permanent tsb bank will begin a major focus on personal lending in the New Year with the aim of more than doubling the value of personal loans given to customers throughout 2015 compared to 2014.
The bank today announced details of two new personal loan products which focus on offering customers an extremely competitive value proposition. The products are available to customers now.
Elaine Moore, Head of Consumer Lending at permanent tsb said:
We are launching an exciting new car loan product which is the only one of its kind in the Irish Market. It provides consumers with the option to take full ownership of their car from the start and at market leading rates that are normally only available by signing up to a Hire Purchase Contract in which they do not own the car until the last payment is made.
Customer Service is also at the forefront of the bank’s new offering.
We’ve also just launched our dedicated Motor Finance Team who can provide our customers with full loan approval in just 3 hours, so they can get on with the most important part ...shopping for their new car!
The product launch marks another significant milestone for permanent tsb as the bank continues to establish itself as a competitive force in the Personal Lending Market in Ireland. Moore said:
2015 will be a key year for permanent tsb as we continue to focus on developing and launching market leading and innovative lending options for our customers
The bank’s new car loan products will provide customers with market leading rates for the purchase of cars up to seven years old where up to 5 years finance is available. The bank will not require that the car be pledged as security for the loan and the customer is merely required to provide proof that the car was purchased from a registered SIMI dealer (Society of Irish Motor Industry).
permanent tsb offer car loan for amounts ranging from €1,500 up to a maximum of €75,000 and for a maximum term of 5 years.
The interest rate charged on loans will vary depending on the age of the car. APRs for cars up to 2 years old start at just 8.80% variable increasing to 10.4% variable for cars up to seven years old.
These rates are significantly lower than the equivalent personal lending rates available from other banks. For example, AIB’s unsecured car loan APR is 12.99% for loans up to €10,000 and Bank of Ireland’s typical APR is 12.8% variable (11.5% for applications made online/by phone).
The bank has also launched a new range of Cash Secured Loans which replicate the popular Credit Union lending model of allowing customers to borrow against their savings held with the bank.
permanent tsb will offer very competitive rates which will vary depending on the amount of the borrowings that are backed by deposits.
For customers who can pledge savings of 25% of the loan amount required, the applicable interest rate will be 9.9% APR variable.
For customers who can pledge 100% out of the loan amount required, the interest rate is just 7.1% APR variable.
Moore said the product is designed for customers who do not want use all their savings when looking to do things like buying a new car or improving their home.
After working hard to build up a lump sum, customers often prefer the option of leaving the ‘rainy day’ savings untouched and available for future or unexpected needs. Our new ranges of Cash Secured Loans enable customers to borrow at reduced rates of up to 4.7% APR variable less than standard rates, while still earning interest on their hard earned savings.
To avail of this product, loans must be for a minimum of €10,000 up to a maximum of €75,000. Loan terms can be up to 10 years depending on the purpose of the loan.