Loans less than 8% at Sainsbury's

Tuesday, 26, May 2009 11:56

Sainsbury's is offering interest rates of 7.9 per cent on unsecured loans to customers applying online with a Nectar card.

The lender has claimed it is one of only four firms in the UK which is offering personal loans below eight per cent for customers who wish to borrow between £5,000 and £15,000.

According to its research, in May 2008 there were 42 lenders offering rates of below eight per cent APR. But in May 2009 only seven per cent of lenders were able to offer such low interest.

And that is despite the Bank of England slashing interest rates 4.5 per cent over the same period.

Sainsbury's said its personal loan, however, offered interest at a typical rate of 7.9 per cent for shoppers applying online with a Nectar card.

Steven Bailie, head of loans at Sainsbury's said: "Our current analysis highlights the fact that the loans marketplace is actually much less competitive than it was 12 months ago."

He added: "Anyone considering taking out a loan today needs to ensure more than ever before that they shop around to take advantage of the best rates out there."