Guide to First Direct Personal Loan

Understanding the First Direct Personal Loan

A first direct personal loan can be a straightforward, flexible option for those needing to borrow for various personal reasons—such as home improvements, car purchases, emergencies, or debt consolidation. Exclusively offered to first direct current account holders, it stands out for its combination of competitive rates, fixed repayments, and digital convenience.

“A personal loan with clear terms and speedy approval can provide both financial stability and peace of mind.”

Key Features at a Glance

• Borrow £1,000 to £50,000
• Fixed interest rate: from 5.9% APR representative
• Terms from 1 to 8 years (12 to 96 months)
• Online application: decision typically within minutes
• Make overpayments anytime to reduce interest
• Early settlement option (with a small charge)

Who’s Eligible to Apply?

To apply for a first direct personal loan, applicants must:

• Be at least 18 years old
• Be a UK resident
• Have a pre-tax income or pension of £10,000 or more per year
• Hold a first direct current account
• Have no bankruptcy or IVA history in the last 6 years

Note: The loan is not available for business or property-related purposes and isn’t open to non-account holders.

Interest Rates and Payment Example

• The exact APR offered may be higher, up to a maximum of 18.9%, depending on your financial circumstances and credit history.
• Interest is fixed for the full term, making budgeting predictable and simple.

Early Repayment Charges

• Loans up to 12 months: 28 days’ interest
• Loans of 13–96 months: 1 month’s interest plus 28 days’ interest

Making overpayments always reduces the interest paid in total.

Fast and Flexible Application Process

Applying is quick and straightforward—often taking under 10 minutes. Here’s how you can apply:

1. Via the first direct mobile app – the fastest way, often with an instant decision and immediate funding.
2. Through online banking – select the personal loan product and complete the application.
3. By phone – ideal for joint loans or consolidating existing loans. Funds are released after signing and returning the agreement.

For any queries, 24/7 support is available via app chat or dedicated phone lines, including options for special circumstances such as bereavement or accessibility needs.

"Digital-first banking now meets flexible borrowing – putting customers in control every step of the way."

Practical Uses and Restrictions

Allowed:

• Car purchase / upgrade
• Emergency expenses
• Debt consolidation
• Home improvements
• Holidays, or other personal needs

Not allowed:

• Buying property or land
• Mortgage deposits
• Business investments
• Gambling or share trading

Always ensure you know exactly why you’re borrowing and confirm your use falls within these guidelines.

Managing Repayments & Debt Consolidation

• Repayments are fixed monthly payments over your chosen term.
• Use the online calculator to estimate costs for different scenarios before committing.
• Loans can be used for debt consolidation, but make sure to compare the total cost, including any early settlement penalties from your existing debts.

Frequently Asked Questions

Can I check my outstanding balance or settle early?

• Yes. Contact customer service by app, phone, or online to check balances or settle early.

How will my application be assessed?

• Your financial history, income, and credit score are considered through a responsible lending process. If declined, you’ll know which credit reference agency was used, and you can request a review.

What if I need extra support?

• Services for accessibility, bereavement, or vulnerable customers are readily available—just reach out via their support lines.

Security and Peace of Mind

• Deposits across all accounts are covered by the UK’s Financial Services Compensation Scheme (up to £85,000 per person).
• Robust fraud protection measures are in place, offering an extra layer of reassurance.

Related Financial Options

Need options other than a personal loan? Consider:

• Credit cards for balance transfers or purchases
• Specific-purpose loans (home, car, etc.)
• Savings products like cash ISAs and regular savers

Tip: Compare each product’s suitability for your unique needs before applying.

"First direct offers transparency and flexibility—hallmarks of smart modern borrowing."

Ready to apply or need tailored advice? Visit your first direct app or online banking portal, or call their expert support line for any questions. Always check that personal borrowing matches your financial circumstances before committing.