Pick the right loan and reap the benefits

When looking for the best rate or comparing loans, there are vast amounts of choice on the current market and it is important to choose the most suitable for your financial situation.

Unsecured loans offer varying typical annual percentage rates (APR) and, based on an amount of £8,000, Moneyback bank offers 5.6 per cent repayable over 36 months.

Northern Rock and Barclaycard have typical APRs of 5.7 per cent for borrowers taking a loan of £8,000 while the AA and Alliance & Leicester offer 5.8 per cent and 5.9 per cent respectively. However, both apply a penalty if the loan is repaid early.

According to Motley Fool, the top ten unsecured loans based on an amount of £8,000 have monthly repayments of £240 to £245 over three years. The figures are based on loans taken without payment protection plans.

An unsecured loan is one taken without collateral.

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