Hi, just after some advice

RichardFrost

i dont know a hell of alot about banking and all the terms and things

i have an outstanding loan with barclays for about 3k(ish) left to go.
what i need to do is get another loan so i can buy some equipment to start a small business for myself but im unsure if i can get another loan with barclays, pay off the existing with that and use what's left over for my own evil doings

my mum seems to think you cant pay a loan off with another loan, so im a bit confused.. i didnt think it would be a problem really seeing as the bank would be collecting 2 amounts of interest on some of the original loan i have

i cant afford to pay 2 loan repayments a month and i need a few thousand to buy this equipment..

so my question is, can i get a loan to pay of my existing one and keep the difference?

~Beanie~

Yes you can.

RichardFrost

cheers, i thought so =]

Kavanne

RichardFrost wrote: »

cheers, i thought so =]

You can but of course you will need to apply and you may or may not be eligible for the extra borrowing. Only barclays can tell you though obviously

30dirtybirds

you can but really watch the APR figure on the second loan. I'd bet a huge wedge of cash on the fact that you'll be paying way more than just getting a small second loan for your new needs.

I did this a while back and to cut a short story short I took out a "extra" loan for £4,000 ( £16,000 loan to cover £12,000 existing plus £4,000 for me)and am paying an extra £6,500 interest on that £4,000 (total £10,500) if I'd just got a smaller loan the interest would have been <£2,000.

Don't rely on the banks to give impartial advice either...

RichardFrost

i guess i can look on barclays website but im sure you nice people can explain it to me in a way that's easier to understand!

what are the advantages of having a business loan compared to a personal loan?


oh, i suppose i cant get a business loan and use some of that to pay of the last 3k of my personal loan can i.. hmmmm...

countrygirl84

Hi. I used to be a manager of one of the high street banks so I'll tell you as much as I can.
1) Yes, you can repay a loan with another loan;
2) The interest rate differs depending on how much you borrow usually so therefore the more you borrow, the lower the rate. Although if it's a while since you took out your last loan then the rates may have changed a lot since;
3) Check how much it will cost you to repay your old loan as normally you are charged an 'interest recalculation' and it may work out a little expensive;
4) Also, speak to your business manager about taking out a business loan as I don't think you can combine your personal loan with it becuase then you are combining business with personal;
5) On the otherhand if you try and take a personal loan for business purposes then they may decline that also.

I know that probably makes no sense to anybody else but it does in my mind. Ha ha.

countrygirl84

I know everybodys advice is different but if I were you I would take out a larger loan to repay my old loan plus the new money. The reason for the loan would be to buy a new car or something (not for business reasons) so they couldn't decline you for that purpose. Or speak to a business manager about a business loan but I think they can be more strict than the personl side of things.