Supermarket bank turns up the heat in the price war on larger loans.
Tesco Bank has slashed the cost of its personal loans for those looking to borrow between £15,001 and £25,000.
Clubcard holders can now get a rate of 3.4% (a huge drop down from 4.8%) when borrowing over up to eight years, while non-Clubcard holders will get a rate of 3.6% (down from 5.9%).
Those looking to spread their borrowing between eight and 10 years can get a rate of 5.4% if they’re Clubcard holders (down from 6.8%), while non-Clubcard holders will get a rate of 5.6% (down from 7.9%).
New price war on large loans
In recent years we’ve seen providers locked into a race to the bottom when it comes to medium-sized loans between £7,500 and £15,000.
[SPOTLIGHT]The market-leading deals in this sectors are currently at record lows of 3.3%.
But now it seems the competition has shifted, with providers vying for borrowers looking for larger loans of more than £15,000.
Sainsbury’s Bank, Cahoot and First Direct have all reduced rates to 3.4% on larger loans in the last couple of months.
With Tesco Bank the latest to join the ranks of the best buys, it could cause other providers cut rates further in line with medium-sized loans or even lower!
How Tesco compares
Here’s how Tesco compares on loans of £17,500 over five years.
|
Provider |
APR |
Monthly repayment |
Total amount repayable |
|
3.4% |
£317.17 |
£19,030.20 |
|
|
3.4% |
£317.17 |
£19,030.20 |
|
|
First Direct Personal Loan* |
3.4% |
£317.47 |
£19,048.21 |
|
3.4% |
£317.89 |
£19,073.40 |
|
|
3.6% |
£318.68 |
£19,120.80 |
|
|
3.6% |
£318.97 |
£19,138.20 |
|
|
3.6% |
£318.99 |
£19,139.40 |
*Availble to 1st Account holders only
For all the latest on the best rates for small, medium and large loans take a look at The cheapest personal loans.
What you need to know before you apply
Whether you're on the hunt for a small, medium or large loan bear in mind that you might not get the headline rate you apply for.
That’s because lenders only have to offer their top rate to 51% of successful applicants.
So if you have never borrowed money before or you’ve been late with repayments you might be offered a worse deal.
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