Why could borrowing more 'cost less'?
Many personal loan providers are now offering lower interest rates for larger loans, and some borrowers could save over £1000 when they borrow more than £5000 from their loan provider.
Smaller personal loans are charged at a higher rate as a result of several factors, including the decreased profit to the lender on smaller loans, and the perception that they are higher risk.
David Black, pricipal banking consultant at Defaqto, comments:
"Borrowers should take care when choosing the size of loan they want, as a little effort in researching the interest rates charged on different tier levels could save them a considerable amount of money.”
Choosing to repay a loan over a the shortest possible time scale can also help to save consumers money.
Some lenders,- including Abbey, Northern Rock and Norwich and Peterborough still offer a standard rate for all sizes of loan.
Notes to editors
Loan Genie allows users to compare loans online, and is part of Genie Group.
Genie Group Ltd is a leading independent provider of internet comparison shopping services in the UK, and was set up in 2004 by Philip Wilkinson (co-founder of Kelkoo UK). Genie Group's unique selling point is 'the Genie', which makes personal recommendations to internet shoppers based on ground-breaking, intelligent technology. This gives Genie Group the ability to provide an enjoyable and satisfying internet shopping experience, and deliver an unmatched quality of sales leads to our affiliate merchants. Genie Group launched its flagship broadband comparison service Broadband Genie in January 2005.
More information can be found at Loan Genie . Please direct all media enquiries to Ciaron Dunne. Interviews with Philip Wilkinson can be arranged on request.
