I was recently looking to get a loan for my new classic car and someone mentioned to me that Prestige Finance gave a good deal. Like me, you may not have heard of Prestige Finance as they are a small finance company which is based in Hertfordshire. However don’t let that put you off as since 2012 they, alongside a number of other small finance services companies, make up the OneSavings Bank Group. Prestige specialise mainly in secured loans and have been operating since the 1980s so they are not new to the UK market and they have plenty of experience in the loans marketplace.
Having found this information out I did feel more confident in using this company. However I needed more information before I was going to commit to any loan. I wanted to know all the minute details including all the different payment options and the variable rates of interest.
Types of loan with Prestige Finance
I found that there were several different loan options available to me and Prestige Finance had every scenario covered to meet whatever budget you have. I first looked into getting a repayment loan where you make a monthly payment and part of that payment pays the interest for the month and the remainder is then paid off the main loan. I was assured that with this type of loan as long as I kept up with the payments each month they by the end of the loan period it would be completely paid off. I then looked at the interest-only loan and this meant that the monthly payments I would be making would pay off the interest for the month and the remainder is invested so that at the end of the loan period the investment would then pay off the loan in total. I finally settled on option one as I only wanted a 5 year loan and I felt that with the current state of the financial market any investments would not make a big enough return to pay off the loan. I feel the interest only loan was too much of a risk and the repayment loan gave me more confidence that I could pay the loan off in the 5 years.
The other thing I needed to consider was whether to take out a variable rate loan which would change with the market going up and down of course or a fixed rate which would give me the same rate for the whole term of loan. I opted for the fixed rate as I wanted to know exactly what I would be paying each month for the 5 year term, I didn’t want to be hit with sudden higher payments that may happen with the variable rate loan.
On the whole I found Prestige Finance an excellent company to deal with and their forms and procedures were really easy to follow.