Sainsbury’s Bank has cut the rate on personal loans between £7,499 and £14,999, edging ahead of Tesco Finance on the Which? Best Rate personal loans table.
A £10,000 personal loan repaid over five years will cost you 7.7% APR with Sainsbury’s (if you hold a a Nectar card) and 7.8% with Tesco, both market-leading deals.
- UPDATE 31 December: Tesco has reacted to Sainsbury’s loan rate cut by reducing its own APR on loans of £7,500 to £14,999 to just 7.6%, taking it back to the top of the Which? Best Rate loans table.
Alternatives to personal loans
Which? Principal Researcher Martyn Saville commented: ‘Once again, the supermarkets are setting the standards for unsecured personal loans.
‘If you’re planning to borrow smaller amounts, it’s worth considering the alternatives, including credit cards, in-store interest-free credit, credit unions or peer-to-peer lending sites such as Zopa.’
Get free cash on your credit card instead
Earlier this month we explained how you could pay spread the cost of Christmas interest-free, as well as earning money on your shopping. The same rules apply to shopping in the January sales. For more details, read our news stories Pay no interest for a year on Christmas shopping and Get up to 5% rewards on your Christmas shopping.
For details of the best personal loans currently available, read the Which? personal loan reviews.
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