Post Office Personal Loans Review

Post Office Limited is a credit broker that provides loans from the Bank of Ireland.
Post Office

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Pros

  • Fast eligibility decisions with no hard credit check.
  • Borrow up to £25,000 with repayment terms from one to five years.
  • Fixed APRs (annual percentage rate) from as little as 2.9% with zero arrangement fees.

Cons

  • Applicants with a bad credit score are unlikely to be approved.
  • Lender criteria mean you must be 21 or older and earn at least £12,000 a year.
  • The max APR on the shortest-term loans is 29.9%.
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Introduction

The Post Office is a British institution. While it's not a conventional lender, it has expanded in the last few years to offer several borrowing products, including loans, credit cards and insurance.

Note that if you apply for a Post Office loan, they act as the broker, but the actual loan comes from the Bank of Ireland UK - there's nothing untoward about that, and it's all explained on the website, but worth knowing, so you're not thrown when your loan agreement arrives in your inbox!

Loan Options

Post Office loans can be used to consolidate debts, buy an asset (such as a new car) or cover the cost of home improvements, among many other eligible applications.

Key Features

  • Borrow up to £25,000
  • Repayment terms up to five years
  • Upfront APR and monthly repayment illustrations
  • Funds available next-day
  • No arrangement fees or early repayment charges (although if you pay the loan back early in full, you pay up to 58 days of interest).

Loan security

Post Office personal loans are unsecured, so you won't need to offer collateral (like a charge against your home). Loans are fully FCA regulated and authorised by the Prudential Regulation Authority, so all the normal consumer protections apply.

Loan Criteria

If you visit the Post Office Personal Loans page, you'll see a handy calculator where you can say how much you wish to borrow and the payback period and see a full breakdown of the repayment cost, overall loan charge and how much you'll repay per month.

However, the published rates are indicative, and if you click on the 'are these rates guaranteed', you'll get a more detailed table which tells you the illustrative and max APR for each loan amount and repayment term.

To be eligible for a Post Office loan, you need to be 21 or older, without any CCJs in your name, earn £12,000 or more a year, and have lived in the UK for at least three years.

Conclusion

Post Office loans are simple, straightforward and easy to apply for. You get a super-fast decision, know exactly what your interest rate, overall repayments and monthly cost will be, and get tons of information on the Post Office site to help you make an informed decision.

It might be a no-frills personal loan, but if you need to borrow to finance a purchase or home improvement, it's hard to argue with a loan provider who is so transparent that it's impossible to get it wrong!

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