Sainsbury’s financial offers come out on top in a battle to attract borrowers wanting a personal loan.
Joining many other lenders, Sainsbury’s provide a promising hope that the squeeze on unsecured credit could be lifting.
Sainsbury’s rate is at a low of 7.4%, dropping 0.3% since last year, however it is available to Sainsbury’s customers with a Nectar card only.
Borrowers who choose to use Sainsbury’s to ease their financial struggles will get double Nectar points on Sainsbury’s shopping and fuel for two years.
It has been revealed that shoppers spending £50 a week in store would earn the equivalent of £52 worth of extra Nectar points each year.
Marks and Spencer money run closely behind Sainsbury’s offer with the interest dropping a substantial 2.4% from last year’s rate, these figures are applied to loans which fall anywhere between £7,500 and £15,000.
M&S offer a long period of repayment, letting customers repay the amount over 12 to 84 months and even offer the option of paying nothing back for the first three months, though still being charged interest during this time.
Nationwide and Tesco fall just 0.1% short of M&S’ rates by charging 7.6% on loans of this size.
Rates of personal loans are typical rather than fixed, meaning that there is no guarantee that the rates initially quoted will remain constant.
High Street banks are wary of distributing loans to new customers, and are restricting their lending primarily for existing customers.