Avantcard introduces new rate of 5.9% on personal loans

From home improvements to purchasing a new car, taking out a personal loan can be one of the most useful financing options available for people who don't have access to disposable savings.

However, for those looking to get the very best value from a particular financial provider, there hasn’t been much movement on the rate of interest consumers are being charged...

...until today.

Consumer finance company Avantcard has just announced a brand new fixed interest rate for personal loan customers which now makes it the lowest rate available for consumers on the market.

Want to find out more? Just read on!

What’s the new rate?

Avantcard is offering eligible personal loan customers a brand new rate of 5.9% APR on loans with a value of €20,000 or more.

The new fixed rate announced by the loan provider will replace its 6.1% APR rate previously available to customers on loans of a similar value.

For example, this means that customers looking to take out a loan of €25,000 over 5 years could expect to pay €479.84 per month in repayments, a total repayment of €28,790.42 with a total cost of credit coming in at €3,790.42.

The new rate from Avantcard is now the lowest rate on the market for personal loans of €20,000 and above.

Customers should be aware that Avantcard conducts a financial profile and credit history assessment before assigning the appropriate interest rate.

Take a look at our table below which gives an example of how much consumers can expect to pay at 5.9% APR over 3, 5 and 10 years.

Avant Money mortgages

Avantcard also ventured into the Irish mortgage market in September of last year with a number of fixed rate products becoming available under the new trading name of Avant Money.

Avant Money is now offering 3, 5, and 7 year fixed rate mortgages for switchers and first time buyers alike, with rates ranging from 1.95%, 2.35% and 2.65% available. 

In April of this year, Avant Money decided to​​ expand its low-cost mortgage rates to a range of new locations.

Shortly after, Avant Money introduced Ireland's lowest 10-year fixed-rate mortgage and in June, the lender came out with a new 30-year fixed-rate mortgage loan. 

You can compare and browse the new mortgage rates available from Avant Money on bonkers.ie by simply clicking here.

State of the market

The announcement today from Avantcard certainly spells out good news from a consumer perspective as there hasn’t been much movement on personal lending rates for products such as loans, credit cards, and overdrafts.

This is despite the fact that banks are currently able to borrow at rock bottom interest rates from the European Central Bank (ECB), whose rates have been falling for quite some time.

As it stands a record €125 billion is on deposit with Irish banks and the global pandemic is of course one of the main reasons for this figure skyrocketing.

However, banks here are currently being charged by the ECB for keeping money on deposit with it, while loan demand, which makes the banks revenue, has been muted.

So keeping this in mind it makes sense that lenders are doing all they can to try to make loans more attractive to Irish consumers.

Interest rates for savings accounts also remain at an all time low, as banks want consumers taking out loans as opposed to saving. However, if you're intent on making your money work for you in 2021, you can read up on some alternative savings options here or have a listen to our recent podcast on the topic here.

That being said, any downward pressure on rates and that which increases choice for consumers is a good thing and to be welcomed.

Other loans available

It’s worth noting that lower rates are often available to consumers for more specific types of personal loans, one of the most popular being for home improvements, such as retrofitting.

An Post is offering customers its Green Home Improvement Loan with a rate as low as 4.9% for loans over €20,000, while Avantcard is also offering a similar home improvement loan for 5.9% APR.

Members of certain credit unions, the HSSCU for example, also have access to rates as low as 5.12% for home improvement loans of €25,000 and over.

Check out our blog on the best personal loan rates available right now to learn more about what’s on offer.

So, whether you’re looking for a personal loan or a more specific type such as for home improvements the key message is to be sure and shop around to find the best rate available, which brings us onto our final point.

Compare, compare, compare!

If you’re considering taking out a personal loan, make sure to do your research and shop around beforehand.

The new rate announcement from Avantcard is good news for consumers but it may not be the right decision for you.

That’s why you should always assess your options before making a decision, especially before taking on a commitment such as a loan, no matter for how long.

You can use our personal loan comparison tool on bonkers.ie today to compare and contrast all of the best personal loan options available to you from all of Ireland’s top financial institutions.

Get in touch

If you have any questions about Avantcard’s offering, feel free to get in touch with us! 

Comment below or contact us on our social media channels. We’re on Facebook, Instagram, and Twitter.