Short term loan

thespacecowboy

I need to secure a short term loan of around £12,000. I have a Cahoot flexible loan so have requested an increase to this, but need a backup plan.

Only need the loan until around October.

Therefore need no redemption charges, happy with a higher interest rate in the interim.

Any suggestions? If I make the term 3 months on moneysupermarket, repayments are £3k a month Will be paying off interest each month, then whole amount around October, perhaps earlier.

Thanks

Robert

chinup_3

robert. unsecured loans have or shouldn't have redemption penalties so it can be paid any time. part of why they are those sort of rates. don't have to tell them its for three months to 'cut your own nose off 'surely ?!

thespacecowboy

Thanks. The one I looked at (alliance and leicester) did have a redemption on it.

I've also looked at Zopa, which Martin mentions in his short term loan article. 6.8% with no redemptions, only £70 fee from Zopa. Seems a good deal, any comments on this?

daviduk_2

Yes i took one out with Zopa and yes they have no penalties for early repayment. Actually if you read lenders forum on the zopa site will see the biggest complaint from the lenders appears to be that borrowers often pay early and don't even get charged the full interest due up to the time they pay it off. On one of the car loans questions is a link that also got me £30 off. Think it was about 3/4 weeks ago.

thespacecowboy

Thanks Daviduk. I'm likely to pay off most within 2 months (not all) so it should be minimal interest