So how much does a £2000 loan repayable over 2 years cost?

Written in December 2013. I have just checked the links again in April 2017 and the difference in repayments is still staggering!

I noticed that the people behind the 118 118 directory enquiries service were now offering personal loans on-line at 118 118 MONEY. They offer loans from £1000 to £5000 repayable over twelve, eighteen or twenty four months.

On the front page of the web site is a tool to calculate illustrative repayments. It is initially set to a £2000 loan paid back over 2 years. I looked at the total amount repayable and the representative APR interest rate quoted and was quite shocked.

Wondering how this would compare to the peer-to-peer lender Zopa I headed over to their web site. They also have an on-line calculator which gives an illustration of what repayments might be.

Once again I looked up a £2000 loan with repayments over 2 years. The difference in monthly cost was striking, as was the overall amount repayable.

I should point out at this point that I know Zopa are reasonably choosy who they lend to, and that they charge variable interest rates that might be higher than the illustration depending on the perceived risk.

This quick exercise does show how important it is to shop around if you are looking to borrow money. Why not go over to Zopa and 118 118 MONEY and play around with the figures to see the difference for yourself.

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