Sainsbury and Tesco lower loan rates as Christmas approaches

Tuesday, November 8, 2005

Sainsbury's Bank has cut internet loan rates for the run up to Christmas seemingly in a bid to make themselves the lender of choice as people look for credit during the festive season.

Any internet applications for a loan of above £5,000 will get the cut rate of 6.1 per cent APR if taken out before the end of December.

"We are committed to offering consistently competitive rates," said Rachel Brereton, loans manager at Sainsbury's Bank.

"The new rate is perfect for anyone planning a holiday or looking to make a few special purchases for Christmas."

Customers can receive an instant decision online and will receive their cheque the next day, the bank says.

The move by Sainsbury's Bank comes hot on the heels of a loan rate cut by Tesco Personal Finance, announced yesterday.

Tesco's cut is on what it calls its "most popular" band of £7,500 to £25,000 and the new rate is 6.3 per cent APR, which unlike the Sainsbury's offer, is available for both online and offline loans.
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