Clydesdale and Yorkshire banks have cut the rates available on personal loans between £7,500 and £15,000.
The new rate is just 5.7 per cent APR and is only available to customers who apply online. The rate is fixed for the whole term of the loan and is available to both new and existing customers.
The loan can be repaid over a term of between one and five years and early repayment options are available.
Steve Reid, Retail Director for Clydesdale Bank, said: "At Clydesdale and Yorkshire Banks, we are focused on delivering a range of competitive products which meet the needs of our customers.
"Our competitive online loan product highlights that we are committed to helping both new and existing customers to organise their finances and a decision within 24 hours allows them to do this in a timely manner."