If you’re a Nectar card holder looking to borrow between £7,500 and £15,000, Sainsbury’s Bank is now offering a top personal loan rate of 3.5% APR representative, so long as the loan is repaid over one to three years.
This is a reduction from the previous 3.6% APR representative.
Should you need to borrow more than £15,000, the 3.5% rate also applies to borrowing of between £15,001 and £19,999 repaid over two to three years. This is down from 5.8% APR representative.
Both of these options can also be repaid over three to five years at the slightly higher rate of 3.6% APR representative.
Is this for you?
If you need to borrow a lump sum, perhaps to fund a new car or home improvements, this is the market leading rate available from a bank or building society.
But bear in mind you’ll need an excellent credit score to qualify.
What makes it special?
This is the lowest loan rate available from a bank or building society for borrowing amounts of between £7,500 and £19,999 over one to three years.
You’ll also be offered a two-month repayment holiday at the start of your loan, which means you won’t have to make a repayment during that time.
However, interest will still be charged between the start date of your loan and your first repayment so consider this option carefully before agreeing to anything. (T&Cs apply.)
Watch out for
You’ll need to be a Nectar card holder to qualify for these top loan rates. But don’t worry if you don’t have one as you can easily order a Nectar card online or pick up one in Sainsbury’s stores.
Also remember that the rate you are offered may not be the same as the one advertised - only 51% of successful applicants need to qualify for the rates in order for providers to advertise them. The very best rates are reserved for those with impeccable credit ratings.
If you’re worried your credit rating isn’t as good as it could be and you might not get accepted for a loan, use the MoneySuperMarket Smart Search tool before you apply. This will tell you how likely you are to be accepted without leaving a mark on your credit file. You can read more about this here.
If you borrowed £10,000 over three years with Sainsbury’s Bank at 3.5% APR representative, you’d pay back £292.78 a month and a total of £10,540 over the three years.
What else is worth a look?
If you’re not a Nectar card holder and don’t wish to become one, you can still take advantage of competitive personal loan rates.
You’ll need to be a Nectar card holder to qualify for these top loan rates.
If you’re looking to borrow between £7,500 and £15,000 over one to five years, Sainsbury’s Bank offers a rate of 3.6% APR representative.
The same rate applies to loans of between £15,001 and £25,000, repaid over two to seven years.
However, if you want to borrow a much smaller amount, a personal loan can be a fairly expensive way of borrowing. If you borrow between £1,000 and £2,999 with Sainsbury’s, for example, you’re looking at a rate of 12.5% APR representative.
It may therefore be more cost effective to use a money transfer credit card. This allows you to shift money from your card to your current account and you can then spend this money however you wish.
The MBNA Platinum credit card, for example, offers 36 months’ interest-free on money transfers, subject to a 2.99% transfer fee (minimum fee of £3). The card has a representative rate of 18.9% APR (variable)* so be sure to pay off your balance before the 36 months are up.
*Representative Example: If you spend £1,200 at a purchase interest rate of 18.9% p.a. (variable) your representative rate will be 18.9% APR (variable).
Please note: any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.