Sainsbury’s Finance has announced a new personal loan rate of 6.9 per cent.
The rate, which is only available to Nectar Card holders, will be on offer until 29 March and is representative on loans of between £7,500 and £14,999. Consumers who take a loan out also get double Nectar points on all shopping and petrol for the next two years. The Sainsbury’s Finance loan can be applied for via its website as well as through aggregator sites.
Steven Baillie, Head of Loans at Sainsbury’s Finance, said: “We continually offer competitive rates for our customers and reward them for their custom, so the new rate is great news for Sainsbury's shoppers.”
The announcement marks increasing competition in the personal loans market. Nationwide and Santander both dropped their personal loan rates to 7.2 per cent earlier this month, whilst Marks and Spencer went lower still with a rate of 6.8 per cent.
Michael Ossei, a lending expert at uSwitch.com, called the announcement a “bold move” by Sainsbury’s. He said it was good news for consumers and could force personal rates down even further. However, he added that despite good deals on rates, people should still think carefully before borrowing and consider what the right product is for them.
