Post Office Loan

You may borrow between £2,000 - £25,000 with a fixed cost, unsecured personal loan from the Post Office. You must be over 21 years of age to apply for a Post Office loan and have no County Court Judgements (CCJs). You also need to be able to show that the amount you wish to borrow is less than 75% of your gross annual income. You may opt to repay the loan over periods from 12 months to seven years.

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Unlike most lenders, the Post Office loan allows you to take advantage of up to two monthly repayment holidays a year. Payment Holiday month(s) must be chosen when applying for your loan. The first due month of your loan repayments may not be selected as a holiday month - in other words you cannot defer the first payment as well.

Payment Holiday months cannot be consecutive and once chosen, repayments will not be collected during those months for the term of the personal loan. Payment Holiday months(s) cannot be varied from year to year. Your repayment amount will increase for the remainder of your term to reflect the holidays. The Post Office loan does not allow lump sum repayments.

The Post Office personal loan has tiered interest rates in four bands but does not operate a risk-based pricing policy - this means the APR you will be charged will depend solely on the amount you want to borrow. If you are accepted as a customer for the Post Office loan, the rate you see is the rate you will get.

The Post Office is a wholly owned subsidiary of Royal Mail Group. It has a nationwide network of around 16,000 Post Office branches and is the largest Post Office network in Europe and the largest retail branch network in the UK handling more cash than any other business. Post Office loans are provided by the Bank of Ireland.

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Last updated May 2008

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