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Important information about our loans
A quick overview
A loan can be a convenient way to borrow a fixed amount and repay it by spreading the payments over a set period (the Term). With a loan, interest is charged on the amount you borrow so you'll need to pick an amount and term that you can afford.
A decision to offer you a loan is based on your individual circumstances. All loans are subject to terms and conditions.
Key information for our Bank of Scotland unsecured loans
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Interest charging information |
The interest rate is fixed and guaranteed for the life of the loan. Interest is charged and added to your loan account each month. We charge interest for the complete duration of the loan including the period between the start of your loan and your first repayment. |
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Repayment information |
Payment is by direct debit. The payments are monthly until the loan is repaid. |
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Repayment period |
You can choose to repay your loan over 1 to 7 years. |
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Amount of loan available |
A Bank of Scotland Personal Loan is available to existing customers from £1,000 to £50,000. |
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Arrangement fee |
There is no arrangement fee. |
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Default fees |
If you miss a monthly repayment, your loan will be transferred to our Collections department and we will charge you £25. If you continue to break the agreement you may be subject to further charges. |
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Early settlement |
If you want to settle early, we’ll give you a quote. We may also apply an early settlement adjustment to your loan. This means that we may charge up to 58 days interest on the loan. |
To apply for a loan, you must:
- Be an existing Bank of Scotland customer
- Be over 18 years old
- Be in paid employment or have a regular income
- Not be in full time education
- Have a bank/building society account
- Be a UK resident with a permanent UK address (excluding the Channel Islands and the Isle of Man)
- Not have been declined for credit in the last month
- Not have a history of bad credit such as arrears, county court judgements (CCJs), default or bankruptcy
Certain purposes of loan may be excluded; please visit ‘What can I borrow for?’ in the Loans FAQs.
The rate you are offered will depend on credit assessment procedures, your personal circumstances and other related factors.
We charge interest for the complete duration of the loan including the period between the start of your loan and your first monthly repayment.
If you are in breach of your Bank of Scotland loan agreement we may take any money you owe us from any other Bank of Scotland accounts which have a credit balance, including a joint account providing the conditions allow and there are sufficient funds.
Products and offers are subject to conditions and can be withdrawn without notice.
Loans are provided by Bank of Scotland plc.
Registered Office: The Mound, Edinburgh EH1 1YZ.
Getting started online
A look at the details
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The main benefit of a personal loan is access to the money you need to pay for the things you want. With a Bank of Scotland Personal Loan you can borrow between £1,000 and £50,000 and spread the repayments over 1-7 years. You just need to make sure you can meet the repayments over the term you choose.
Personal loan interest rates can either be variable or fixed. The interest rate on a Bank of Scotland Personal Loan is fixed, so you can budget with confidence knowing your payments won’t go up.
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The biggest commitment you will have is making your repayments for the period of your loan. So think carefully about how much you can afford to repay without making life hard for yourself. Remember, you have to pay interest on what you borrow, so you’ll pay back more than the initial amount you borrowed.
To make life easier, your repayments will come out of your account automatically every month by Direct Debit. You just have to make sure you've got sufficient funds in your account.
The term you take the loan over will affect the size of your repayments, so if you want smaller repayments, you should repay your loan over a longer term. Just remember, the longer you take to repay your loan, the more interest you’ll be charged overall.
You should also consider how you’ll manage to make your repayments if your circumstances change.
When you apply for a loan, we’ll usually ask a Credit Reference Agency for your credit history. If you apply for lots of credit, this could have a negative impact on your credit rating.
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As long as you keep up with your repayments, there's no need to worry.
But if you breach your loan agreement, we may charge you our costs in recovering late or missed repayments. To recover debt we may also take any money you owe us from any other account you hold with us. You should also be aware that this could affect your rating with credit reference agencies.
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If you have savings, you might be better off using this money instead of taking a loan. That's because the interest you pay on a loan might be higher than the interest you earn on your savings.
Don’t forget, there are other types of borrowing that may suit you better, such as an authorised overdraft or a credit card. If you are a home owner, you may prefer a secured loan which uses your home as security. This usually gives you a lower rate of interest, but please be aware if you cannot repay it, you could lose your home.