A reliable vehicle can sometimes be one of the most important investments an individual can make. Vehicles can be very expensive, and if you are not sitting on a lot of savings, buying a new vehicle could seem like a far-fetched dream.
If you are looking for a new or used vehicle, one tool that you can use to be able to afford it is a car loan. There are many options open to those individuals, each with their own unique features and rates. This will depend on the bank you choose to go through, as well as personal financials.
In this article, we will be looking at how to apply for a Lloyds Bank Car Loan, as well as everything you need to know about that loan.
Lloyds Bank Car Loan Benefits & Features
This loan comes with a long list of benefits and features that are comparable to other car loans available on the market today. You will be able to borrow between £1,000 to £50,000. Though different rates will apply to each loan, these loans will be repaid from one to seven years.
Managing the loan is very versatile. The loanee can do this via online banking with the use of the bank’s app or in a physical branch. It can also be handled over the phone, as well. Along with this feature, the applicants will be able to have flexibility of payments. One benefit that comes along with that flexibility is that the loanee can make extra payments without penalty.
Another feature that is available in regards to payment is the ability to apply for two payment holidays. Over a year cycle, you can do this for each month if approved.
Fees & Rates
There is the potential for you to receive a 3.9% representative APR when you borrow between £7,500 and £25,000. For loans under £25,000, you will have up to 5 years to repay the loan. Anything larger and the repayment period will be potentially extended to 8 years. That rate of APR may not be the rate given to the loan, though. The maximum rate is 29.9%.
If you want to make larger payments or extra payments, there are no fees. However, if you want to pay the loan completely off early, there will be one fee attached to the bill. Repaying early will see your loan being charged for 58 days of interest on top of the other interests and fees.
How to Apply
In order to apply for a loan, the applicant must be 18 years of age or older, a resident of the UK, and have had a Lloyds bank account for at least a month. If you already have a credit card, mortgage, or loan, then you can apply via phone. Otherwise, the applicant will have access to applying for their loan in a bank, as well as online.
The first step in the application process is to get a quote. This will allow the individual to have an idea of the possibility of being approved and what the loan may look like. This will also not affect your credit score.
Once this step is done, the potential loanee can continue with the loan application process. Before beginning the application, they should have all the essential documents and information available. These include the following.
- Annual income before taxes
- Address history
- Other credit card and loan documents
There may be more documents needed. If the applicant is unsure of what is needed, they can contact the bank’s customer service line. Once the appropriate documents have been collected and the mode of application has been chosen, the next step is to fill out the application.
Once the application is submitted, the individual will then need to wait for a decision. The time frame for this varies per application.
Contact Information
For more information, you may want to contact the bank. Here are a few ways to do that.
Lloyds Bank PLC, 25 Gresham Street, London, EC2V 7HN
If you want to find a branch check here.
Website: www.lloydsbank.com
Tel: 0345 602 1997 (UK), +44 1733 347 007 (internationally)
Note: There are risks involved when applying for and using credit. Consult the bank’s terms and conditions page for more information.
