Cashback offer opened on first direct loans

Customers who take out personal loans with first direct have been offered a 25 per cent refund of the interest paid throughout the life of the loan if the sum is repaid on an agreed date.

The provider points out that the cashback will only be paid after the customer has paid the final instalment of their loan.

Products ranging in amount between £5,000 and £25,000 with a term of at least two years will be eligible for the offer.

Customers wishing to take advantage of the refund must have taken out their loan before October 2nd.

As an example, first direct claims that a customer who borrows £10,000 over three years at an interest rate of 6.9 per cent APR will receive £266.93 in cashback.

This is the equivalent of reducing the interest rate on the offer to 5.3 per cent a year, according to the provider. It does point out, however, that rates offered depend on respective customers’ circumstances.

Loans with first direct are only available to the organisation’s existing current account holders.