Personal loan market heats up

Wed, 13 Apr 2005

HSBC has announced it is to cut its personal loan rate by up to 40 per cent.

Personal loans over £7,000 will receive this massive cut, helping to further fuel the already competitive loan market.

These HSBC loans will now only incur a rate of 6.9 per cent APR.

"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," explained the head of customer propositions, Joe Garner.

"We promised to bring modern retailing and strong value to banking, and here is another example," he added.

The bank gave the example of a customer with a £7,000 loan over five years. Under the new rate they will save £939 in interest.

That works out at £138 a month rather than the previous rate of £153.

Alternatively, the same customer could choose to pay back £150 a month, thereby paying off their loan six months earlier and saving £1,068 in interest in the process.

Mr Garner concluded: "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.

add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

Credit Crunch Savers
HSA Dental Plan
Get covered from £7.70 per month!
Amex Cash Back
Credit Card
Get 5% cash back on purchases with Amex
Income Protection Insurance
Get an instant quote with the award winning company