Loans FAQs

Who can apply for a Personal Loan?

To apply for a personal loan you must:

  • Have one of the following Bank of Scotland products: bank account (excluding Easycash) held for at least 1 month
  • Be aged 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.
Personal Loan
  • How much can I borrow?

    Our unsecured Personal Loan is available between £1,000 and £50,000. The amount you can borrow is based on your personal circumstances.

    What can I borrow money for?

    You can use a personal loan for almost any purpose such as; home improvements, buying a car or to consolidate your existing borrowings.

    We will not lend for:

    • Speculative purchases, for example: gambling, investments and share purchases
    • Any illegal purposes
    • Business related purposes
    • Purchase/Lease of land or property, either full or part purchase (including deposit)
    • Timeshares/Holiday Clubs

    How long can I take to repay the loan?

    You can take between 1 to 7 years to repay your loan.

    The period of time you take the loan over will affect the size of your repayments, so 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.

    What is credit scoring and how do you use it?

    Credit scoring is a method most lenders use to assess whether they'll lend you the money. We'll score the information you provide 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, who keep records on your borrowing and payment habits. This includes details on how much credit you have outstanding as well as information on how many missed or late payments you may have made.

    If you have a number of missed or late payments you may be considered as 'high risk' and we may refuse to offer you a loan, or we may still 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.

    What do you mean by representative APR, is this the rate that I will actually get?

    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.

    Is there a fee for arranging my loan?

    No, there is no fee for arranging your loan.

    When will I have to make my first repayment?

    Payment is by direct debit. The payments are monthly until the loan is repaid.

    What's the difference between a 'secured' and an 'unsecured' loan?

    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.

  • Can I top-up my loan?

    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 will 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 calculate 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. If 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. However if 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, call us on:

    0345 600 4611, option 1


    What if I can't repay my loan or am already in arrears?

    If your circumstances have changed and you're struggling to repay your loan, please call us in confidence on 0808 145 0676 Lines are open 8am-9pm Mon-Fri, 8am-4pm Sat, 9am-2pm Sun.

    You cannot miss a payment and 'catch up' the following month. If you miss a monthly payment, or are late in making a payment, you will 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 however that the Money Management team cannot change or defer your loan payment date or amount, and 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, the following third party organisations should be able to answer your questions and suggest suitable courses of action.

    Citizens Advice


    Stepchange Debt Charity

    National Debtline

    Other ‘help’ organisations may charge a fee, so it’s worth checking before you approach them.


    What is early settlement?

    If you make an early settlement in full or part, you might be entitled to a rebate, which 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.


    How do I find out how much is outstanding on my loan?

    If you're an existing Bank of Scotland online banking customer, you can view your current loan balance online, however please be aware that this may not be your final settlement figure.

    Alternatively, to find out the outstanding balance on your personal loan just call our Customer Services team on 0345 604 7291, option 3. They’ll be able to give you your final settlement figure.


    What is your address if I want to write to you?

    Bank of Scotland Personal Loans Service Centre, PO BOX 952, Newcastle upon Tyne, NE27 9DH

  • Making additional payments

    You can make additional 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 additional payments to your loan you must continue to pay your monthly repayments. Our calculator can help by showing you how.

    Log onto Internet Banking and make an additional 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 on as soon as you’ve finished.

    Alternatively you can call us on 0345 604 7291 (8am to 10pm, 7 days a week) or visit your nearest branch