Menu

Cost Of Unsecured Loans At Six Year Low – Sainsbury’s Bank Announces 4.9% Apr Flash Sale On Loans Between £7.5k And £15,000 – 8 Days Remaining

11 November 2013

Sainsbury’s Bank has announced a flash loan sale, reducing the rate on its Standard Personal Loans from 5.1% to 4.9% APR(1) Representative. During the sale, if the repayment term is between one to three years, the rate becomes 4.8% APR Representative. The sale ends at 3pm on the 18th November 2013 and is available to all customers with a Nectar card(1).

Analysis of market data(2), undertaken by Sainsbury’s Bank reveals that the cost of borrowing is at its lowest level in six years.

In 2007, the average best buy rate for an unsecured loan was 6.1%, rising as a result of unprecedented financial market conditions to a peak of 8.0% in April 2009(2). Since then, the average best buy rate for loans has steadily fallen, with the 2010 average of 7.7%, 2011 average of 6.7%, and 2012 average of 5.8%(2) .

Currently, the best rate available on the market for an unsecured loan is 4.8%, 3.2 percentage points lower than the 8% best buy rate that was available in April 2009, when prices peaked. A borrower taking a £10,000 best buy loan with a three year repayment period today would repay a total of £10,740.60. This is £494.28 less than their total borrowing costs would have been, had they taken their loan in 2009, when they would have paid a total repayment of £11,234.88(2).

Simon Ranson, Head of Banking, Sainsbury’s Bank said: “In the current market, consumers have the opportunity to borrow at historic low rates. Someone taking a loan nowadays, be it for debt consolidation, home improvements or to pay for the purchase of a car for example, will pay several hundred pounds less than if they’d taken the loan a couple of years ago. People need to shop around before taking out a loan and make sure that they find a competitive rate as it could save them hundreds of pounds in lower repayments.”

Sainsbury’s Bank also offers a Price Promise Guarantee(4) whereby if any customer successfully applies for its Standard Personal Loan, but then secures a better rate elsewhere with another provider, the supermarket bank will beat it. This is subject to the customer qualifying for the offer and they must not have already accepted a Sainsbury’s Standard Loan offer by signing and returning the Sainsbury’s Loan agreement.

Sainsbury’s Bank offers loans between £1,000 and £25,000 to meet a wide range of needs. In addition to competitive rates, customers taking out a Sainsbury’s Bank loan also benefit from:

For further information on Sainsbury’s Bank Loans log onto www.sainsburysbank.co.uk or pick up a leaflet in Sainsbury’s.

– Ends –

For further information, please contact:

Tom Wilson, Citigate Dewe Rogerson 0207 282 2842

Lorna Gilmour, Sainsbury’s Bank 0131 338 2863

Notes to editors:

(1) Between 8th and 18th November, Nectar card customers who apply to Sainsbury’s Bank for a Standard personal loan can receive a rate of 4.9% APR Representative – outside this sale period, Sainsbury’s Bank offers a best-buy rate of 5.1% APR Representative for unsecured loans between £7,500 and £15,000, taken over five years.

(2) Analysis of best buy loan rates for a £10,000 loan, repaid over three years – source Moneysupermaket February 2013 + Moneyfacts March-August 2013

(3) Personal Loan Provider of the Year’ – Consumer Moneyfacts

(4) The offer is only available to those customers who successfully apply for a Sainsbury’s Standard Loan. This is subject to them qualifying for the offer. Claims under the offer must be received within 28 days after the Sainsbury’s Loan has been approved. Claims cannot be accepted if the customer has already fully accepted the Sainsbury’s Standard Loan offer by signing and returning the Sainsbury’s Loan agreement. A “lower rate” means a lower Annual Percentage Rate (APR) of an alternative unsecured, fixed rate loan from a lender, compared on a “like for like” basis. Multiple credit searches may make obtaining future credit more difficult.

 

Sainsbury’s Bank:

To view our latest press releases and product information, please visit the Sainsbury’s Bank online media centre at www.sainsburysbank.co.uk/media

Sainsbury’s was the first major British supermarket to open a bank, commencing trading in February 1997. Benefiting from a fantastic, trusted brand that enables us to combine the shopping experience with personal finance, Sainsbury’s Bank provides a range of quality products including insurances, credit cards, savings and loans. Our proposition is to make shopping more rewarding by offering customers great products at fair prices, while consistently rewarding shoppers for their loyalty and being easy to do business with at all times. Our products consistently top best buy tables and regularly win awards for quality, price and service.

The Bank has been awarded ‘Personal Loan Provider of the Year’ – Consumer Moneyfacts, ‘Best Loan Provider’ – Money Supermarket Supers and ‘Best Credit Card for Rewards’ – Moneynet and ‘Best Card Provider’ – Moneyfacts.

Sainsbury’s Bank has its own banking licence, is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (register no. 184514), except for Credit Cards and Loans where it is licensed by the Office of Fair Trading (OFT) license no. 421897. The Bank has an independent membership to the Financial Services Compensation Scheme.

 

Notes to editors/webmasters

If using this article on a website, please link to www.sainsburysbank.com using the following hyperlink text at the bottom of the article:

<a href=”http://www.sainsburysbank.co.uk/borrowing/bor_loans_skip.shtml“> Sainsbury’s Loans</a>