Personal loan providers are battling it out for customers with significant interest rate cuts on offer for large loans.
The interest rate cuts are mainly on loans of more than £7,000 and reductions have ranged from 0.1 per cent to as much as 2.4 per cent. Analysis from Moneynet.co.uk shows that the best personal loan deal currently on offer is from Sainsbury's Finance at 7.4 per cent APR.
The biggest overall rate slash has come from M&S Money, which has cut interest by 2.4 per cent. This represents a saving of £522 per year on a five-year loan of £7,500, or £695 on a five-year loan of £10,000.
Andrew Hagger of Moneynet.co.uk commented, "It's welcome news for customers to see loan rates falling at long last from some of the largest providers in the market. It's a shame that the rate cutting has, apart from Tesco and M&S Money, been targeted at existing customers only."
He added that another downside was that the cuts do not seem to be applying to smaller loans for amounts such as £2,000 and £3,000, which are still seeing interest rates of up to 20 per cent.
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