PTSB unveils two new loan products

Permanent TSB today unveils two new lending products that it hopes will help in 2015 to more than double the value of personal loans given to customers this year.

A new unsecured motor loan that allows customers to take ownership of the car immediately will be available for customers looking for between €1,500 and €75,000 to buy a car.

The bank will not require that the car be pledged as security for the loan, with the customer instead required to provide proof that the car was bought from a registered Simi dealer.

Interest rates will depend on the age of the car, with APR of 8.8% available on cars up to two years old, to a maximum of 10.4% for older cars up to seven years old.

By comparison, AIB’s unsecured car loan APR is 12.99% for loans up to €10,000 while Bank of Ireland’s typical APR is 12.8% variable, or 11.5% for applications made online or over the phone.

PTSB has also added a new range of cash-secured loans which replicate the credit union model, allowing customers to borrow against savings held with the bank.

Rates will again vary, depending in this case on the amount of borrowings that are backed by deposits, with customers who can pledge savings of 25% of the loan looking at a rate of 9.9% APR variable. For customers who can pledge 100% of the required loan amount, the interest rate will be 7.1% APR variable.

“Our new range 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,” said PTSB head of consumer lending, Elaine Moore.