How do personal loans in Ireland work?

Personal loans enable you to receive a lump sum at affordable rates from responsible direct lenders like Brokevo. You repay the lump sum in fixed instalments over an extended duration. These loans are typically used for home improvement, car purchase and debt consolidation.

Here is how a personal loan works:

Choose the loan amount

Decide on the loan amount, which starts from €1,000. You should carefully analyse your repayment capacity before submitting the application form. You need to borrow according to your affordability. Otherwise, we will offer you a lower amount than you requested.

Share your personal and financial details

The next step is to complete the application form. You need to provide your personal and financial details. We expect that you provide accurate information related to:

  • The number of debts you already have
  • The number of dependents
  • Your monthly income
  • Your monthly expenses

The loan amount is decided based on your financial circumstances. In order to back up your financial details, you will need to submit a soft copy of the following documents:

  • A bank statement
  • Pay slips
  • Profit and loss account statement or tax return if you run a business
online-personal-loan

You may be asked to submit additional documents as per your individual circumstances.

Get our quote

Running an affordability check is part of the application assessment. This involves two steps: evaluation of your credit score and financial stability. If you succeed in proving your repayment capacity, you will be informed about the loan amount, interest rates, repayment terms, and APRs (Annual Percentage Rates).

All these details are shared through a loan contract. We suggest reading all the terms and conditions of the contract before signing it.

Receive money

Sign the loan contract. After that, the money will reflect in your bank account within a few minutes.

Start repayment

You will be obligated to pay down the loan in fixed monthly instalments over the agreed repayment term.

Direct lenders vs credit unions – which is better for personal loans?

While typical APRs for personal loans in Ireland from credit unions are more competitive than those from direct lenders, they offer a very small amount of money. Further, they offer affordable interest rates to good credit borrowers only.

Direct lenders are more flexible than credit unions. They are not just in terms of the loan amount, but also interest rates and repayment terms.

Direct lenders vs credit unions
Aspects Direct lenders Credit unions
Approval process Online In-person
Credit check Lenient Strict
Membership Not required Must be a member
Loan amount Larger amount possible Often a small amount

Personal loans in Ireland should be used with caution. Missed payments can increase the cost of debt and ruin your credit score.

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