Personal loans continue rising even though they cost a lot more now

London (Online-Unsecured-loans) October 20, 2008:The number of personal loan takers is increasing in the UK. It acquires larger significance against the present scenario of liquidity crunch and the resultant costlier nature of most of the borrowings like secured loans, unsecured loans, debt consolidation loans, tenant loans etc.

A price comparison website named uSwitch.com has found that the UK consumers are not deterred too much by the rising personal loan rates and continue to avail these borrowings for purchasing their items of likes from the shopping markets. It found that during the last month, personal loan offerings by the Black Horse, a constituent of the Lloyds TSB group, have grown up by as much as 36.9 percent.

This shows the Britishers' positive spirit even though the cost of most of the borrowings has gone much higher recently. For example, before the recent increase in the interest rates someone taking £2000 as a loan for a two year period had to pay £632 as interest. But now the cost has increased by as much as 35 percent to reach £857.32. Apart from their costlier nature, personal borrowings are now available in just 52 categories against the earlier mark of 54.

Even though the Bank of England has decreased the the rate of interest by 3/4th of a point to 5 percent since last month. The cost of borrowings are however escalating almost freely. Somehow this reduction in costs has not been successfully passed onto the consumers.

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