Prices on personal loans have been heading upwards, making it even more important to shop around before buying. The Moneywise weekly personal loans update looks at some of the hottest products on the market.

There is no denying that now might not seem the best time to take out a personal loan. The increasing cost of mortgages (as a result of the credit crunch) has been well reported and at the same time the interest rates on personal loans have also increased. And at a time when food and fuel bills are also rocketing, no one wants so spend more on their loans that they have to.

The upshot of all this is that shopping around is more important than ever before. When it comes to shopping for a personal loan, there are several factors to be aware of. Make sure you read the Moneywise guide to finding a personal loan before you start your search.

Luckily, many people will still be able to find a personal loan that suits their circumstances.

If you need to borrow between £7,500 and £25,000, then ASDA offers a typical APR o 7.4%, with a three-month deferred start. However, you have to be aged 24 or older to be eligable for this loan. 

The AA offers an online personal loan for its members aged 18 and over priced at a typical 7.7%, with a three-month deferred start. For non-members, it offers a typical rate 7.9% APR, again with the option to defer payments for three months. And it also offers a car loan priced at 7.9% APR. 

Yourpersonalloan.co.uk also offers a personal loan for homeowners priced at
7.6% APR, with advances between £5,000 and £25,000. The minimum
term is between 12 months and seven years, and you can defer your first
payment for one month. Bear in mind, though, that you have to be 23 to apply. 

Sainsbury's Finance offers an online personal loan priced at 7.7% for people aged 18 and older. Like many other loans you can defer payments for three months.

Abbey also offers an online personal loan, paying 7.9% APR for people aged 18 or older.

Career Development Loans

If you need a loan to pay for a qualification or course, then a career development loan (CDL) might be for you. These types of loans allow you to borrow between £300 and £8,000 to help fund up to two years of learning, or three years if 12 months of this includes practical work experience.

The Learning and Skills Council will pay the interest on your loan during your studies and for one month after you finish.

Barclays and The Co-operative Bank are the only institutions to offer CDLs.

Barclays’ CDL currently has a typical APR of 12.9%, and has a repayment period of up to five years. You’ll start paying back the loan two months after your course completes.

The Co-Operative Bank also has a typical APR of 12.9% with a maximum repayment term of up to five years. Again, payments don’t kick in until two months after your studies finish.

More on:

• PPI
• personal loan