Sainsbury's Bank cuts personal loan rates until end of January

The supermarket has shot to the top of the medium-sized loan best buy tables with a limited-time offer.

Sainsbury’s Bank has slashed the interest rates on its medium-sized personal loans.

The changes follow hot on the heels of its supermarket rival Tesco cutting its loan rates, and means Sainsbury’s now takes top spot in the best buy tables.

So if you want to borrow between £7,500 and £15,000, have a good credit rating, have a Nectar card you've used in the last six months and can repay the loan in up to three years, you could qualify for a market-leading rate of 4.6% from Sainsbury’s.

If you want to repay between three and five years, the rate is now 4.7%. Repay over five years and the rate goes up to 6.7%.

Two types of loan

These lowest rates are available on what Sainsbury’s calls its Shopper Standard loans, which are open to anyone who holds a Nectar card. If you don’t already have one, you need to get hold of it and use it either in store or online before you can qualify.

Sainsbury's has also cut the rates on its Shopper Reward loans. These offer a range of Nectar benefits, but more importantly come with far higher rates. For example, a loan repaid over three years has a representative APR of 4.9%, compared to 4.6% on the Standard loan.

These reduced rates are available from now until 3pm on 31st January.

Top medium-sized loans over three years

Here’s how the best buy tables for medium-sized loans now look, starting with loans repaid over three years.

*Current account customers only

**M&S Bank customers only

***AA members only

Top medium-sized loans over five years

And here are the top rates over five years.

*Current account customers only

**M&S Bank customers only

***AA members only

Will I get the best rate?

The rates shown above are the representative APR for each loan, which has to be offered to 51% of all applicants. However, to be one of those people you'll need a good credit rating. If your credit rating isn't spotless, you may still be offered a loan but at a higher rate. For tips on how to improve yours, read  How to build an excellent credit history.

Compare personal loan rates

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