How to choose the right loan

A small change to your loan term could make a difference to the rate we offer.

For example, borrowing for 37 months instead of 36 could give you a lower interest rate.

Before you apply for a loan, think carefully about what you can afford to pay back each month. You will not be able to change the loan amount or term during the application.

We have different rates for different loan amounts. In some cases, borrowing more could mean you pay back less.

It’s worth checking whether you could get a better rate by increasing or decreasing the amount you borrow. You can do this by getting multiple personalised quotes through completing our application several times or by using our loan calculator.

Depending on the rates you're offered, for a 4-year loan, you could borrow:

• £4,950 at 14.3% per annum and pay back £6,426.24, or
• £5,000 at 7.9% per annum and pay back £5,817.12.

In this example, you'd save £609.12 by borrowing £50 more.

Each loan amount has its own interest rate range. This is the highest rate and the lowest rate we may charge. The interest you’re charged on your loan will sit somewhere in this range.

We’ll confirm your interest rate during your application.

A loan might not always be the best way to borrow the money you need. Here are 3 other options to consider.

An arranged overdraft is often used for short-term borrowing, emergencies and unforeseen costs.

A credit card is often used for short-term borrowing and spreading your repayments. 

If you have a Nationwide mortgage and are looking to borrow over £5,000, you can apply to borrow up to 90% of the value of your home.

The interest rate you pay may be lower than on an unsecured loan, but you may pay this back over a longer time. This may make the total cost of your borrowing more.

Think carefully before securing other debts against your home.