Get the best personal loan!

If you are on the hunt for a personal loan, here's a round of the best deals available...

Personal loans can be a brilliant tool when used in the right way. Forget about using them to pay for a holiday, or a similar luxury - that's not what they're there for.

But if you do have a genuine need to borrow between £7,500 to £15,000 - sums that credit cards just won't do the job for - then a personal loan is the financial product for you.

And handily, there's a host of brilliant deals available at the moment.

7.9 is the magic number

Those in need of a personal loan got a boost earlier this month when Nationwide announced it would be extending how long it would be offering its 7.9% APR loan, a product only available to customers who already have a current account with the mutual.

This is good news, as there is currently a decent selection of loan providers all offering deals at 7.9% APR - it's the rate of the month, clearly!

However, as with the Nationwide deal, you have to watch out for the catches, as a host of the best personal loans are only available to existing customers of the loan providers.

The top deals

Below I've put together a table of the cheapest personal loans, and what you need to do in order to qualify for the deal.

Now, the easiest option here, by a country mile, is the Sainsbury's loan - it doesn't take a minute to sort out a Nectar card. Obviously, if you already have a current account with Nationwide, then that deal is excellent for you as well, but I wouldn't advise those of you that bank elsewhere opening a new account just for the sake of getting your hands on their loan.

Of course if these loans remain out of reach, there are a couple of deals at the same typical APR that are available to the general market. They are the Alliance & Leicester Personal Loan and the ASDA Personal Loan.

Both of these 7.9% loans don't require any extra loyalty on your behalf - you don't need to have an Alliance & Leicester current account, or be a regular shopper at ASDA, which is welcome!

While it is a real shame - and not a little annoying - that many of the best rates are limited to existing customers, you do at least have a few options should you need to sign up for a loan.

So now you know the best buys, what else do you need to worry about? I've put together my three top tips to remember when shopping for a personal loan.

#1 - Make sure a loan is your best bet

If you need less than £5,000, then a loan is almost certainly not your best bet.

Instead, you should try to cover that spending on a credit card. The best 0% on purchases card at the moment is the Tesco Clubcard credit card, with 12 months of interest free purchasing.

You could also spend the money on an existing card, but move the debt over to a 0% balance transfer card. In this case, the Virgin Money credit card is the best in the market, with 16 months at 0%.

#2 - Compare the TARs

It's not just the APR that you should be looking at when comparing personal loans - you also need to make sure you are taking into account the Total Amount Repayable - the TAR.

This is the one way of being completely, 100% clear on just how much your deal is going to set you back over the course of the loan.

The TAR includes the interest you will pay, and also the non-optional fees that you will be charged, so it really is invaluable when considering whether this is the right deal for you.

#3 - Keep it short and sweet

Borrow as little as possible, and over as short a time frame as you can manage, and you will keep your interest payments to a minimum.

There is absolutely no point in borrowing more than you need - chances are you will only end up spending it on something you don't really need, consigning yourself to being in debt longer than you need to be, and paying more than you could have.

Stay disciplined, and your loan will be paid off in no time!

More:  When you should say no to a best buy loan | Beware this £1 billion credit card rip-off!