Steven Baillie, head of loans at Sainsbury's, 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." Sainsbury's Bank has reduced its personal loan rate to 6.5% APR typical from 6.9% APR typical for loans of GBP7,000 or more.
According to MoneyExpert.com, the average rate charged on personal loans has nearly reached double figures as lenders respond to the global credit crunch. Customers taking out a Sainsbury's loan now can choose to make no repayments until around Easter, can receive an instant decision and have their check delivered to their door within 24 hours.