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Personal loan war hots up as Sainsbury’s cuts rate

Loans over £7,500 charged at just 6.8%

Sainsbury's Bank ATM

Sainsbury’s Bank offers excellent value on larger unsecured personal loans

Sainsbury’s Bank has slashed the rate on unsecured personal loans over £7,500, further stoking its loans price war with Marks & Spencer Money (M&S) and Tesco Finance.

Unsecured personal loans at 6.9% APR

The new deal from Sainsbury’s Bank brings the interest rate (APR) on personal loans above £7,500 down to 6.8% for repayment periods of one to three years (for Nectar card holders only). Loans over longer period attract a slightly higher APR of 6.9%, still the best on the market and joint top of the Which? personal loans table for medium loans with Marks & Spencer Money. The offer applies to personal loans between £7,500 and £14,999.

Martyn Saville, Which? credit expert, commented: ‘This new deal from Sainsbury’s Bank offers excellent value and puts it back at the top of the Best Rate table. M&S Money, Tesco Bank and Sainsbury’s Finance continue to dominate the loans market, offering borrowers great value on larger loans and putting most high street banks to shame.’

Smaller personal loans more expensive

At the same time as slashing the rate on larger loans, Sainsbury’s Bank has put up its rates on smaller amounts. Loans between £1,000 and £2,999 for terms of one to three years are now charged at 18.6%. For terms of over three years, the rate is 18.7%.

Loans of £3,000 to £4,999 are charged at either 12.8% or 12.9% depending on the term.

Save money with Best Rate loans and credit cards

Read our Personal loan reviews for all the latest deals.

If you’re thinking about getting a new credit card instead, find out how much money you could save by switching using the free Which? credit card switching calculator. You can then find the best deals by reading the Which? 0% balance transfer credit card reviews and our reviews of the best credit cards for using abroad.

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