Ireland’s best personal loans
Whether you’re buying a car or a holiday, a personal loan can be a quick and simple way to borrow money. Compare loan rates and terms here to find the best loan for you.
What can you use a personal loan for?
A personal loan can be used for any purpose. Some of the most common reasons for taking an unsecured personal loan are:
How much can you borrow?
The maximum you can borrow as a couple is up to €75,000, but people typically take out a personal loan for smaller amounts, between €1,000 and £10,000.
A larger loan and longer term may take longer to approve, and you may not be able to complete the full application process online.
How much do personal loans cost?
It depends on how much you plan to borrow, but the main factors that influence costs are:
- Interest rate: The higher the interest rate, the more the loan will cost you.
- Amount borrowed: Small loans tend to have a higher interest rate than larger amounts, but you’ll pay more interest over the term.
- Length of the term: The longer the loan term, the more interest you’ll pay on your borrowing.
- Your credit history Your credit rating also affects the interest rate you’re given. Here’s how to check your credit record.
How to get the best personal loan
The best personal loan will allow you to borrow the amount of money you need, will have affordable monthly repayments and the lowest interest rate possible.
Using a personal loans comparison tool or broker to help you shop around for the best rates in Ireland is a great way to find the right loan for your budget.
To help you find the best loan for your financial needs, think about:
If you take all these factors into consideration before applying for a loan, you are more likely to find the right balance between the repayment term and an affordable monthly cost to get the best loan.
Use our loan repayment calculator to help you work out what you can afford.
Applying for a personal loan
You can apply for a loan in various ways.
- Online
- Via a banking app
- Over the phone
- In person at a bank branch
If you want to talk through your options and costs it may be better to apply over the phone or in person. If you’re clear about your needs, then you may benefit from better rates if you apply online.
Documents you need
If you apply with your current bank, they will only require documentary evidence of your Personal Public Service Number (PPSN). This is required by the Central Bank of Ireland’s Central Credit Register for customer identification.
If you apply with another lender or finance company, other eligibility checks will need to take place in addition to your PPSN. Documents to provide will include:
You will need a current account with the facility to set up a direct debit or standing order and fit other eligibility criteria the lender sets.
Alternatives to personal loans
If you don’t want to apply for a personal loan or are finding it hard to get approved for a personal loan; there are alternatives.
- Credit cards A 0% purchase card could offer a cheaper alternative to a personal loan. It’s a cost-effective way to borrow if you can repay the credit within the 0% purchase period.
- Secured loans This loan requires security against it, like a property. They’re easier to get if you have bad credit but own a property. Your home is at risk if you are unable to repay the loan.
- Guarantor loans This works like a personal loan, except when you apply you have to provide a guarantor that undertakes to make payments for you if you default.
- Buy Now Pay Later A point-of-purchase option available from most online retailers. The credit is often interest-free for a time, which you’ll repay in instalments.
Learn about how loans work in Ireland in our Complete Guide to Loans.
Personal loans FAQs
Can I get a payment holiday on a personal loan?
If you feel you may struggle to repay your personal loan due to a change in financial circumstances, then contact your lender immediately. They may be able to arrange a repayment break for up to three months, but check it doesn’t affect your credit score.
Your payments will still accrue and you will need to repay the deferred payments including interest when the repayment break is over. This means that you may pay a higher amount per month than before the deferment period.
Can I get a personal loan with bad credit?
Yes, you can, but you will likely pay higher interest and the loan will be more expensive.
You may find that banks are more reluctant to lend to people with bad credit, but there are many specialist lenders who may be able to help.
A good first step to getting a personal loan with bad credit is to check your credit score and work on repairing it so you can get better credit facilities in future.
How do I get a Credit Union loan?
To join a credit union, you must fall within a ‘common bond’.
This means you need to:
- Be living or working in a particular area
- Be employed by a company that has a staff credit union
- Be a member of a professional body that runs its own credit union
You can find out more at the Irish League of Credit Unions.
Is a personal loan cheaper than a credit card?
It depends on how much you borrow and how long for.
Credit cards allow you to borrow to a pre-set limit which can typically be anything up to €10,000. You choose how much you pay each month and the quicker you pay off the debt, the less interest you pay on the credit.
A 0% purchase card or balance transfer card used wisely can make this a cheaper option for borrowing smaller amounts of money for a short amount of time. You also get greater flexibility over repayments so you can pay off your debt sooner without early repayment penalties.
What does APR mean?
APR is short for Annual Percentage Rate. It’s a calculation of the overall cost of your loan and takes into account all the costs during the term of the loan including set up charges and the interest rate. Any extra fees are added to the loan amount before interest is calculated.
It’s a legal requirement for credit lenders to show their interest rate on borrowing so an easy and fair comparison of interest rates can be made between finance companies like banks and lenders.
Why is the Typical APR different?
The Typical APR is an advertised rate that the majority of people approved for credit will be offered. If your credit rating is poor or you have a low income you could pay more than the typical APR being advertised.
For personal loans, the Typical APR may also differ depending on the size of the loan (for instance, 12% APR for loans up to €3,999, and 8% APR for loans of €4,000 to €9,999).