what is AA loan?

what is AA loan?

AA loan

Learn more about the personal loans offered by AA Loans, including how they work and how much you could potentially borrow.

AA personal loan

In the meanwhile, AA no longer provides loans to new clients.
AA acts as a credit broker for unsecured fixed-rate personal loans provided by Bank of Ireland UK. This means that when you take out an AA loan, you are not borrowing money from AA, you are borrowing money from the Bank of Ireland. When you take out an AA loan, you then pay back the amount in monthly instalments plus interest.

How much can I borrow?

You can borrow as little as £1,000 and up to £25,000 through the AA. You should think carefully about how much you need to borrow before you apply.
With an AA loan, the amount borrowed indicates the maximum repayment period. For example, if you borrow £5,000 or more, your repayment period can be as long as seven years. However, if you borrow up to £2,900, the maximum repayment period is three years.

What are the interest rates on an AA loan?

Many factors affect the interest rate you can get on an AA loan, including how much you want to borrow, how long you want to borrow and your personal financial situation.
Regardless of your interest rate, it is fixed for the life of your loan.
AA loans differ from other providers in that if you are an AA member you get the broker’s best rates.

Can I get joint credit from AA?

Currently, you cannot get a joint loan through AA.
ANDsolidarity loan is a form of borrowing where several people sign the loan and are jointly and severally liable for the repayment of the debt.
Common types of joint loans include joint mortgages and joint bank account overdrafts. However, it is also possible to apply for a solidarity private loan.

Can I get an AA-backed loan?

Currently, you cannot get a loan guaranteed by the AA.
Unlike an unsecured loan, a secured loan requires you to put down valuable property like your home as collateral when you apply for the loan.

What bonuses can I get with an AA loan?

When you borrow from AA, you get 12 months of free Basic Roadside Protection.
If you’re already an AA member, you can instead choose National Recovery, At Home, or Onward Travel as an add-on for the rest of your membership.

Pros and cons of AA loans

Be sure to weigh the pros and cons of an AA loan before applying.


  • There are no placement or setup fees when taking out a loan through AA.
  • When you take out an AA loan, you get free roadside assistance or a top-up if you’re already a member.
  • If you are already a member of AA, you might be able to take advantage of the broker’s lowest interest rates.

The inconveniences

  • The AA is more of a credit broker than a direct lender.
  • You cannot get a personal loan guaranteed by the AA.
  • If you choose to pay off your loan early, you may be charged interest for up to 58 days.

How do AA loans work?

Once you have submitted your AA loan application, the broker will assess your eligibility, including completing credit checks.
If your application is accepted, you will be offered a loan with an individual interest rate based on your financial situation. You have the option to accept or reject this proposal.
If you accept your offer, a loan agreement will be sent to you. You must sign this agreement and return it to the AA to release your funds.
Also note that you have a cooling-off period of 14 days to cancel your loan from the date you sign your loan agreement or receive a copy of your agreement, whichever is later. If you cancel the loan, you have 30 days to repay the principal and interest.

What happens if I miss a payment?

You will be charged £12 for each missed or unpaid repayment, while any overdue amount will accrue interest at the rate stated on your loan agreement.
If you continue to miss payments, you may receive a reminder asking you to pay by a specific date. If you fail to do this, the lender can demand immediate full payment or terminate the loan agreement. Legal action may also be taken against you to collect the unpaid debt.
Additionally, missed payments can negatively impact your credit score, making it harder to borrow in the future.

Can I pay off an AA loan early?

A full prepayment of your AA loan is available at any time. In this case, however, you may be charged interest for up to 58 days.

What can I use an AA loan for?

There are a number of different things you can do with an AA loan, including:

To buy a car

Buying a car with your AA loan might be the first thing that comes to mind because of the company’s history. However, it’s important to know that you’re not limited to vehicle-related expenses.

DIY work

Whether you’re looking to convert your attic, add a sunroom, or update your kitchen, you can use your for various home improvement projects.


If you need help paying for your big day, consider using your AA loan to help pay for some of your wedding expenses.

Debt consolidation

If you have multiple debts with different lenders, you may consider using your debt consolidation. In this case, you pay off your existing debt to make a simplified monthly payment instead.
Before you do so, however, it is important to calculate whether the cost of this one-time loan will be greater than the cost of the debt being paid off and whether you will incur any costs in prepaying your other debt.
Although you still want to do debt consolidation even if the overall cost is higher, it’s always good to know exactly how it will affect your finances before making a decision. You should also try to avoid further borrowing if you decide to consolidate your debt in this way.

How to Apply for an AA Loa

When applying for an AA loan, you will likely need to take the following steps:

  • You submit your application with the required information and documents.
  • The AA will assess your eligibility for credit, including conducting a credit check. You will either receive an immediate decision online or you will need to provide the AA with additional information. If you need to provide additional information, the AA will contact you via email within five days of your request.
  • The AA will deny or approve your application. If authorised, a loan agreement will be issued to you.
  • You must read the Loan Agreement carefully and if you are satisfied sign it and mail it back to AA.
  • The AA will attempt to disburse the funds into your bank account within two days of receiving your signed loan agreement.

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