Post Office Loan Provider Review 2022 – Forbes Advisor UK

Especially for loans between £15,000 and £25,000 where rates are at their lowest, the Post Office is a strong contender in the personal loan market. It also offers borrowing terms of up to seven years.

Representative example

The representative APR example gives you an estimate of how much it might cost if you borrowed a certain amount of money. This helps you compare products and provides a guide to the cost of carrying a sale. Your personal offer may vary from the representative APR example.

You can borrow £15,000 over 36 months with monthly repayments of £435.31. The total reimbursable amount will be £15,671.07. Representing 2.90% APR, annual interest rate (fixed) 2.90% pa Credit available subject to status.


  • Competitive (fixed) representative APRs, especially for larger loans
  • Instant decision on online loan applications
  • Funds paid into your current account within two business days

The inconvenients

  • Lower APRs may be offered by other providers
  • APR up to 29.9% based on credit score and loan amount
  • Longest borrowing terms limited to loans of £5,000 and above

Lowest Representative APR

2.90% APR


£1,000 to £25,000


12 months to seven years


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Main characteristics

  • Representative APR of 2.90% (fixed) on loans between £15,000 and £25,000
  • Representative APR of 3.10% (fixed) on loans between £7,500 and £14,999
  • Loan amounts ranging from £1,000 to £25,000
  • Repayment terms between 12 months and 7 years (restrictions apply)
  • Charge up to 58 days interest for full prepayment

Will I be eligible?

To apply for a La Poste personal loan, you must be over 21 and 70 at the most at the end of the loan term. You must be a UK resident (for at least three years) and have a UK-based bank account or building society that can pay direct debits.

You must also have a regular income of over £12,000 a year and a good credit rating with no history of county court judgments or bankruptcy.

Before taking out a personal loan, consider the term of the loan and any events that may occur during that time that may affect your ability to meet loan repayments. Missed or late repayments incur fees and may hurt your credit score, making it harder to get credit in the future.

What more do I need to know?

There is a charge of £12 for missed/unpaid repayments with all post office loans and a standard charge of up to 58 days interest for repaying the loan in full early.

You will usually receive an instant decision if you apply online. And if your application is successful, you could receive the funds as early as the next business day.

You will then have a withdrawal period of 14 days from the signing of your contract during which you can change your mind.

Once the loan is in progress, you can ask the Post Office to complete your loan, provided that you have repaid at least 50% of the balance of your loan or have made a minimum of 12 installments.

Compare personal loan offers from a range of providers in the market before applying, as personal loan rates can change frequently from provider to provider.

In addition to the rate, find out about the terms of the loan such as any partial or total prepayment charges.

If you’re applying for a loan to consolidate existing debt, make sure it’s best to borrow more. For example, compare the interest rates and borrowing terms between your current lender(s) with those offered by La Poste.

You can contact the La Poste call center on 0800 169 2000 for any questions.

Is the postal loan right for me?

A Post Office loan is particularly worth considering if you need to borrow between £15,000 and £25,000, as you could be offered a competitive APR of 2.90% (fixed), over a term of loan from 12 months to seven years.

However, keep in mind that this APR is representative. The one offered to you will depend on your credit score and your personal situation, so it could well be higher. As is generally the case with loan providers, smaller loans attract the highest APRs.

What are my alternatives?

If you plan to borrow a small amount, a credit card that offers 0% interest on purchases may be more suitable. This way, you won’t have to pay interest, provided you pay off your balance in full during the promotional period.

Look for the best deals from a range of credit providers, before you commit. An eligibility checker performs a “simplified search” on your credit report, which means you can see how likely you are to be accepted for a transaction without leaving any evidence on your credit report.

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