Sainsbury’s Bank puts more loan rates on sale

Sainsbury’s has added Standard medium-sized loans to its personal loan rate sale. But you only have until 18th November to take advantage.

Sainsbury’s Bank has extended its personal loan rate sale.

From now until 18 November the supermarket is offering rates starting from 4.8% for medium-sized Standard loans between £7,500 and £15,000.

The Standard loans will be available to new customers that hold a Nectar card.

Sainsbury’s loan sale

Sainsbury’s announced it was launching personal loan sale only a few days ago.

Small and large Standard loans were cut by up to 0.5%. While small, large and medium Reward loans were reduced by up to 1.3%.

Reward personal loans offer 5,000 Nectar bonus points and entitle the loan holder to double Nectar points when shopping at Sainsbury's for two years. However, they come with slightly higher interest rates.

Medium-sized Standard loans were conspicuous by their absence, but they have now joined the sale line-up.

Those looking to borrow between £7,500 and £15,000 over one to three years have the potential to get a rate of 4.8% down from 4.9%. While those looking to borrow the same amount over four to five years will get a rate of 4.9% cut from 5.1%. The same amount spread over six to seven years will get a rate of 6.9% down from 7.4%. 

But you haven’t got long to take advantage, as these as well as the Reward loans are only on sale for a short time until 18 November.

I have detailed the rate cuts across the range in the table below and highlighted the latest additions.

You can see how the cuts on small and large Standard loan as well as small, large and medium Reward loans compare in this article: Sainsbury's Bank cuts loan rates for limited time.

But how do the new medium-sized Sainsbury’s Shopper Standard Loans compare to the rest of the personal loans market? I have looked into borrowing £7,500 over three, five and seven years to see.

£7,500 over three years

*Only available to current account customers

**Only available to M&S Credit Card, M&S Storecard, M&S Current Account or M&S Loan customers

Sainsbury’s comes joint first for the leading rate for those looking to borrow £7,500 over three years as HSBC and peer-to-peer lender Zopa also offer a rate of 4.8% on these terms.

£7,500 over five years

*Only available to current account customers

**Only available to M&S Credit Card, M&S Storecard, M&S Current Account or M&S Loan customers

HSBC offers the leading rate for those looking to borrow £7,500 over five years, however this deal is again only available to existing current account customers.

If you’re not a HSBC customer Sainsbury’s Bank and Zopa have the next best rate available.

£7,500 over seven years

* Only available to M&S Credit Card, M&S Storecard, M&S Current Account or M&S Loan customers

**Personal loan only available to existing customers

If you wanted to spread borrowing £7,500 over seven years M&S Bank offers the best rate. However it is only available to existing card holders.

So if you don’t fit this criteria Sainsbury’s offers the most competitive rate in this sphere.

In fact apart from Sainsbury’s every other loan in the top five line-up require you to be an existing customer in order to access the leading rate.

Read more about this preferential treatment in: Best buys that are only for banks and building societies' existing customers.

Compare personal loans

More on borrowing:

The best reward credit cards

The best 0% purchase credit cards

The best alternatives to payday loans