Lloyds Debt Consolidation Loan Reviews & In-depth Info 2022

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Should you take out a Lloyds debt consolidation loan? We discuss these personal loans here and consider them against other high-street lenders.

Lloyds is one of the big four banking institutions and often considered as the largest retail bank in Britain. It is also one of the oldest UK banks after being founded as a private banking business by a button maker and his partner in 1765. Today, they offer a selection of banking accounts and also offer mortgages and personal loans.

Their personal loans are often used for debt consolidation purposes, but are these loans competitive? 

Debt Consolidation Loans in a Nutshell

Debt consolidation is exactly like it sounds. You consolidate multiple debts into one bigger debt by taking out a new loan. You might take out a loan of £2,000 to pay off four debts totalling the same amount.

But you don’t just do this for no reason. The new credit you take out must provide more affordable repayment terms so you can manage your repayments easier. More beneficial terms may include lower interest or even a repayment holiday to start with.

Always research debt consolidation or get advice before going ahead!

Lloyds Debt Consolidation Loan Overview

Lloyds offer personal loans that can be used for debt consolidation. You can access from £1,000 to £35,000 through a Lloyds debt consolidation loan. However, if you need to access bigger amounts over £10,000, you should speak with a UK debt charity first.

There is a chance that a debt consolidation loan is not the most advantageous debt solution and you may be able to find a better option from the various debt solution services.  

Lloyds Debt Consolidation Loan Review

Lloyds Debt Consolidation Loan Reviews

We were unfortunately not able to find any reviews about debt consolidation loans specifically, but we did get mixed messages about the bank’s customer service. This might put some people off trying for one of their loans.

“Amazing bank with no issue at all. I [have been] with them 10 years no issue.”


“Haven’t had too many problems in regards to doing my banking, however, the customer service isn’t very pleasant to talk to on the phone.”


Who Can Apply for a Lloyds Debt Consolidation Loan?

To apply for the Lloyds debt consolidation loan, you must be at least 18 years old (not 21 like some competing banks) and you must live in the UK. 

You also need to have had a Lloyds account for at least one month, which will exclude a lot of people. Other banks take a similar approach, such as NatWest where must have had an account for three months with them.

This is unlike Santander and other banks who offer their debt consolidation loans to non-customers as well – sometimes with less favourable terms. 

Moreover, you must have regular income or employment to apply. If you are a full-time student you will not be able to apply for a Lloyds debt consolidation loan.

How Good Are the Interest Rates?

The representative APR of Lloyds debt consolidation loan is 3.9% for amounts between £7,500 to £25,000, which is the same as NatWest. But this representative rate is slightly higher than the other big UK banks who can offer rates of 3% to 3.45%. 

But don’t focus too much on the representative rate. It is often the case that few people can get these low rates and some people can only get the highest APR rate of 29.9% – a huge difference. 

The rate you can get will depend on personal circumstances.

Lloyds Debt Consolidation Loans Have Repayment Holidays (BONUS!)

Although the rates might not have you jumping for joy, there are other benefits of a Lloyds debt consolidation loan that will.

Lloyds offer their personal loan customers the opportunity to apply for two repayment holidays every year. This is subject to approval but could help ease the pressure if an unforeseen purchase is needed while you repay.

You can even make early repayments or settle the loan early. But take note, if you want to settle the loan early you will be subject to a fee of up to 58 days of interest.

How Long Do I Get to Repay?

Most loans can be rapid between one and five years. If you borrow more than £25,000, you will be able to extend the maximum repayment period by two years. 

However, as mentioned earlier, large borrowing is not usually a good idea for debt consolidation. Other debt solutions are likely to be more beneficial to debtors. 

Can I Get a Lloyds Debt Consolidation Loan Quote?

You can get a quote by using the Lloyds debt consolidation loan calculator. This will give you an idea of the terms you could get with a Lloyds personal loan.

But take the calculator with a pinch of salt. It is not clever enough to determine individual circumstances and is likely to provide better terms than you can really obtain. Sometimes these calculators are lead generators rather than helpful to potential customers. 

Instead, you can use the personal quote tool. This will give you a more accurate quote and tell you the likelihood of being accepted. This is useful because it negates the need to apply if you won’t be accepted – and therefore protects your credit file as no check will be completed for the provisional quote. 

Lloyds Debt Consolidation Loan, Yayy or Nay?

Lloyds have pretty much excluded anybody who is not one of their customers from accessing their debt consolidation loans. The representative rates they offer are not as appealing as other banks, such as Santander. Yet, these are representative and might not be achievable in any case.

One of the best aspects of the Lloyds debt consolidation loan is the potential for two repayment holidays each year. This will provide exceptional peace of mind and is an innovative inclusion.

Final tip? Keep Lloyds on your shortlist but don’t stop window shopping here!


Do you know your debt free date?
Do you know your
debt free date?
  • Affordable repayments with an end date in sight
  • Reduce pressure from people you owe money to
  • Stop interest and charges from soaring