HSBC has cuts its loan rate by up to 40 per cent for personal loans over £7,000.
It has decided to drop rates from between 8.9 and 11.9 per cent to a typical rate of 6.9 per cent APR.
It follows several months of innovative products and promotions, including the UK's first January Sale, an eight per cent rate on savings, and the high street's best-value variable rate mortgage.
"We promised to bring modern retailing and strong value to banking and here is another example," said the head of customer propositions, Joe Garner.
"More than half of the loans we give customers are for £7,000 or more and that is where we have made the biggest cut in our rates, at a time when other lenders are increasing theirs," he added.
According to HSBC, a customer with a £7000 loan over five years will save £939 in interest (£138 rather than £153 a month) with the new rate.
"We are aware that the majority of customers choose high street banks for their personal loans so we wanted to make this rate universally available and not simply for online borrowers," Mr Garner continued.
He explained that any customers can now apply through HSBC branches, by phone or online.
HSBC offers 40 per cent loan rate cut
HSBC offers 40 per cent loan rate cut
Mon, 11 Apr 2005
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