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What Is A Personal Loan In Northern Ireland?

In Northern Ireland, like in all UK countries, a personal loan is an amount of cash that is provided by a bank to an individual with the promise that the individual will repay the amount they borrowed plus interest. This interest is based on the current Bank of England rate that is adopted by all UK commercial banks, including the Allied Irish Bank, and the Bank of Ireland. 

Personal loans, unlike other types of loans like mortgages, are often a lump sum, unattached to a specific asset, such as a house or piece of land. For this reason, they may also be called unsecured loans. These personal loans are usually repaid over a shorter term than other types of loans.

How Does A Personal Loan In Northern Ireland Work?

Applying for a personal loan in Northern Ireland is mostly the same as applying for a personal loan anywhere else in the UK. This is because the banks, operating through the UK regulations and standards on personal credit, have access to the same credit information on your application anywhere in the UK, which makes the process uniform and streamlined.

You simply have to fill out a bank loan application, which can then be assessed, often automatically, and a decision returned within as little as a couple of hours. The process is not too time consuming but will require you to have your details at the ready, including your personal details, bank details, and importantly your employment details. 

You will also be asked what you’re using the money for, how much money you want, and how much time you want to pay it back. There may also be deals offered by the provider that can be very worthwhile. 

As mentioned above, a problem may arise if you’ve been living outside of the UK, even in the Republic of Ireland, as your credit history will be in a non-UK format, which can slow the process and even be a reason for rejection of applications. 

What Is An Acceptable Reason For A Personal Loan?

There are many reasons for taking out a personal loan and the top 3 that are the most sensible reasons for taking out a loan, are as follows: 

  1. Debt Consolidation: When you have taken out multiple loans to pay off different items, and are being chased by more than one party, often the most sensible option is to take out a larger loan, to pay off all of your creditors in one go. This will ease the burden, by making less work for you in the long run, even if the total amount you have to pay may go up, the time you have to repay will be more forgiving, and you’ll have fewer angry letters to answer to. 

  1. Emergency Situations: These types of situations typically call for a payday loan, but there are lots of personal loans that tick the same boxes and will get you out of a scrape. If you are struggling to pay for a rainy day expense, such as a surprise MOT bill, business expense, or private medical bill, a personal loan can be the perfect solution. 

  1. Renovations Or Repairs: Although a large purchase like a home will require a mortgage with monthly repayments, the same cannot be arranged for an extension. To build onto your existing home, your best option may be to take out a personal loan. This can be an excellent way to get started on a project that you have always wanted to carry out. 

Loans For Bad Credit In NI

If your financial credit score is not great, that is not a dealbreaker for most banks, as many of them want to lend as much money as they can, and will consider your application even with some bad history. 

With late repayments, CCJ’s, and the like, your applications will mostly be accepted by the more lenient banks, however, with a negative history your interest rate offers will be higher than other applicants. 

What Are Doorstep Loans In Northern Ireland?

A doorstep loan is a personal loan that’s handled in person at your own home. If you can imagine that a personal loan is like a takeaway meal, a doorstep loan is like a Deliveroo meal. 

The doorstep loan is delivered to your door in the same way that a pizza is. The only difference is that they’ll be back to your door asking for a slice back every week until they have a pizza back plus interest. 

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