Jul 24, 2006

In the light of rising flexi-loan rates from some providers and the withdrawal of one provider from the market, a Moneyfacts expert has examined the various options remaining and their possible place in the lending market.

The table below summaries the key features of the Flexible loans currently available:

 
According to Moneyfacts’ Lisa Taylor, the rates do not appear dissimilar as average rates on overdraft facilities hover at 12.5%. “Also when we look at the individual lenders, rates are equal to or lower than those offered on overdrafts, to reflect the added structure of repayments that flexi-loans require.”

 
Taylor pointed out that, with the exception of HSBC, all rates are marginally higher on standard credit cards. “This is surprising when both products offer the same repayments structure, although it is certainly cheaper to access cash on a flexi-loan, compared with the high rates charged for cash withdrawals on credit cards.”

 
“Personal loans are more difficult to compare as most provider charging structure will depend on the amount borrowed and individual risk. However it is safe to say that for consumers looking for a long-term structured facility, better rates can be found in the personal loans arena,” Taylor added.

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