Benefits Of Graduate Loans Facts

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A graduate loan is a type of an unsecured loan that allows graduates to consolidate multiple debts. This is a good choice for new graduates because graduate loans come with a lower rate of interest. Thus, loans with a higher interest rate can be consolidated into one loan.

While eligibility criteria vary from one lender to another, persons can apply for financing during the first 2 or 3 months after completing their studies. Obtaining such a loan is a good idea for persons who need to cover their expenses and have credit card debt and other high-interest personal loans. For example, the money can be used to buy work-appropriate clothes. In addition, financial institutions sometimes encourage borrowers to consolidate interest-free overdrafts, student loans, and other types of debt. While this is possible, graduate loans come with higher interest rates than student loans, and it is not wise to consolidate them. Overdrafts begin to accrue interest after completion of studies, and they may be consolidated depending on what the interest rate is.

Most financial institutions in the UK feature some variation of the graduate loan program. You can check with Yorkshire Building Society, Birmingham Midshires, National Westminster Bank, the Nationwide Building Society, Barclays, and others. Clients of Lloyds, for instance, can apply for a graduate loan if they are 18 years old or older and are under 75 years at the time the term of the loan is over. Applicants should have a Lloyds TSB Graduate Account and should be residents of the UK. Graduate loans are offered in the range of 1000 to 10,000, and loan terms are from one to five years. Borrowers are allowed to make no payments over the first three months. Graduate loans are offered with low interest rates, but this varies based on a combination of factors. These include personal details, past account history, credit repayment history, and others.

Another financial institution to check with is RBS, offering graduate loans with a representative 18 percent APR. The repayment period is determined by the amount borrowed, and the interest rate remains fixed. It is up to 5 years if you borrow up to 9,950 and up to 7 years if the borrowed amount is between 10,000 and 15,000.

Before applying for a graduate loan, however, it is a good idea to read the fine print. For example, does your bank offer payment holidays, allowing you to skip a payment after a set period? If this is possible what is, if any, the fee for this? In addition, does early repayment involve charges or fees, and is there a specific method to make payments? Do you have to buy loan protection insurance? Is there an option to select a date for your monthly payments? The answers to these questions are important because they will help you determine the way of repayment and the cost of borrowing.

To learn more about Cheltenham & Gloucester Bank and Barclays Bank please visit http://www.ukbanks.org

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Topics: Mortgages | Comments Off

Tags: bank, banks in UK, Credit, debt, Finance, financial industry, graduate loans, loan, money, mortgage, Mortgages, student loans, top uk banks

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Hall, John "Benefits Of Graduate Loans Facts." Benefits Of Graduate Loans Facts. 31 Jan. 2012. uberarticles.com. 23 May 2012 <http://uberarticles.com/finance/mortgages/benefits-of-graduate-loans-facts/>.

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Hall, John "Benefits Of Graduate Loans Facts" uberarticles.com. http://uberarticles.com/finance/mortgages/benefits-of-graduate-loans-facts/

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