What is a loan for a young person?

A personal loan is where you borrow money from a lender, and agree to make repayments over a set period of time. Repayments must be made on time, usually monthly. You need to make sure that you have sufficient income to meet the payments, or you may default on the loan which will give you a bad credit record and make it more difficult to get a loan in the future. You need to think not only about whether you have sufficient income to make payments now, but think about what happens if your circumstances change, such as if you lose your job or you go on shorter hours and your income reduces.

You may want to borrow money for a new car, to make home improvements or to repay other, higher rate finance you may already have. If this is the case, please bear in mind that although a new loan may reduce your monthly payments now, they may increase the overall amount you will have to pay back.

Can I get a loan aged 18 to 21?

Looking for a loan under £25000?

If you are aged 18 or over and need a personal loan, we can put you in touch with a regulated loan broker, even if you have had financial problems in the past and you are worried about where to get help with you finances. If you need to raise money fast, a qualified loan broker can help you get back control of your finances.

What types of loan are available for young people?

There are three different types of loans discussed on this website:

• Personal Loans, also known as Unsecured Loans
• This is a loan in which there is a set number of regular payments. The maximum amount you can borrow is £25,000 over a maximum term of 7 years. These are also known as installment loans
• Payday Loans
• Usually, payday loans are for a shorter term, often paid back in a single lump sum payment on the borrower’s next payday. They have a higher interest rate than a personal loan.
• Unsecured Homeowner Loans
• These are personal loans only available to people who own their own property - not to people who are renting or living with family or friends. The loan is not secured on the property. The interest rates are normally lower than personal loans but higher than secured loans.

How much will a loan cost me?

To find out how much an unsecured loan will cost you, please complete the personal loan application
If you want a car loan, complete the Personal loan application form

The loan broker will contact you to discuss the loan and let you know the monthly payments

Please make sure a personal loan is right for you before taking it out. You should always think very carefully before committing to any form of credit or borrowing money.

Financial Difficulties

If you're trying to manage existing debt or in financial difficulty, consider what your options are before you borrow. For further help on managing your money visit the Money Advice Service.