Secure Trust Bank has launched a guarantor loan in Trusttwo through its subsidiary Everyday Loans.
The loans, which require a guarantor who is willing to take responsibility for repayments should the borrower fail to pay up, are designed for those with a poor credit rating,
Trusttwo comes with an APR of 39.9% while clients can borrow from £1,000 to £7,500 over terms of 12-60 months.
Danny Malone, chief executive of personal loans and mortgages at Secure Trust Bank PLC, said: “We are delighted to launch Trusttwo – until recently, customers looking for a guarantor loan have had fairly limited choice.
“Our Trusttwo offer means greater choice for customers. Trusttwo will provide those unable to access credit from mainstream lenders with a way to secure the funds that they need, while working to improve their credit rating for the future.
“Trusttwo also offers them a stepping-stone on the path to build a robust credit rating for themselves – and, importantly, we do this at an extremely competitive rate.”
He added: “Trusttwo customers also benefit from the fact that we’re part of Secure Trust Bank, one of the UK’s challenger banks.
“The bank is a well-established and well-respected organisation, so our customers can be sure that they are in good hands.”
Guarantors need to be aged 25-74 with a good credit history.