Personal Loan Rates Drop to Historic Low as Fight for Top Spot Continues
CHESTER, England, November 13, 2012 /PRNewswire/ --
- Sainsbury's market-leading 5.4 per cent APR for loans between £7,500 and £15,000 over 1-3 years
- Move by Sainsbury's follows M&S Bank and Derbyshire Building Society slashing their loan rates this week
The best buy personal loan rate has fallen to the lowest level for over decade following the launch of the market-leading loan from Sainsbury's Bank, with a rate of just 5.4 per cent. The move by Sainsbury's follows in the footsteps of M&S Bank and Derbyshire Building Society who both dropped their rates on loans between £7,500 and £15,000 to a low of 5.5 per cent last week.
The average top 10 personal loan rates for anyone borrowing over £7,500 has fallen to 5.90 per cent. The last time the average rate was this low was in January 2006. In addition, the lowest rate of 5.4 per cent represents a fall of 2.60 per cent since loan rates rose to a high of 8.50 per cent in April 2010 - saving borrowers over £300 on a £7,500 loan taken over three years.
The Sainsbury's Bank personal loan offers a rate of 5.4 per cent on borrowing between £7,500 and £15,000 for loans taken between one and three years. Anyone looking to borrow over a longer period, the rate is 5.5 per cent. The loan is only available to Nectar card holders.
Tim Moss, head of loans and debt at MoneySupermarket, said: "Over the past two years we have seen personal loan rates fall dramatically, but the move by Sainsbury's Bank has taken these falls to a new level. With Sainsbury's, M&S Bank and Derbyshire Building Society all cutting their rates recently, it is not beyond the realms of possibility to see rates fall further, which is great news for borrowers.
"However, the best deals are generally only available to consumers with excellent credit histories. Before applying for a loan, or for any credit product, it's a good idea to check your credit history so you have a clearer idea of the products you are more likely to be accepted for based on your credit score."
MoneySupermarket compares the providers of credit reports at http://www.moneysupermarket.com/credit-monitoring/
Notes to Editors
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