Nationwide has become the first personal loan provider to introduce a summary box, allowing customers to see personal loan deals at a glance.
The decision to introduce the summary box follows mystery shopper research of the major UK personal loan issuers, which revealed that borrowers often have no idea of the loan rate they will be offered until they have received a credit score.
With the Nationwide summary box, consumers will be able to see exactly what the true cost of the loan will be at the time of application - avoiding the accumulation of credit scores which can make it harder for them to be accepted by loan providers.
Details of the interest rate a customer will be offered if they are accepted, how much they will be lent and for how long, and arrangement and early redemption charges are all included in the summary, as well as example costs of loan repayments and payment protection insurance, if applicable.
"There is too much confusion and lack of transparency for consumers taking out a personal loan," said Stuart Bernau, executive director of Nationwide.
"It is up to the industry to be fair and give clearer information to enable customers to make a decision.
"If the industry adopted Nationwide's lead, it would highlight some of the extortionate rates people currently have to pay for personal loans. This will lead to more consumers getting a better deal."Click here to find out more about personal loans.
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