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Term of the loan. The size of the loan will to some extent determine the term of the loan. It is, for example, difficult to pay off a £7,000 loan in just one year as the scb personal loan payments would be relatively high. However, if you borrow only £1,000, a term of 12 months is more manageable. You also have to consider the cost implications of the loan term as the longer the term, the lower the monthly payments but the higher the total cost.
For example, lets say you borrow £3,000 over three years at 7. The monthly payments would be £93, so you would pay total interest of £348. Scb personal loan you extended the term to five years, the monthly payments would drop to £60, but you would pay £600 in total interest.
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