Banks battle it out as personal loan rates are slashed

In a bid to win consumers, lenders have been battling it out by slashing personal loan rates over the last few months.

Personal loan rates have fallen to a four-year low as Sainsburyís and Nationwide have been undercutting each other for several weeks.

Nationwide recently announced that they have reduced the rate on their personal loan products to 6.1% APR, the lowest the lender has ever offered. This is also the lowest rate available from any bank or building society in the UK as of yesterday (November 10th). 

Borrowers can take out loans of up to five years between £7,500 and £14,999, however, the 6.1% APR is only available to Nationwide current account holders.  Those who are not with Nationwide can still take out a loan at the 6.2% APR rate.
 
Graham Pilkington, Nationwide’s Director of Banking, said; “The personal loan market remains highly competitive. Nationwide continues to lead the way with the introduction of this market-leading headline rate of 6.1%, the lowest rate ever offered by the Society.î
 
“Family finances continue to be stretched and this great rate will appeal to customers looking to consolidate debt or spread the cost of home improvements or other purchases.”

Competitive rates

Prior to Nationwideís latest announcement, Sainsburyís also reduced their rates on personal loans to 6.2% at the end of last month. The personal loan rate was reduced from 6.4% on loans between £7,500 and £150,00 for five years. However, you must be a Nectar card member to be eligible for the loan.

This was released in response to offers from Nationwide and Alliance & Leicester, who announced that personal loan rates were to be reduced to 6.3% on loans of £7,500 and £14,999, for five years in the middle of October.

Compare personal loans with Money Expert.

Leave a Reply

Your email address will not be published. Required fields are marked *