The Irish Financial Services Regulatory Authority has revealed that consumers can make savings of several hundred euro by shopping around for personal loans.
The details come in the Authority's first independent personal loans survey, published today. The survey will be published every six months from now on.
IFSRA's Personal Loans Survey, which compares the costs of borrowing over different terms, is based on the main lenders in the Irish market.
The survey reveals that on a €10,000 fixed rate five year loan, the difference between the least and the most expensive loan amounts to over €800. On a one year €2,000 variable rate loan, consumers can save over €250.
Consumer Director Mary O'Dea reminded consumers to look at the total cost of credit when taking out a personal loan, and said borrowers do not have to take out a loan with their current financial institution if better value or service is available elsewhere.
She also adds that money can be saved by repaying the loan over the shortest possible term, as the amount of interest to be paid increases with the term of the loan.
The IFSRA survey says that payment protection on a personal loan typically covers some repayments in certain circumstances, which as redundancy or illness. Such policies also usually clear the loan in the event of death.
It also says that personal credit history can be accessed by all lenders through the Irish Credit Bureau and will be taken into account by the lender in deciding where a loan will be offered to the applicant.
IFSRA has produced a free guide to Personal Loans and Credit, which has information for both new and regular borrowers and covers a range of lending products for short, medium and long term needs.
