Barclays Reduces Personal Loan Rates

Wed, 10 Oct 2007

Barclays has cut its interest rate on personal loans by up to 0.6 per cent – in contrast to other lenders who have recently raised their rates .

The bank is offering a rate of 6.8 per cent to existing customers and is confident it can attract new borrowers with the best deals in the market.

Barclays says that's it been able to take advantage of its strong balance sheet, and finance loans from its ‘very strong deposit taking business .'

The UK bank is also keen to demonstrate its confidence in the competitiveness of its products, according to Barclays Personal Loans director Garry Duggan.

"If you take out a loan from Barclays and then find it cheaper elsewhere, we will pay the difference between the monthly repayments and then pay an additional £1 each month for your trouble," he explained.

The surprise move comes after a month in which several lenders have raised the interest rates on their personal loans due to continuing uncertainty in the financial markets following the recent global credit crunch.

Nine UK lenders have increased their rates for unsecured loans, some by as much as four per cent, according to internet comparison site, UK Personal Loans Store.
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