Tesco Bank cuts interest rate on loans up to £15K

Tuesday, 27 September 2011 11:32

Tesco Bank has slashed its interest rate on loans between £7,500 to £14,999 from 7.4 per cent APR to 6.7 per cent APR representative.

That means a four-year loan of £10,000 would incur monthly payments of £237.16, with a total amount repayable of £11,383.68, it revealed.

And while this rate applies to new customers, existing customers can take out loans of the same value at a specially reduced rate of 6.6 per cent APR.

Tesco loans have fixed monthly payments and no set-up charges, while customers have the ability to choose the repayment date, as well as take the option of a payment break at the start of the loan period.

Last month, Nationwide cut the rate of its personal loans to just 6.3 per cent APR for existing FlexAccount customers, the lowest rate ever offered by the building society.

That rate increases to 6.4 per cent APR for new customers if they take out the loan through an online aggregator.

Use the Myfinances.co.uk comparison tables to find the best deal on a personal loan

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