PTSB cuts its personal loan rates

PTSB has announced a big shake-up to its personal loan offering.

It’s cutting its rates and simplifying how they’re structured. 

The move should make it easier for customers to compare loan options across providers and also means PTSB will now offer some of the lowest personal loan rates in the market.

Fewer rates, more clarity

Until now, PTSB offered over a dozen different loan rates which were based on how much you were borrowing as well as what you were borrowing for e.g. a new car, home improvements, or personal reasons,  

But from today, PTSB will offer just three rates which will depend on the size of your loan. 

Rates will range from 5.99% to 8.50% (6.20% to 8.80% APR) which are among the lowest on the market right now.  

Compared to previously, borrowers taking out a larger loan could see their interest rate reduce by as much as 4.90% compared to what they would have paid before.

PTSB's new personal loan rates

Personal loans from €1,500 to €75,000 are available from PTSB.

You can borrow from six months up to five years in general. However a loan term of up to 10 years is available if you’re borrowing over €10,000 for home improvements. And if you're borrowing to pay for a holiday, there's a maximum loan term of just one year. 

New digital tools for customers

As part of the revamp of its loans structure, PTSB has also introduced a new Affordability Calculator, which has been designed to give customers an idea of how much they may be eligible to borrow before starting an application. 

The tool is currently available on PTSB’s website and its online banking and will be available in the PTSB app in the coming weeks.

Why is PTSB cutting its personal loan rates?

Over the past two years the European Central Bank has cut interest rates from 4% to 2%, which has helped lower the cost of borrowing. 

But PTSB is also looking to compete more aggressively in the personal loans market, which for decades has been dominated by the two pillar banks as well as the Credit Unions.

Although the bank has a large share of the mortgage market, this hasn't translated into a large share of the personal loans sector — something which PTSB seems eager to address.      

We are delighted to launch this competitive new proposition to the market today which demonstrates our ambition to grow our consumer finance book significantly in the coming years. We have created a more simplified and easier to follow loan offering which customers can easily assess and apply for, and the digital application experience for PTSB customers is transformed.

Dermot Ryan, PTSB’s Head of Product and Pricing Strategy

Easy to apply 

PTSB also says it’s making it even easier to apply for a loan with a new streamlined process. 

If you're an existing customer you can apply for a loan within the PTSB app or through PTSB’s online banking website. For loans up to €25,000, there is near instant approval and the money can be transferred into your PTSB account in seconds. For loan amounts greater than €25,000 and up to €75,000, PTSN says you can still apply online but there will need to be a follow-up call to discuss your application a bit further.

New customers can apply through a local branch or by phone.

And if you're already in the process of applying for a loan, you'll automatically be switched to one of the new cheaper rates. 

Compare your options

It's important to compare all your options before applying for a personal loan.  

Remember, you don't need to take out a loan with your existing bank. So PTSB customers can apply for a personal loan with AIB or Bank of Ireland for example and vice versa. So shop around. As although PTSB's new rates are highly competitive, depending on the amount you're borrowing and the purpose of your loan, lower rates may be available elsewhere.

And if you're carrying out a deep retrofit, you may be able to apply for a much lower rate under Home Energy Upgrade Loan Scheme. This is a Government-backed scheme which provides homeowners with low-cost finance to help improve the energy efficiency of their homes.

You can compare rates from all the main loan providers in Ireland on bonkers.ie in seconds.