Lowest-ever loan rate to be pulled on Monday

Sainsbury's Online Rate Sale ends on Monday, meaning the cheapest ever personal loan will disappear.

Sainsbury’s is to increase the rates on its personal loans on Monday, meaning you have just a few days left to take advantage of the lowest-ever rate.

For loans of between £7,500 and £15,000 repaid over four or five years, Sainsbury's is offering a representative APR of 4.9%.

Here’s how this shapes up to the competition, based on the example of borrowing £10,000 over a five-year term.

However, if you can pay that loan off in between one and three years, you can cut the rate down to just 4.8% – the lowest ever offered on a personal loan.

The table below details how things change if you can pay that £10,000 off in three years.

As you can see, Sainsbury’s tops the tables whether you can pay the loan off over one year or five, so it’s a shame that its deals will be pulled imminently. However, in truth the difference between the monthly repayments on its loans and the other best buys is a matter of pence, so there are still plenty of great options if you’re in the market for a loan.

Will you get the representative APR?

One thing to bear in mind is that not everyone who applies successfully will actually get that advertised rate. Lenders are only obliged to offer the rate to 51% of successful applicants. So even if they say yes to your application, you may get lumbered with a higher rate.

The decision will come down to your credit score.

To check how your credit score shapes up, you can get a free 30-day trial with Credit Expert thanks to Lovemoney.

And if your credit score needs work, check out Ten simple steps to improve your credit record.

Compare personal loans with Lovemoney

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