Personal Loans / Information Centre Information Centre - Personal Loans The personal loan market has grown exceptionally over the last few years. As with all financial products, it pays to shop around, as the difference in interest rates between companies may look small in terms of differing monthly repayments, but over a five year loan it can add up to hundreds of pounds. It is also important when getting a quote, that you get the total cost of credit, or the total amount of interest payable the term of the loan. For example, on a €10,000 loan over five years, you would typically expect to pay about €2,600 in interest. If payment protection is included in the loan, you may end up paying interest on the loan protection policy also, as you are basically borrowing the money to buy that insurance cover. The cost of payment protection varies from lender to lender, and many people don't bother buying it. A loan protection policy offers you the security of knowing your loan would be cleared in the event of death, disability or redundancy. Payment protection is recommended by most lending institutions, as most of them make a commission on it and also protects them from the risk of bad debts. You need to decide if you need it, and the price you are willing to pay for this security. With personal loans on a variable rate, the monthly repayment is generally fixed, and depending on which direction interest rates go over the term, the borrower may have some extra payments to make or may clear the loan early. Where your income is unpredictable, it is important to select a flexible type of loan, leaving you free to make lump sum repayments or pay the loan off early. What Next? PrimaFinance Allows you to search the market for a competitive car loan or to apply online.