Review of the week: Sainsbury’s Finance Loan

If you’ve overindulged on the Christmas shopping already, you may be thinking about how you are going to pay off your festive spending once the New Year kicks in.

A personal loan may be a viable option, especially if you’ve accumulated fairly large debts or have a big expenditure on the way. Unsecured loans offer a fixed rate meaning you know exactly how much you’ll repay each month and when your debt will be cleared, making them the preferred option over a credit card for many people.

This week we are looking at the personal loan offering from Sainsbury’s.

What’s the deal?

Available for loans between £7,500 and £15,000, Sainsbury’s Finance is offering a market-leading rate of 8.0%. 

You can apply online and, as long as the loan is arranged by 3.30pm, you will receive your funds the following day by way of a cheque.

There is also the option to delay repayments for the first three months.

Any catches?

The deal is only available to Nectar card holders and you must have used that card in Sainsbury’s within the last six months. Sainsbury’s states that it reserves the right to check your Nectar account to verify this information, proving once again that, when it comes to loans at least, loyalty does pay. 

However, just because you don’t currently have a Nectar card, it doesn’t mean you can’t get the deal from Sainsbury’s. You can apply online at and when your card arrives, nip down to your local Sainsbury’s and use it. Once that’s done, you’re free to apply for a loan.

The three-month payment break on this loan may seem to be a handy lifeline if you are consolidating your Christmas debt and are looking for an all important breather.

However, you must bear in mind that even though you are not required to make any payments you will still accrue interest on the loan during this period – you may therefore prefer to start your repayments from month one.



We are in a climate where many banks and building societies are only offering loans to existing customers. This makes the Sainsbury’s deal stand out – even if you have to have a Nectar card to qualify.

The minimum loan size is £7,500 but don’t borrow this amount for the sake of it: it’s important not to overstretch your borrowing requirements just for the sake of grabbing a good rate. Sainsbury’s is offering a typical rate of  8.8% on smaller loans of between £1,000 and £7,499, again for Nectar Card holders, and this is a rate that currently sits in our best buy tables.

Top Tip

As with all leading loan and credit card rates, you will need an impeccable credit score in order to obtain the rate of 8.0% from Sainsbury’s. It’s also worth noting that Sainsbury’s operates a ‘rate for risk’ pricing structure, which means that not all of those who qualify for its loan will be offered an annual rate of  8.0%.

At least 66% of successful applicants must be given this rate, but one third could be offered a higher rate of up to 13.0%.

Please note: Any rates or deals mentioned in this article were available at the time of writing. Products or companies underlined can be applied for directly.

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