For centuries, people have been indebted to one another. It was, however, only in the last few that institutions formalized loans and regulations were put in place to protect both the lender and the borrower. Now, loans form part of daily life and often forms part of a financial obligation in many households. Bank of Ireland Loans provides customers with flexible funding options for various needs. This review takes a closer look at these products to determine whether they are up to standard on a global scale.
Another bank that offers a range of loans, is Wells Fargo. Read more in these here.
Key Aspects to Consider When Taking Out A Loan
Customers who have a good credit rating and wish to apply for finance, have an obligation to explore the finance options fully in order to determine whether the product is well suited to them. Furthermore, it is imperative the customers weigh up the advantages and disadvantages of finance when there are other alternatives such as savings. Some things to bear in mind include:
Finance Is Expensive
The accumulation of interest over the chosen term can add a significant amount to the total loan amount payable. Customers who are able to save for the item instead will find they pay less over the long term. This is even on loans that offer customers low interest rates.
Finance Affects Credit Scores
Every time a customer applies for finance, the credit score is affected. This may cause the customer to experience a drop in their rating, which could affect future application rates. Also, customers who don’t pay their installments on time or not at all, stand the risk of reduced credit scores.
Overindebtedness Could Cause Financial Pressure
Although banks are tasked with doing a proper financial analysis to determine affordability, customers also have a responsibility to declare all their financial obligations. It’s important to determine the threshold when signing up for finance, and not exceeding it. Loans are designed to improve the quality of life, not reduce it.
A Legal Obligation
Customers who sign a loan agreement are tasked with the responsibility to meet their payments. If these obligations are not met, the customer is in breach and the financial institution could take steps. This could include a summons which could result in customers losing their possessions. This is also an expensive process and customers are liable for legal costs.
About Bank of Ireland
Bank of Ireland came about in 1783 and was based in St. Mary’s Abbey in Dublin. By the mid-1800s, the bank managed to expand their operations across Ireland and branches opened in Cork, Belfast, Clonmel, Waterford, Newry, Westport, and Londonberry. With an increased awareness of the advantages of banking, the next century proved to be a period of growth. By 1920, the bank had 75 branches in operation.
During the next few decades, the bank was instrumental in boosting the economy after the ravages of war. It was also a time of further investments and acquisitions and mergers soon followed. New product launches and the burst of innovation due to technological advancements also made additional opportunities possible.
After the financial collapse of 2008, the bank was forced to seek assistance from the government to boost their liquidity. Currently, the bank is focusing on simplifying banking for their customers and increasing profits.
For a full review on the Bank of Ireland, read here.
Bank of Ireland Loans Product Offerings
These loans offer clients flexible financing when they need it most. Furthermore, it offers a structured repayment term which makes it easier for customers to plan their budgets.
- Customers have access to variable interest rates that start at under 10%.
- Also, the repayment terms range from 1 to 5 years.
- Customers have the option to defer their first three monthly repayments. However, customers will pay more than they would have over the standard term.
- The loan amounts range from €1,000 to €65,000.
- Once the loan is approved, the funds are paid over to the Bank of Ireland current account.
- Finally, customers have access to a quick quote calculator to estimate how much they could borrow.
Customers who wish to finance a vehicle will find this loan type to be suitable. Furthermore, they benefit from competitive variable rates from as little as 7.5% APR.
- The loan type offers customers the opportunity to repay their loan over 1 to 5 years.
- Also, customers have the option to defer their first three monthly payments. This will, however, cost them more over the period than ordinary repayments would have.
- The loan amounts range from €1,000 to €65,000.
- Finally, Bank of Ireland customers benefit from quick and easy online applications.
Home Improvement Loan
Renovations and extensions can cost quite a bit of money and this is the right type of finance to take care of them. Also, this is ideal for those who wish to convert their attics or take on other home improvement tasks as well.
- Customers have access to benefits under the Home Renovation Tax Incentive Scheme.
- Furthermore, customers are not required to pledge their savings in order to borrow.
