Co-Operative Bank Small Loans
Good:
You can apply online and they will give you a decision within 24 hours
Bad:
Have been known to have larger early settlement fees than stated on their website
Verdict:
The less you borrow, the higher interest rate you will be charged - only borrow what you need so if you only need a small amount, approach your primary bank first
The Co-Operative Bank offer loans between £2,000 - £7,450. Their rates are fixed for your loan term, there is no arrangement fee and if you hold a current account, you don't have to make repayments for the first 3 months.
You can apply online or over the phone. After filling out their online application form, they will check your details and credit check you to make sure you are eligible. They will then contact you to arrange for the relevant papers, including your loan agreement and a standing order mandate, to be sent to your home address. After you have thoroughly read, signed and sent back the relevant documents (you may need to send additional identification) and everything is confirmed, The Co-Operative will fully assess your application to give you a final decision. They will inform you of their final decision via a confirmation letter within 1-2 days. If accepted, they will then transfer the money into your account within 3-4 working days.
While not the most competitive of interest rates, it is reasonable. The Co-Operative are well know for their excellent customer service, with many people on other review sites saying that they are one of the most efficient companies to deal with. The Co-Operative base their service hugely on ethical policies and putting their customers first and we have no reason to discredit them as the reviews don't lie! The rates stay fixed for the term of the loan so you shouldn't get any unexpected jumps in payments unless you start missing them.
Loan Calculator (Representative 13.9%APR)
Loan Amount £
Loan Term months
Monthly Repayment
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I took a 3 yr loan out with the Coop and it's the worst thing i have ever done. I changed my bank account details 2 years into the loan and gave them my updated details for the new account. I received a letter and penalty payment from them a month later. They told me that i had defaulted on my loan payment. I explained that i had given them my new details but they never recorded it. Again, on the phone, i passed on all my new information. A month later i received another demand and a penalty notice. I ended up borrowing the money from my parents to pay off the loan and get them off my back. Now my credit rating is affected but at least i am rid of them. Stay clear of the Coop!!!
i got realy good expirence with co-opretive bank
i got realy good expirence with co-opretive bank
Received loan 24 months ago and have been paying it by standing order. This month Coop said they didn't receive my payment, told me I now had a default on my credit record and demanded I pay the installmanet again. They would not accept that they had made a mistake. What followed was nearly a week of threatening phone calls, 'pay up or your credit rating will suffer', until they finally realised their mistake. Avoid.
Would I recommend? Yes, absolutely, I'm no longer an in financial difficulty because I just don't think this level of service is widespread yet, they do care about their customers and they will go out of their way to resolve issues for you. Seem to be very popular with the older population because of this. Their telephone banking is superb, their internet banking is straightforward and secure.
I opted for a £3,000 loan from the Co-Op and was offered an APR of 14.3%!!!! I couldn't believe it because I have a good credit history. I got offered a loan elsewhere for a smaller APR which I was happy with.
My fiance appliced for a personal loan from Co-op bank online, which stated their typical APR was 8.9%. My fiance has a very good credit history and when we received the application form in the post we were shocked to find that the APR we would have to pay was 14.2% which increased our monthly payment by 17%. Their maximum APR stated in the "Summary Box" online was 15.9%. Also, the website summary box states that the early repayment fee is "equal to one months's interest calculated on the balancing outstanding". When we read through the agreement, the cost of this was actually over £1000 when we thought it should be less than £150.
Loans up to £7,450 - 7 years
- You must have a bank account with direct debit facilities
- You must have a good credit history
- You must have been a UK resident for 1 year or longer
- You need: your home address from the last 3 years, your bank account details (sort code and account number), your employer's name and address and details of any Co-Operative accounts you may hold
- You must be between age 23 and 69 to apply
- You must be in full-time, part-time or self-employment earning at least £10,000 per year
- Receive your documents by courier quicker - £50.00
- Receive your documents quicker by CHAPS - £25.00
- The interest owed on the instalment from when it is due until it is actually paid
- One month's additional interest calculated on the balance outstanding will be payable
