What is a personal loan, and what can I use one for?
A personal loan is a fixed amount of money you can borrow from a lender, with a specific length of time to repay it agreed at the start. The lender will determine a fixed interest rate, which affects how much you will pay back in total and your monthly repayments. You could repay the loan over several years, depending on the size of the loan and your personal circumstances. You can usually borrow up to £25,000 with a personal loan. For larger amounts, lenders may require you to secure the loan against a house or other asset.
You can get a personal loan to use in different ways:
Debt consolidation - Personal loans can help you manage your finances if you already have several monthly repayments for credit cards, overdrafts, store credit or other debts. A debt consolidation loan combines these debts into one monthly repayment, making it easier to manage.
Home, holiday, or car - A personal loan, also known as an unsecured loan, can be used for various large purchases or costs. You might be looking at a family holiday, or you need a newer, more reliable car, or your house could do with a new kitchen or bathroom, a new sofa, or even vital repairs. You could use a personal loan of up to £25,000 for these expenses. Anything that costs more than this would need a secured loan.
With one quick and easy eligibility check, let Asda help search for the best loan rate to suit you
How do our personal loans work?
We've taken the work out of finding and checking your eligibility for a personal loan. We work with a trusted panel of lenders to offer great loan rates to suit your circumstances. If you're worried about being accepted for a loan, the soft search technology we use won’t affect your credit score when we check your eligibility. It's quick and easy, and you'll get an online decision from lenders in minutes, so you don't have to put your plans on hold.
With so many options out there for personal loans, it can be tricky to know if you're making the right choice. At Asda Money, we make it simple by only offering unsecured personal loans, so you don't have to be a homeowner to check your eligibility. You can use a personal loan for all sorts of things, from debt consolidation to travel costs, home improvements, or a new car.
If you are considering consolidating existing borrowing, you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.