Graduate Loans

Some loans are offered specifically to a particular set of people by banks and other institutions.

One such loan you will often see is the graduate loan, so if you are a graduate it is worth finding out what this is and how it works.

Basically, if you have recently taken and finished your finals and need a loan, then the graduate loan could be a specific product for you.

You can normally take out in the region of say £500 to £10,000 and can be a really useful way to get a sum of money in the bank before you actually start working for instance.

Now, why would you want to take out this loan rather than a standard personal loan?

This is an excellent question, and the key one to ask.

Luckily the answer is quite simple - because the APR is better for you because it is lower.

In simple terms this means that you can get a loan that asks you to pay back less if you get a graduate loan rather than if you get a standard personal loan.

For instance, looking at the time of writing on a typical UK bank site, the loan rate advertised for a standard personal loan is 8.4% APR whilst the rate for the graduate loan is just 7.9% which means therefore that you borrow the money at a cheaper rate.

Therefore if you are a graduate and you need a loan, make sure you take advantage of this and get the money at a lower repayment rate and save money in the long term!

Related Articles

Your Credit Rating Explained
How to get the best loan for you
Loan catches to be aware of
Different types of loan explained
How to understand how much money you owe on your loan

Property Articles

More Financial Articles