20 April 2006
Alliance & Leicester (A&L) has announced that it is to cut the interest rate on its unsecured personal loan product.
The firm is to take 0.2% off its rate, giving a new competitive rate of 5.9%.
Consumers looking for a loan can benefit from the rate by borrowing between £5,000 and £20,000.
There are several ways to take advantage of the personal loan deal, with A&L providing access to the deal online, as well as over the phone and in branches.
Commenting on the new rate, Claire Alvey, personal loans manager for A&L, said: "By reducing our personal loan rate we are making borrowing even more affordable, and could provide people with the perfect opportunity to spring-clean their finances.
"Anyone with a loan from a big bank with an uncompetitive interest rate, or someone with debt on more expensive store cards or credit cards, could save themselves £820 or more in interest."
That calculation is based on a comparison with a £7,500 loan from Barclays, which charges a typical rate of 9.9% APR.
Consumers would end up paying a total of £9,475 over five years, compared to just £8,654 with A&L's new 5.9% APR, saving over £820.
Finding the cheapest loans in the UK is quick and easy with uSwitch.com's loans comparison service.
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