first direct
Borrow from £1,000 to £50,000 at a competitive 5.8% APR. Fixed monthly repayments, flexible terms from 1 to 8 years, and fast application decision.
About the First Direct Personal Loan
The First Direct Personal Loan stands out with its highly competitive representative APR of 5.8% for amounts between £10,000 and £30,000. This loan is flexible, letting borrowers choose any amount from £1,000 to £50,000, which covers a wide variety of personal financial needs, from emergencies to home upgrades.
Repayment terms can be selected from 1 year up to 8 years, so there’s room to tailor the repayment period to suit your budget. Fixed monthly repayments help with financial planning and give certainty throughout the loan’s life.
Applicants must be at least 18, UK residents, with an annual income (or pension) before tax of £10,000 or more. Additionally, you’ll need a First Direct current account, and for loans above £30,000, the account must have been open for 6 months or longer.
The loan is subject to status. The actual rate you receive may differ depending on your credit check and financial assessment results. The maximum APR First Direct could offer is 18.9%, but most applicants in the advertised range will benefit from the lower rate.
The application is straightforward and designed for speed, with decisions given quickly and funds made available immediately once approved. Overpaying is allowed, helping reduce overall interest costs.
Step-by-Step: How to Apply
Applying for the First Direct Personal Loan can be done via the app, online banking, or over the phone. Start by logging into your First Direct account or using the app if you prefer a mobile experience.
Choose the personal loan product, enter your desired amount (between £1,000 and £50,000), and select your repayment period (from 1 to 8 years). Provide some essential financial information and complete the application within minutes.
If your application is accepted automatically, funds are usually paid directly into your First Direct account the same day. If you apply by phone, some additional processing may take place, especially for complex requests or higher loan amounts.
For joint loans or restructuring, a phone application is required, and a loan agreement may need to be signed and posted back. Once formalities are complete, funds are released speedily.
Remember, all applications involve a credit check and affordability assessment. Be sure to have your personal and account details ready for a smooth process.
Pros of the First Direct Personal Loan
One of the loan’s significant advantages is its low representative APR, which can help keep total borrowing costs low over the life of the loan. Flexible amounts and a wide range of repayment terms add to the appeal, making it suitable for various purposes.
Instant decisions and same-day funding for most applicants means you can handle emergencies or seize opportunities quickly. The ability to make overpayments without penalty also sets this loan apart, allowing proactive customers to reduce interest costs and finish repayment early.
Cons of the First Direct Personal Loan
The primary drawback is the requirement to have a First Direct current account. New customers may need to open an account and, for higher loan amounts, wait for six months. Also, while the 5.8% APR is attractive, the rate each applicant gets will depend on their personal circumstances and credit score.
A maximum APR of 18.9% may apply if your financial profile is less strong, potentially making other lenders more competitive for some applicants. Keep in mind, too, that early settlement may involve paying up to 28 days’ interest plus a month’s charge, depending on your term length.
Verdict: Is it Worth Applying?
The First Direct Personal Loan is best for existing customers or those willing to switch. With flexible amounts, competitive rates, and a robust application process, it’s highly recommended for eligible UK borrowers. As with any financial decision, compare alternative offers to ensure the product suits your needs and preferences.