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Frequently asked questions about personal loans
Find answers to the most frequently asked questions about our personal loans.
Understanding your loan
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Our unsecured personal loan is available between £1,000 and £50,000. The amount you can borrow is based on your personal circumstances.
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You can use a personal loan for almost any purpose such as:
- Borrowing more on an existing loan
- Car loan
- Debt consolidation loan
- Energy-efficient home loan
- Home Improvement loan
- Holiday loan
- Wedding loan
We won't lend for:
- Gambling
- Investments, such as stocks, shares and crypto currency
- Business reasons
- Land or property – buying, leasing or paying a deposit
- Timeshares or Holiday Clubs
- Anything illegal
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You can take between one to seven years to repay your loan.
The period of time you take the loan over will affect the size of your repayments. If you want smaller repayments, you should repay your loan over a longer term. Just remember, the longer you take to repay your loan, the more interest you’ll be charged overall.
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Credit scoring is a method most lenders use to assess whether they'll lend you money. We'll score the information you give on the application form, together with other factors such as your employment history and how you manage other accounts with us.
We also use other information from the credit reference agencies such as Experian, Equifax or TransUnion. These agencies keep records on your borrowing and payment habits. This includes details on how much credit you have outstanding and information on how many missed or late payments you may have made.
If you have several missed or late payments, you could be considered as 'high risk'. We may refuse to offer you a loan, or offer you a loan but at a higher rate of interest.
If you're concerned about your credit rating, you can register online for a credit report with any of the credit reference agencies.
For more information on credit scoring and how we use it to assess your loan application, read our Bank of Scotland credit scoring page.
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The representative APR (Annual Percentage Rate) is the rate you'll see in advertisements. It's the rate offered to at least 51% of successful loan applicants who apply through this website for a particular loan amount. But it isn’t necessarily the rate you’ll be offered.
Your APR will be based on your personal circumstances, the amount you want to borrow and how long you take to repay the loan.
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No, there is no fee for arranging your loan.
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Your first repayment is due within one month from the date you’re given the loan; however, if you choose a date that’s within 9 days of us providing the loan, you could choose to make your first repayment:
- At the start of the agreement by debit card or;
- When the first Direct Debit is taken on your chosen date in the next month
If you wait until the next month for your first repayment to be made by Direct Debit, this will extend the period of your loan. This means that you would pay back more overall, as interest will be charged from the date you get the loan.
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A 'secured' loan is secured against an asset, usually property. An 'unsecured' loan is where there is no asset offered as security.
Read more about the range of borrowing options in our help centre.
Existing loans
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If you're an existing Bank of Scotland loan customer, and your needs have changed, you could apply to borrow more money at any time.
You can either:
Choose to take out a second loan that you'll repay separately to your existing loan
Or, if you would prefer to have just one monthly repayment, you can close and replace your existing loan with a new larger one. When we work out the amount needed to repay your existing loan in full, we may include up to 58 days’ interest.
If:
- you refinance existing debts the rate of interest on your new loan may be higher or lower than the rate of interest on your original debt.
- you're paying higher interest rates on your borrowing than on the loan you plan to consolidate your debts to, you could reduce the overall amount you have to pay back.
- your loan is a higher rate of interest than your original debt, or your repayments are over a longer term, you may pay more interest overall.
To borrow more on top of your existing loan, please call us.
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If your circumstances have changed and you’re struggling to repay your loan, please visit Money worries.
You can't miss a payment and 'catch up' the following month. If you miss a monthly payment, or are late in making a payment, you'll be charged a late payment fee of up to £25. Details of the missed/late payment will be registered with a credit reference agency and could affect your credit rating.
If needed, they can hold a full financial review with you, offering information and suggestions on how they think you could save money. Please note that the Money Management team can't change or delay your loan payment date or amount. They are not in a position to discuss the current terms and conditions of your loan.
If you don't feel the above information can help and still need further advice, visit Free Independent Help and Advice for more information.
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If you make an early settlement in full or part, you might be entitled to a rebate. This means you wouldn’t have to pay all of the interest.
You can repay your loan in full at any time during the repayment period. We may charge up to 58 days interest.
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If you're an existing Bank of Scotland Internet Banking customer, you can view your current loan balance online. Please be aware that this may not be your final settlement figure.
Or, to find out the outstanding balance and settlement figure on your personal loan give us a call.
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Bank of Scotland Personal Loans Service Centre, PO BOX 952, Newcastle upon Tyne, NE27 9DH.
Extra payments
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You can make extra payments to your loan, which will reduce the interest you’ll pay and may reduce your loan term. Payments can be made from a Bank of Scotland current or savings account with Internet Banking. If you make extra payments to your loan, you must continue to pay your monthly repayments. Our calculator can help by showing you how.
Log in to Internet Banking and make an extra payment by selecting your loan from the account overview page.
If you’re not registered for Internet Banking, you can register today. It should only take a few minutes and you should be able to log in as soon as you’ve finished.
You can also visit us in branch, or if you’d prefer to speak with someone on the phone, give us a call.
Applying for a personal loan
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To apply for a personal loan, you must:
- Have one of the following Bank of Scotland products: bank account (except for Easycash) held for at least one month
- Be age 18 years or over and either be in paid employment or have a regular income. Retirees must have an income from a private or State Pension, or (a combination of) both
- Not be in full-time education
- Have a bank/building society account
- Have a permanent UK address
- Not have been declined for credit in the last month
- Not have a history of bad credit such as arrears, county court judgements (CCJs), default or bankruptcy.
- Have one of the following Bank of Scotland products: bank account (except for Easycash) held for at least one month