How to Find the Cheapest Loans for NHS Staff

Whether it’s a special family holiday or just debt consolidation, there are plenty of reasons why NHS staff might need a loan. When that time comes, it’s understandable that you’ll want the cheapest option you can get. After all, why pay more?

In this article, we’ll provide helpful information about where to look for the cheapest loans for NHS staff. We’ll also run through the different costs to be aware of and how to compare deals properly to find what’s best for you.

Where to look

Let’s start by running through the different options you have as an NHS worker in need of a loan…

Banks

Banks are an obvious choice – and they need no introduction. This will be the first port of call for most NHS staff. The likes of Barclays, HSBC, Lloyds and Santander are all places you can trust.

The main downside is that they can be quite strict when it comes to credit requirement. If you’ve got a less-than-perfect credit score or you’re quite young and lacking in credit history, you might get turned down.

Credit unions

If you’re looking for a personal approach with more flexibility, it’s hard to beat credit unions. They offer low interest rates and fees with a focus on responsible lending. As not-for-profit organisations, any money they make is split between their members – which will include you if you join and apply for a loan. After doing so, you’ll have a safe place to save with financial support for life.

This highlights a potential pitfall with credit unions, as you need to be a member to get a loan. Whether or not you can join depends on each credit union’s common bond – this is the criteria required for membership. Fortunately, working for the NHS is included in our common bond at Metro Moneywise. So, you can become a member simply because you work for the NHS.

Online lenders

When you’re searching for the cheapest loans for NHS staff, you’ll also come across lots of online lenders. The main advantage here is speed, with fast online applications and loans approved (or not) within 1-2 days in many cases.

The downside? Given how easy it is to set up a website nowadays, you’ll really need to put in some legwork to ensure you’re working with a company you can trust. Common issues include:

• A lack of contact information, which can be problematic during and after your application.
• High interest rates that aren’t displayed clearly – more on this later.
• Outright scams like unwarranted processing fees, which are taken by the most disreputable firms without any intention of giving you a loan.
• Misleading claims like “guaranteed approval” or “no credit check”, which can lure you in and lead to a negative impact on your score without you knowing.

How to find lenders you can trust

At this point, it’s worth reiterating that not all lenders can be trusted. Here are some things you should always check for:

• FCA approval: The Financial Conduct Authority is an independent public body that regulates lenders and protects consumers. Don’t just take a firm’s word that they’re registered – you can check the register yourself.
• Verified contact information: Look for a physical office address that can be found on Google Maps, presence on directories, a phone number and a contact email. Again, don’t just assume they’re legitimate – give them a ring or drop them an email.
• Clear, transparent loan terms: Are they pushing an unrealistically low APR or guaranteeing approval? If something seems too good to be true, it probably is.
• Online reviews: At Metro Moneywise, we’re incredibly proud of our 4.9-star rating on Google, but not everyone can say the same. Check all providers on Google, Trustpilot and even Money Saving Expert forums if needed.

Comparing the cheapest loans for NHS staff

Below, we’ll clarify some common terms you’ll need to understand when finding the cheapest loan...

Interest rate vs APR

Interest rates can be misleading because they don’t include extra fees or reflect the total cost of your loan. Plus, they can be shown as a monthly or annual figure. This all makes it hard to compare different loan products.

In contrast, APR – the Annual Percentage Rate – includes the interest rate per year plus any fees. It’s a much better way to compare loan products.

APR vs representative APR

That said, you should be wary of representative APR. This means (by law) that at least 51% (over half) of applicants must get this rate. It doesn’t mean that you’re guaranteed it.

Term length

Be sure to consider how long you’re borrowing for. If it varies from lender to lender, this will affect the overall cost of your loan. Even with a lower interest rate, you could pay more with a lengthier repayment period because you’re paying that interest for longer.

Additional fees

Finally, don’t forget to factor in things like exit charges or early repayment fees. Some lenders will add these in to avoid you exiting early and reducing the amount of interest you pay.

Which is best for you?

APR provides a simple way to compare loan products initially. When you apply, loan providers are legally required to show you the overall cost of your loan before you agree to borrow – this makes it easy to compare at a later stage.

Remember, the cheapest loan for NHS staff overall might not be the best fit for you. It’s also about affordability. For example, you could pay more overall in interest with a longer repayment term, but it means you can spread the monthly repayments thinner – making the loan more affordable and manageable.

Consider flexibility too. Early repayment fees can make it difficult to adapt if your circumstances change.

How we can help

Metro Moneywise Credit Union provides cheap, affordable loans for NHS staff from across the UK. Whether you work in a hands-on or administrative role, you can join our credit union and access loans starting at 6.2% APR.

Our friendly team provides a personal service, basing decisions on affordability rather than just credit history. Even better, you can pay off more if you want at any time, and you’ll only pay interest on the remaining balance.

As a credit union, we’re committed to responsible lending and share all profits between our members. Once you’ve joined, you’ll also benefit from lifetime financial support with a safe place to save!

Simply join online below or contact our team on 01706 298966 to find out more.