Sainsbury’s Finance is offering Nectar card holders a reduced personal loan rate of 7.9% APR until the end of February 2010.
The new Sainsbury’s rate is available to those who apply for loans of between £7,500 and £15,000. The 7.9% APR is about 2% lower than rates at most high street banks. And customers taking out the new loan before the end of February will also receive double Nectar points on their Sainsbury’s shopping for two years.
To find out whether a personal loan is the best option for you, read our guide to your loan options. And to compare Sainsbury’s Finance loans with other providers’ loans, check out Which? Best Buy personal loans.
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The offer, which isn’t available through aggregator sites, covers purchases in stores and online, and petrol, and could work out well for those who shop at the supermarket chain. Customers who spend £50 a week with Sainsbury’s and have a Sainsbury’s personal loan as well as a Nectar card, would receive £52 worth of Nectar points a year.
Martyn Saville, Which? senior researcher, commented: ‘Sainsbury’s already tops the Which? Best Buy tables for personal loans, so this new offer extends the supermarket’s lead over the competition even further. Bonus point promotions rarely make an uncompetitive product competitive, but in this case it really is a bonus as the product itself is market leading.
‘It’s a shrewd marketing win-win for Sainsbury’s – the banking arm gets new loans business, while the supermarket enjoys greater sales as loan customers may shop more frequently to earn the extra Nectar points.’
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