Sainsburys Adds 0.3 Per Cent To Personal Loan Rate

Thu, 31 Mar 2011

Sainsbury's Finance has increased its best-buy loan rate by 0.3 per cent, bringing an end to its interest rate battle with Marks and Spencer Money .

The lender is now offering borrowers with a Nectar card an APR of 7.1 per cent on unsecured personal loans of £7,500 or more with repayment periods of one to three years.

Personal loans between £7,500 and £14,999 over longer periods come with a slightly higher APR of 7.2 per cent, but both deals are still among the best offered by UK banks .

Sainsbury’s is also offering all Nectar cardholders who take out medium-size loans double Nectar points and a £30 grocery shopping voucher.

Martyn Saville, credit expert at consumer group Which?, said: "It was only a matter of time before the price war over unsecured loans had to come to an end."

"The three market leaders for medium loans, Sainsbury's Bank, M&S Money and Tesco Finance, have all reduced their rates in recent months, often within hours of each other."

He added: "With Libor creeping slowly upwards, it's unlikely that the best loan rates will fall any further."

"If you're thinking about taking out a loan in the coming weeks, I'd get in quick before other lenders follow Sainsbury's example."
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