoted.

    Depending on what you need the £6000 for you may be better off with a credit card offering 0% rate see here for some examples

    moneyfacts.co.uk/car…spx

    Just remember to pay the balance before the proper interest rate takes hold :-D

    Original Poster

    thanks guys ! Some very useful information there.
    I need the money in cash so I guess a credit card is out of the window ? Also, some 0% credit cards say you need to pay via their special cheque (like with Sky credit card). If I can take cash out then this is great as I can pay it all back before the proper APR kicks in.

    I'm not securing the loan (first I have heard of this and never took out a loan before). Interesting though, so I will look into it ...

    I'm after a quick, hassle free loan ... hence I liked natwest as they said you can apply online and the money will be in your account (if passed) the next day.

    Original Poster

    Can I use the 0% for withdrawing cash from ? Would it still be 0% ?

    pluves1

    HiFirstly with Nat West the loan term according to their website is … HiFirstly with Nat West the loan term according to their website is between 1 and 5 years. So if you're going to borrow for only 3 or 4 months you have to be very careful as repayment before the full term usually means you end up paying a lot more interest than 3 or 4 months worth.



    Yes be very careful, do not assume that you will only be paying the 3/4 months interest as the banks are 'clued up' on this and may either charge you an 'early settlement fee' or frontload the interest which means that the interest payments are higher at the beginning of the loan term.
    Ask them directly how much you will be repaying if you do clear the balance after 4 months and get it in writing or computer printout if possible as I was misinformed previously and had no leg to stand on when I tried to argue against frontloaded interest.

    Hope this helps

    P.S. Regarding credit cards - I have never heard of one that offers 0% interest on cash withdrawals, even when balance transfers and purchases are included.

    Original Poster

    thanks.

    Balance transfers is not useful for me
    I basically need an interest free loan but then this is probably non-existant as companies would not make money then.

    Are there any other ways of loaning about £5000 for 3-4 months, and paying it back in about 2-3 months ? Even if I have to pay a "little" interest I do not mind.

    With the credit card companies, if you use a cheque you get charged the same (higher) rate as though you had drawn out cash, so be careful!

    When I last wanted a loan I did a search (through uswitch) & chose the cheapest one that didn't penalise me for early repayment of the loan. I went with Northern Rock, & had no problems with them, even when it came to paying the loan back early (they actually suggested that I do it by bank transfer, over the phone, rather than sending them a cheque, as the loan would be paid off there and then, whereas if I sent a cheque & there was a delay for any reason I might up having to pay another month's worth of interest).

    Don't just go for the cheapest company, though, without looking at the small print, as there may be hidden charges!
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