- There are no hidden fees or charges on this loan agreement. Also, customers can make additional payments without having to worry about penalty fees. This allows customers to pay less over the term than they would have with their ordinary installments.
- Customers enjoy variable interest rates from as little as 7.5% APR.
- The loan is repayable over a period of 1 to 7 years.
- Customers can defer their first three monthly repayments. This will, however, cost more over the period that normal repayments would have.
- Finally, once the loan is approved, the funds are transferred immediately to the Bank of Ireland current account.
This loan type assists customers in making important life choices. This tends to happen after graduation, which makes this loan ideal. This funds items such as a small car, a well-deserved break, or even a new wardrobe to enter the professional world.
- Customers enjoy competitive variable rates from just 5% APR.
- The loan repayments take place over 1 to 5 years.
- Furthermore, there is the option of flexible repayments as customers choose to repay weekly, fortnightly, or monthly.
- Amounts between €1,000 and €5,000 enjoy a rate of 5% APR. Higher amounts are at alternative rates.
- Customers have the option to defer their first three monthly payments, however, this costs more over the period of the loan.
- Finally, customers will need to demonstrate that they are graduates when they apply for the loan.
College Finance Loan
Parents who need additional funds to cover the costs of their children’s undergraduate Student Contribution Charges will find this loan useful. Furthermore, this loan offers a simpler and more cost-effective payment solution for parents.
- There is the option to borrow €3,000 each year to cover the Student Contribution charge. This loan is available to cover fees over a 4-year undergraduate term.
- Customers enjoy a competitive variable rate of just 7.5% APR.
- The loan option allows a shorter repayment period at any stage, however, cannot choose to repay over a longer term.
- A new loan application is required every year.
- Furthermore, the application must be resident in Ireland and the guardian or parent of the full-time undergraduate student. Also, they must attend applicable colleges.
- This loan type is not to fund re-sit examinations or postgraduate studies.
- The maximum loan term is 8 years.
- Finally, parents can choose to repay the loan over various periods and in each case, the term of the loan is from the year of the last draw-down. These terms are 24 months for year 1, 36 months for year 2, 48 months for year 3, and 60 months for year 4.
This loan is suitable for students who need to cover everyday college expenses or to cover their student contribution charge.
1% Student Loan
This loan type only charges an APR of 1%. Also, customers have the option to defer loan repayments. Finally, it carries a loan term of 12 months.
Standard Student Loan
This is a slightly pricier loan type, however, offers flexible repayment options. The term is anywhere from 1 to 5 years and customers enjoy a variable rate.
Preferred Faculty Loan
This loan offers students the option to borrow without having to worry about interest. This is for specific faculties only. Also, customers enjoy a maximum loan term of 7 years. Finally, the loan amount can go up to €2,500 per annum.
This loan offers students to opportunity to take their studies a little further. They enjoy a variable interest rate with flexible repayment options. Finally, customers can repay their loan over 1 to 5 years.
This is a facility that is linked to a current account. It allows customers to go into an authorized negative balance.
- Customers use the funds to make up a shortfall in their cash flow during the month.
- Furthermore, the facility prevents customers from being charged unnecessarily when in excess.
- Finally, customers can discuss the amount and term with the bank in advance.
Consumer Hire Purchase
This loan type is suitable for those who wish to explore finance options for amounts higher than € 7,000. Furthermore, with this loan package customers enjoy a fixed rate.
- Customers enjoy repayment terms between 2 to 5 years.
- Also, at the end of the period and after a purchase fee of € 63.49, the car belongs to the customer.
- Finally, customers enjoy convenient financing.
Another loan type to consider is a credit card. Read here to learn what Bank of Ireland has to offer.
Critical Reviews Rating Bank of Ireland Loans – 10 of 10
This is the Bank of Ireland that we’ve come to know and with the loan products, they’re back on top. Each product is specifically designed to meet the needs of different customers at different stages in their lives. Customers have upfront access to the fees and charges, and a have a general idea of the APR offerings.
Finally, with these products Bank of Ireland makes up for the lack of information on their mortgages, and lack of products in their credit card range.
Read here to see how Royal Bank of Scotland compares with their loans.