Nationwide cuts its personal loan rate

With effect from today, Tuesday 11 January 2011, Nationwide is cutting its personal loan rate for its main current account customers to 7.2% APR typical.  This new rate, for loans of up to five years between £7,500 and £14,999, means that Nationwide is once again offering the UK's lowest personal loan rate.  The same low rate applies whether the loan is taken out through a branch, over the telephone or via the Internet.

At the same time, people who do not have a Nationwide FlexAccount can benefit from a rate of 7.3% APR typical only 0.1% above its headline rate.  This rate is only available for those who apply through moneysupermarket.com and applies to loans between £7,000 and £14,999 for a term of up to five years.

The beginning of the New Year is often the period when people look to consolidate their debt as it can reduce both monthly outgoings and the overall interest payable.  In November 2010 alone, just under one in three personal loans applications to Nationwide were for debt consolidation.

Graham Pilkington, Nationwide's divisional director for banking, said:  "With economic conditions remaining tough, our new personal loan rate is a great start to the New Year, especially for those people who want to consolidate those debts accumulated in the run up to Christmas.  For anyone with credit card debt, taking out a loan at such a competitive rate means that those people could potentially convert those monthly outgoings into one manageable debt with fixed monthly repayments.

"Nationwide has regularly been competitive in the personal loans sector and this new market leading rate means that doesn't change.  Certainly no other supermarket or lender on the high street can beat our rate, which further underlines the benefits of having a Nationwide current account."