The Egg Loan offered by online financial services provider Egg is a flexible personal loan that offers you the option of early repayment with no penalty - you can make additional payments at any time and you can also increase your payments at any time. This is good news for those of us who are able to pay the debt off in this way.

The quicker you pay off your Egg Loan the less it will cost you. Egg offers this facility - many lenders dont. With some lenders you can be faced with the equivalent of up to two months interest if you choose to pay your loan off early.

On the other hand you may want to take advantage of the Egg Loans repayment breaks. The Egg Loan allows regular payment holidays; so long as youve made three consecutive monthly repayments you can take a break for up to three months in any 12 month period. This can give you extra flexibility in your budgeting which could be useful if you are self-employed for example.

However you must remember that while you are not paying back what you borrowed interest is still being charged on the outstanding debt. A repayment holiday is not the same as an interest holiday! There are no hidden fees with the Egg Loan but if you take an involuntary repayment holiday - thats to say if your direct debit repayment is not made without prior arrangement youll be charged an extra £20 with your next repayment.

How a Egg Loan works

With the Egg Loan you may choose how much you want to borrow - any amount to the nearest pound between £1000 and £25000 and you can choose how long you take to repay your loan between six months and seven years.

The Egg Loans quoted typical 7.9 APR is reasonably competitive but it is not the cheapest rate available and youll need to be looking to borrow more than £5000 to get it. Egg operates a banded interest rate and loans between £1000 - £4999 are charged a typical 14.9 APR.

In keeping with its flexible approach Eggs loan payment protection plan should you opt for it allows you to choose what kind of cover you take. You may choose whether to cover yourself against accident and sickness or unemployment or both. With either policy life cover is also included.

Egg was originally created by financial services giant Prudential in 1998 as new kind of online personal finance business. Egg became a quoted company in its own right in June 2000 but Prudential with 79 of the shares is still firmly in control of the business which now has around 3.6 million customers.

You may be thinking of applying for an Egg Loan because of the flexibility that it offers. However before you decide finally you should always shop around. The Egg Loan may well be right for your circumstances but other loans may suit equally as well and may even be cheaper.

Moneyextra.com recommends you take independent financial advice before acting on any article

2009-03-03 09:30:49 © Moneyextra.com

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