Graduate Loans – funding the next step - Students - Guides - Moneyfacts

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Graduate Loans – funding the next step

Graduate Loans – funding the next step

Category: Students

Updated: 31/08/2016
First Published: 31/08/2016

Finding the money to finance a postgraduate degree or professional diploma can be a difficult prospect after 3 to 4 years of university costs.

What is a graduate loan?

Graduate loans are typically available to students who have recently graduated from university. The majority of lenders insist that you hold a current account with them in order to borrow money.

Loans for graduate students are good, as lenders tend to offer lower interest rates in order to ease the pressure while you get your feet on the ground.

What can I use the loan for?

A loan could help you to continue your studies, or perhaps set up your own business – in a sense, student graduate loans could be your ticket to the next stage of your career.

Where can I find a graduate loan?

Some high street banks and lenders will offer some kind of graduate loan package. It is very important to do some research and learn all you can about each element of the different types of packages before you sign up for a deal. Below are some of the packages currently available.

Remember that a Representative APR may not be the rate that you pay. The rate that you are offered will be dependent on your credit rating and status.

Bank Representative APR Min/Max Loan Open To Repayment Period
Bank of Scotland Graduate Loan 11.9% £1k - £4,999 Bank of Scotland Graduate Account holders only. Fixed rate for up to 5 years, repayments deferred for up to 1 month
Bank of Scotland Graduate Loan 9.9% £5k- £10k Bank of Scotland Graduate Account holders only. Fixed rate for up to 5 years, repayments deferred for up to 1 month
Barclays Bank Graduate Loan 12.9% £500 - £10k Account with lender required to repay loan. Graduates up to 2 years after graduation (up to 25 June in the second year following graduation) who are currently in employment and do not wish to continue full time study. Fixed rate for up to 7 years, repayments deferred for up to 4 months
HSBC Graduate Loan 12.9% £1k - £4,990 Account with lender required to repay loan. Graduates who have graduated in last 5 years. Rates for existing customers or those opening a current account. Fixed rate for up to 5 years, repayments deferred for up to 3 months
HSBC Graduate Loan 3.3% £5k - £25k Account with lender required to repay loan. Graduates who have graduated in last 5 years. Rates for existing customers or those opening a current account. Fixed rate for up to 8 years, repayments deferred for up to 3 months

Lloyds Graduate Loan

11.9% £1k - £4,999 Lloyds Graduate Account holders only. Fixed rate for up to 5 years, repayments deferred for up to 1 month
Lloyds Graduate Loan 9.9% £5k - £10k Lloyds Graduate Account holders only.
Fixed rate for up to 5 years, repayments deferred for up to 2 months

Information correct as at: 01/08/2016

What next?

Just Graduated? Find out what you should do to get your finances and debts in order.

Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

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