Fixed Interest Rate

Unlike an overdraft, credit card or flexible loan, the rate of interest you pay on a personal loan that is for a set period of time is fixed at the time at which you borrow money. Of course, if you borrow when interest rates are high and they subsequently fall, your loan may look expensive. The opposite is also true, if you borrow at a time when interest rates are low then you will continue to benefit from the low rate agreed at the time you borrowed even if interest rates rise.

The main advantage of having a personal loan with a fixed rate of interest is that you will know just how much you will have to repay each month and that this amount is fixed for the life of the loan.

See also: Financial Services