19 December 2007
Sainsbury's bank has announced a cut in its personal loan rates of 0.4%, in a new limited offer.
The APR of some of its personal loans has been reduced to 6.5%, the bank said yesterday.
However, the offer is only applicable to loans of more than £7,000.
Commenting on the personal loans decision, Head of Loans at Sainsbury's Steven Baillie said: "We are committed to providing our customers with great products and are delighted to be able to offer this market leading rate while other loan rates may be rising; at a time when our customers are getting ready for Christmas and planning for 2008."
The bank's personal loans decision could also reflect a more favourable current financial climate for borrowers, with the Bank of England announcing an interest rate cut last week.
Having increased rates on five separate occasions over the past eighteen months, the Bank cut rates by 0.25% so that the base rate now stands at 5.5%.
In the mortgage sector, a majority of lenders have reduced their rates in line with the Bank's decision.
However, personal loan interest rates are generally higher than variable mortgage rates - standing at around 10% on average.
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