The personal lending market is quite competitive and most institutions do not require customers to have an existing account before they apply for an unsecured loan.

The difference in interest rates may not look like much in the monthly repayment, but over a five-year term it can add up to hundreds of pounds.

If you do get a quote from a lender, ensure you can verify the total cost of the loan by noting the interest payable. On a £10,000 (€12,697) loan over five years, you could typically expect to pay about £2,600 in interest.

You may also end up paying interest on the protection policy, as you are basically borrowing the money to buy that insurance policy.

First Active and TSB offer the lowest variable APR of the list. With variable loans the monthly repayment is generally fixed, and depending on which direction interest rates go over the term, the borrower may have some extra payments to make or may clear the loan early.

The Irish Permanent, National Irish Bank, First Active and Ulster Bank are all competitive on fixed-rate loans, but do not forget to add in the cost of payment protection if you want it.

The cost of payment protection varies from lender to lender and many people don't bother buying it. Of the institutions surveyed by Family Money, First Active offered the cheapest loan protection for fixed and variable loans of £10,000 over five years at £18.20 and £16.20 respectively, while GE Capital Woodchester was by far the most expensive at £33.10.

By paying this extra amount you have the security of knowing your loan would be cleared in the event of death, disability or redundancy. If you have other types of insurance for these eventualities then you may not need it.

Payment protection is recommended by the institutions because most of them make commission on it and it protects them from the risk of bad debts. It's up to the individual to decide whether the insurance is worth it.

There is more to consider than the interest rate and payment protection when taking out a personal loan. Some customers may value a relationship with their own bank branch and the level of customer service. For those whose income is unpredictable, it makes sense to choose the most flexible type of loan so that they are free to make lump sum repayments or pay the loan off early.