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Lloyds lowers rates on graduate loans

Caroline Merrell
Saturday 28 May 1994 23:02 BST
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LLOYDS Bank is slashing the interest rate on personal loans to graduates, writes Caroline Merrell.

The low rate, now cut to 8.4 per cent from 14 per cent, will be available on loans of between pounds 500 and pounds 3,000, to be repaid over periods of six months to three years.

The bank is offering a pounds 50 interest-free overdraft. After that, interest is 1.1 per cent per month or 14 per cent APR.

Lloyds has reintroduced its professional studies loan for those going into full-time vocational training after graduating. This allows the student to borrow up to pounds 10,000 - or two-thirds of present salary.

Repayments can be made over five years and there is a six-month repayment holiday after the course of study.

Other banks have similar services. NatWest offers a post-college loan of up to pounds 10,000 carrying 10.25 per cent interest. It also offers a professional studies trainee loan scheme. Under this, graduates can borrow up to pounds 10,000 at 2 per cent over base rate, and delay paying off the loan for 15 months.

Midland offers graduates the option of changing their debt into a low-interest loan at 3 per cent over base rate.

For those embarking on professional training after university, the bank offers two types of loan. One, for trainee lawyers, offers either pounds 4,000 or pounds 8,000 depending on the duration of the course. The rate is 1 per cent over base. For other trainee professionals, the bank offers loans at 2 per cent over base.

Barclays offers graduates loans of up to pounds 3,000 which may be repaid over a maximum of three years. The interest rate is 2.5 per cent over base.

Barclays also offers career development loans and professional study loans.

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