Sainsbury's one of just four lenders in "Sub 8% Loans Club"

New research from Sainsbury's Loans reveals that there are currently just four lenders, of which it is one, offering an APR of less than 8% on unsecured loans on loan amounts between £5,000 and £15,000.

Despite the Bank of England base rate having dropped by 4.5 percentage points to 0.5% from 12 months ago, the Bank's research highlights that the actual number of lenders offering personal loans of less than 8% APR has reduced significantly. In May 2008, when the Bank of England base rate was 5%, there were 42 lenders (representing around 57% of the available unsecured loans) offering an APR of less than 8% on loans amounts between £5,000 and £15,000; in May 2009 only 7% of lenders can claim to be offering a sub-8% rate.

According to MoneyExpert.com the average rate on non-secured personal loans between £5,000 and £15,000 is currently 10.14%. Sainsbury's Finance offers a personal loan rate of 7.9% APR Typical to Sainsbury's shoppers applying online with a Nectar card for loans of between £5,000 and £15,000.

Steven Baillie, Head of Loans, Sainsbury's Finance, said: "Our current analysis highlights the fact that the loans marketplace is actually much less competitive than it was 12 months ago. The number of lenders offering a sub-8% APR rate on a personal loan has fallen off significantly compared with 12 months ago, so 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."

In addition to one of the most competitive rates in the marketplace, customers taking out a Sainsbury's Finance Loan benefit from:

A personally tailored repayment period, from one to seven years
Fixed repayments for the whole period of the loan
An instant personal loan decision
The money in 24 hours

For further information on Sainsbury's Finance Loans, visit sainsburysbank.co.uk