28-07-2025
Post Office to offer personal loans as part of plan to raise income for postmasters
The Post Office will offer personal loans to customers for the first time since 2023, in a bid to generate more revenue for postmasters.
It will offer personal loans of up to £25,000, with rates starting from 8.1 per cent APR.
The new loan offering comes as part of the Post Office's promise to deliver a 'new deal for postmasters'.
This was unveiled in November 2024 to increase the total annual income of postmasters through a number of revenue-sharing measures.
Under it, the Post Office has promised a quarter of a billion pound boost to postmasters' income by 2030.
The Post Office has already increased the amount of money postmasters receive for handling cash transactions as part of this deal.
The personal loans tie up will generate additional income, of which some will be shared directly with postmasters.
Post Office personal loans will be available online only. The amount available to borrow ranges from £1,000 to £25,000, with rates starting at 8.1 per cent APR and repayment terms spanning one to five years.
The loans will be offered in partnership with credit platform Lendable.
Lendable is an artificial intelligence-enabled lender, founded in London in 2014. It says it uses AI to identify low-risk borrowers using data beyond their credit score, allowing it to accept more borrowers at lower rates.
Borrowers will receive interest rates tailored to their specific circumstances, and Lendable claims most will receive their loan in under a minute.
Ross Borkett, Post Office banking director, said: 'By developing our commercial offering, we will generate income to be shared with postmasters and help sustain their presence in communities nationwide.
'We are proud to partner with Lendable, one of the UK's leading homegrown fintech companies, whose AI helps consumers get more from their finances.'
The Post Office previously offered personal loans through its partnership with Bank of Ireland, but this ended in 2023.
