£10000 Loans

See below a guide to loan amounts. If you are looking to borrow money you should not take a larger sum than you need just to obtain a low interest rate since this is likely to cost you more money in the long term. For example, if you need a loan for £5000 but you notice that £10000 loans are at lower rates, you should think carefully before you take the £10000.

In some situations, taking a large loan to begin with is beneficial. This is because there are a few loans companies who agree a loan at a certain rate and allow you to repay a lump sum immediately. So you could have a £10000 loan agreed and you could pay £5000 off straight away. This means you have a £5000 loan at a £10000 loans rate. You must be very careful to check all the small print of any loan agreement before proceeding through to loan completion.

As a guide, it is always better just to apply for the amount you need and search around for the best rate and best company to suit you.

Loans between £0 and £3000 will normally have the highest interest rate of all loans. It is not uncommon for example to be offered this amount at rates between 20%-15% (2005 rates). This is because lending companies need to make money by lending money to you and the smaller the loan the less money they can make.

Loans between £3000 and £15000 are often available from banks. They are perhaps the most common amounts of borrowing because most people who want a car loan will fall into this category and most people who need loans for home improvements will also fall into this category. Many people who need debt consolidation request these sorts of amounts, although as debt rises, many people need to look at larger debt consolidation loans.

Sums between £15000 and £25000 will often have lower rates than smaller amounts. You can find loans of these sizes at around 6%APR (2005). However, these sums may not be readily available from all banks and building societies. You need to shop around to find the best deal for your circumstances.

Sums between £25500 and £100,000 or over are usually unregulated loans. Unregulated loans are different in that the lender can set it's own procedures for the administration and default arrangements. You should read terms and conditions of all borrowing carefully and make sure you fully understand the repayment process.