If you have multiple loans, store cards or credit cards and want to consolidate them into one debt with more affordable repayment terms, the RBS debt consolidation loan might be a solution.
The Royal Bank of Scotland is a bank operating under the NatWest group. Although they have a strong presence north of Hadrian’s Wall, there are some RBS branches in England and Wales, usually in bigger towns and cities.
RBS offers a wide selection of retail banking products, including current accounts, savings and investment products and credit opportunities. The RBS debt consolidation loan might be an answer to your debt problems, but is it better than other personal loans on the UK market?
Your Debt Consolidation Crash Course
Debt consolidation is a method used at an early stage of debt to stop it getting out of hand and make your repayments more affordable. It is a potential strategy for people with more than one personal loan, store card or credit card debt.
It works by taking out more credit and using that credit to pay off all your other debts. Now your multiple debts have transformed into one single but larger debt. This is convenient but it isn’t done just for convenience.
Debt consolidation has the overarching goal of making your repayments on the new single debt less than the repayments on your previous debts combined. You might have to pay back for longer, but you should be aiming to pay back less each month.
Always research debt consolidation before committing!
What Is the RBS Debt Consolidation Loan?
The RBS debt consolidation loan is a personal loan you can apply for to pay off your existing debts and consolidate. Banks put limits on what a personal loan can be used for, but RBS like many other renowned UK banks have personal loans that can be used to consolidate debts.
RBS currently offer loans between £1,000 and £50,000 with different APR rates depending on your circumstances. Smaller loans have a maximum repayment period of five years, while any credit above £7,500 can be repaid over a maximum of eight years.
However, if you need to consolidate lots of debt and foresee these debts getting out of control, you might be better off using a different debt solution. Speak with debt charities and consult our debt options page for more details.
What Are the RBS Loan APR Rates?
The representative APR rate promoted by RBS is currently 3.9% at the time of writing for amounts between £7,500 and £19,950. This isn’t quite as good as the bulk of competing banks and building societies who tend to offer between 3% and 3.5%. However, it is not the worst either with Barclays offering a much worse 5.5%.
However, these rarely matter as most customers will be offered a rate much higher. The maximum APR rate offered by RBS is 29.9%, which is the joint highest rate around right now. HSBC currently have the lowest maximum RPR on personal loans at 21.9%.
To sum up, not too impressive here.
Am I Eligible for an RBS Debt Consolidation Loan?
The eligibility criteria for a personal loan in the UK is standard across the big banks. You must live in the UK and be at least 18 years old. Some banks require you to be 21 years old – but not RBS.
However, there is one criterion that may stop lots of debtors from being suitable to apply. You need to be a current RBS customer with a current account that you opened at least three months ago. This will stop a lot of people from applying and is not an uncommon requirement among the biggest banks.
There are alternative options that don’t require you to be a current retail customer to apply, including HSBC and Santander.
The Better Side of an RBS Personal Loan
If you are an RBS customer and have not been put off by the potentially higher APR rates, you might be boosted by another benefit of the RBS loan.
RBS offer a repayment holiday up to the first three months of the loan to some people. This is especially advantageous to people in debt as it gives them a chance to catch up on payments or build up more savings to overpay.
Not all banks offer holiday repayments on debt consolidation loans, so RBS do well here.
Is There an RBS Debt Consolidation Loan Calculator?
They do have a calculator online. It gives you an idea of how much you could borrow and what repayments you might be subject to. It does not give you any advice about consolidating your debts. This advice can be obtained for free by speaking with debt charities.
These calculators are not always accurate. The APR rate you are offered will depend on your circumstances and may not be as appealing as the one seen on their calculator.
How Do I Apply for an RBS Debt Consolidation Loan?
To apply for their debt consolidation loan, you must fill in an application form online. If you have RBS digital banking details, you can import lots of personal data to make the process quicker and smoother. If not, you have to automatically fill in questions and it takes longer.
You can expect a decision on your loan application almost immediately in nearly all cases. And depending on the time of the day you apply, you could have the funds in your bank on the same day.
Do We Recommend the RBS Debt Consolidation Loan?
The RBS personal loan is exclusively available to RBS customers and is therefore not suitable to most debtors in the UK. The representative APR rates and maximum APR rates are not the best around either.
The only positive we see in this loan is the potential repayment holiday you can get at the start of the loan.
It is probably best to look around first!