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Guide To Loans

A personal loan allows you to borrow money from a bank, building society or other financial organisation. When taking out a personal loan with the Co-operative Bank you will borrow a lump sum at a fixed interest rate and agree to make monthly repayments towards this loan over a specific period of time. Over this time your loan will also accrue interest.
What To Consider

What To Consider

When looking for credit, it is important that you consider your situation, the purpose for which you are borrowing and choose the right type of borrowing for your circumstances. Other options, such as credit cards or overdrafts, may be a better solution.

Carefully considering all of your options will help you make an informed decision about your finances. Please note: at the Co-operative Bank, you will not receive financial advice about which products or services will meet your needs.


Things to consider
Before taking out a personal loan you should firstly consider whether you can afford to repay it.

Consider:

  • Interest rate (APR)
  • Length of the loan term
  • Monthly repayment cost
  • Penalties for missed or late payments
  • Early repayment options
  • The purpose for which you are borrowing

If you’re in need of credit, a loan may be a suitable solution. However, it’s important to understand that there are number of other ways to borrow money, and they may be better suited to your needs.

When Loans Are Helpful

When Loans Are Helpful

Planned Purchases
If you are looking to fund, for example, improvements to your home, or a new/used car, those are significant purchases that a loan could help with. However, you should never borrow more than you really need and can afford to comfortably repay, so think about using savings together with a loan to make the purchase.

Remember, it’s usually cheaper in the long term to save up to buy the item you want without using a loan. Do you need this purchase right now, perhaps you can afford to wait and save

Unexpected Expenses
There are some eventualities that you simply can’t plan ahead for. In a financial emergency - such as needing a large sum to address an urgent home repair - a personal loan might be a good solution.
However, if you want to borrow money for a term under 12 months, you might want to consider an overdraft or credit card instead.

Debt Consolidation
If you are currently using several different forms of borrowing - such as overdraft, loans or credit cards - bringing them together with a consolidation loan could help to simplify your situation and keep better control of your finances. Instead of paying a variety of amounts to different lenders each month, a loan to consolidate other borrowing could mean making only one payment to one lender each month. This amount will be also be fixed, meaning you’ll know exactly what you need to pay, and what you can afford to spend. However, the interest rate on a loan may be different to your existing borrowing so it's important to decide if this course of action is right for you.

As with all financial products, making an informed decision will help you to make the right choice. Never borrow more than you can afford to repay. Please note: at the Co-operative Bank, you will not receive financial advice about which products or services will meet your needs. Do your research, and remember you can get in touch with one of our advisors via branch, telephone or web chat if you if you would like to talk about a loan from the Co-operative Bank.

The Application Process

The Application Process

Before you apply, check you meet our eligibility criteria.

  • You must be 18 or over
  • You must be a UK resident
  • Earning a minimum Gross Annual Income (GAI) of £10,000
  • An existing customer having held a Co-operative Bank or smile current account for at least 7 months (Cashminder, Student and Pathfinder accounts are not eligible)
  • Not had any County Court Judgements (CCJs), entered into an Individual Voluntary Arrangements (IVAs) or Trust Deeds nor been declared bankrupt within the last 6 years
  • Not in arrears or have not missed more than 2 payments on any credit agreement in the last six months
  • At least one applicant must be Employed full time, part time, self-employed or retired
  • Consolidating an existing Co-operative Bank loan is subject to having made at least 6 repayments on your present loan
  • To apply for a joint loan account, both applicants must be aged 18 or over, UK residents and reside at the same address

Approval is subject to status and based on a credit check and an assessment of your personal circumstances.

The application process should take around 10 minutes. During this time, you will be asked for the following information and having this information to hand will help speed up the application process:

  • Your home address(es) from the last three years.
  • Your bank account details (sort code and account number).
  • Your employer's name and address (if applicable).
  • Your monthly income and outgoings
  • Details of any Co-operative Bank accounts you may hold.

Upon receiving your application, we will assess your credit history and financial situation. We will then use this information to decide whether to lend to you. A good credit score will improve your chances of approval.

Your Credit Score

Your Credit Score

The following actions below can help improve your credit score, a good credit score will improve your chances of approval.

Check your credit report:
You have a legal right to request a copy of this from a Credit Reference Agency. Checking the report will give you an idea of where you stand financially, and allow you to look for mistakes.
Pay on time:
Missed payments remain on your credit report for a long time. Making your repayments on time demonstrates that you are a sensible borrower, and reduces your potential risk.
Get on the electoral roll:
Lenders use the electoral roll to confirm your identity. If you are yet to register, do so – it is much harder to get credit otherwise.
Avoid applying for more credit:
If you are considered to have too many financial commitments, you may struggle to get credit. It may be wise to stop any further applications until your credit file and score have improved.

Representative example: 4.9% APR representative. Loan amount £10,000 for £187.77 per month over 60 months. Total amount repayable £11,266.20. Rate of interest per annum 4.87% fixed.

Loans calculator

Fill in the amount and term boxes or use the sliders to see how much your monthly repayments could be.

Enter amounts in the boxes to see how much your monthly repayments could be:

I need to borrow  

£

Min £2,000 Max £25,000

I would like to pay it back over

months

Min 12 Months, Max 84 months

To apply you must be:

  • Aged 18 or over
  • A UK resident
  • Earning a Gross Annual Income (GAI) of £10,000
  • An existing customer having held a Co-operative Bank or smile current account for at least 7 months (Cashminder, Student and Pathfinder accounts are not eligible)
  • Not had any County Court Judgements (CCJs), entered into an Individual Voluntary Arrangements (IVAs) or Trust Deeds nor been declared bankrupt within the last 6 years
  • Not in arrears or have not missed more than 2 payments on any credit agreement in the last six months
  • At least one applicant must be Employed full time, part time, self-employed or retired
  • Consolidating an existing Co-operative Bank loan is subject to having made at least 6 repayments on your present loan
  • To apply for a joint loan account, both applicants must be aged 18 or over, UK residents and reside at the same address.
Approval is subject to status and based on a credit check and an assessment of your personal circumstances.

  • Monthly repayment £
  • Total Amount Payable £
  • Representative APR %
  • Fixed Interest rate %

Calculations shown for illustrative purposes only. The APR shown above may not be the rate you will receive. We will offer you a rate based on our assessment of your personal financial circumstances.

Representative example:

4.9% APR representative. Loan amount £10,000 for £187.77 per month over 60 months. Total amount repayable £11,266.20. Rate of interest per annum 4.87% fixed.

Continue

You can save your form at any point if you wish to complete it later.

Important information

Please make sure you read this important information before you purchase this product to ensure that it meets your needs. The useful documents below will provide you with all the details you need to make your decision.

Credit facilities provided by The Co-operative Bank are subject to status and our lending policy.
The Bank reserves the right to decline any application or offer a loan at a rate that differs from those advertised.