Post Office offers loan

31 March 2004
An unsecured personal loan is now available from your local post office, following a joint venture with Bank of Ireland.

The two companies have joined forces to offer the service through 16,500 Post Office branches in the UK.

Bank of Ireland is providing a sum of around £125 million, over a ten-year period, to cover start-up and core infrastructures costs.

Patrick Waldron, chief executive officer of the joint venture, welcomes the move: "We believe that the partnership between the two companies will develop into a major player in the UK financial services market over the next few years."

Findings from early pilot schemes revealed that 78 per cent of loan customers felt that it was "very good to see the Post Office offering financial services".

David Mills, chief executive of Post Office Ltd, feels the company has an advante in the financial sector: "Extensive research carried out amongst 20,000 customers clearly indicated a huge demand for financial services from a brand like the Post Office.

"We are trusted by our customers who appreciate our commitment to providing straightforward, good value products and services."

The unsecured loan will be available over the phone or online. This year may also see the introduction of motor insurance and savings products.