Personal Loan
Interest Bearing Credit
Product overview
What is Interest Bearing Credit?
A personal loan on a fixed rate, over a fixed time that allows your customers to pay off their purchase in equal monthly payments:
- Your customers repay through equal monthly payments over a set amount of time
- The loan isn’t secured against the product purchased
- Interest is added to each monthly payment
- Customers can pay off the loan balance at any time but there may be an early settlement fee applied
Benefits for your customers
- Enables customers to make larger purchases earlier
- Useful for planning personal cash flow
- Helps your customers plan their budget which can include improved product specifications
- Fixed rate of interest to pay
Explaining IBC to your customers
Representative example
| Item value (cash price) | £1,200.00 |
| Deposit | £0.00 |
| Total amount of credit | £1,200.00 |
| Duration of agreement | 12 months |
| Representative APR | 9.9% APR |
| Annual rate of interest | 9.9% p.a. |
| 12 monthly payments of | £105.21 |
| Total amount payable | £1,262.52 |
Example is for illustrative purposes only
Who can apply?
To be eligible to apply for one of our finance products, your customers must be:
- 18 years or over on the date of application
- A permanent UK resident for a minimum of three years and either:
- In regular, permanent employment working a minimum of 16 hours a week (including students)
- Self-employed
- Retired from regular employment and aged 50 years or older
- In receipt of incapacity benefit
Subject to application, financial circumstances and borrowing history