Sainsbury’s cuts personal loan rate

Sainsbury’s Bank has bucked the trend and cut its personal loan rate. From 18th December, online applications for Sainsbury’s Loans of £7,000 or more (up to £25,000) will be cut to 6.5% APR typical from 6.9% APR typical.

This is a limited offer and is one of the lowest rates in the market for balances of £7,000 and above.

According to MoneyExpert.com, the average rate charged on personal loans has nearly reached double figures as lenders respond to the global credit crunch. In addition to rates rising, the money aggregator site says that some providers have pulled out of the personal loan market altogether.

In addition to one of the most competitive rates in the marketplace, customers taking out a Sainsbury’s Loan now can choose to make no repayments until around Easter (for the first three months), receive an instant decision and have their cheque delivered to their door within 24 hours.

Steven Baillie, Head of Loans, Sainsbury’s said: “We are committed to providing our customers with great products and are delighted to be able to offer this market leading rate while other loan rates may be rising; at a time when our customers are getting ready for Christmas and planning for 2008."

For further information, visit sainsburys.co.uk.