Personal Loans Both Expensive And Scarce
Borrowers looking to acquire finance by way of a personal loan during the coming months may have cause to rethink their intentions, if findings from a recent study are anything to go by.
According to newly released statistics from financial trends institution Defaqto, the typical cost of personal loan has increased by close to 5% over the last 2 years in spite of the fact that the base rate of interest has been in gradual decline during the last 12 months.
The firm has also revealed that borrowers of comparatively low value loans are most likely to become caught up in this trend, suggesting that advances of around ten thousand or less appear to be where the majority of lenders are applying the most noticeable price increases to their products.
It has also been noted that the rate in which consumers are rejected for their loan has increased considerably during the last 12 months, with some lenders identified as refusing up to 70% of applicants at any given time.
As a result, issuers of credit cards are reported to have noticed an increase in demand for their products, as borrowers look for alternative ways to obtain the funding that they require.
