Personal Loans Lenders Galore

Over the last 12 months the post office has been researching the financial market and according to the outcome more than £7 billion of personal loans have been signed off by a new bank called the "New Bank Of Friends" it would seem that this bank has taken the market by storm, even with the gloom of the personal financial industry.

As a result of the banks and lending institutions tightening their criteria more and more people are turning to their friends to help bolster their finances. It has been claimed by the people in the United Kingdom that just over 25% of people in the last 12 months have lent money to friends, the average loan amount lent stands at 𧴽 and the average lender will lend to up to 4 friends.

Of the £7 billion lent it is said that just under £3 billion has yet to be repaid, with 18% of lenders having lent more than they can afford it is unlikely that the UK's lenders will adopt the lending strategy of these new lenders. Nearly 1 in 5 of the new lenders say they have lent out more money than they can afford, with similar numbers who cannot even remember how much they have lent out.

Doug Strachan the Post Offices director of finance said "Understandably, millions of households across the UK have needed to tighten their purse strings as the recession has taken its toll, and with money hard to come by from many lenders, people can be thankful that they have such good friends they can rely on."

I think it is safe to say that the traditional lenders will also not adopt the flexible payment options of the new lender, where the debtors have been imaginative in some of their repayment methods, to say the least. The most popular of these methods being; A thank you card, a meal out, some people will offer a favour in return, a kiss or a cuddle or even alcohol. Even though these unconventional reimbursement methods may be adequate among your friends, you can be confident that your bank manager may not be of the same opinion.

Although £7 billion represents a significant portion of the personal loans market as it stands currently, I do not think the industry needs to be too concerned about the new competition. There are plenty of new applicants out there too please the more customary lender, they are much happier to keep with the more traditonal terms, higher loan amounts, with a good repayment method and do not in return want you to take them for a spot of lunch.


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Steve Smith writes for Personal Loans Arranged a broker that specialises in paying out personal loans to UK homeowners and tenants alike. Visit today http://www.personalloansarranged.co.uk/information/