Sainsbury’s Reduces Loan Rates
Once again, Sainsbury’s Finance has reduced the interest rate charged on their personal loan products, as the battle for who can offer the best cheap loan deal continues amongst a number of lenders and loan companies.
The supermarket has lowered the rate on the most competitive unsecured loan amount of between £7,500 and £15,000 to just 6.1 per cent APR (Annualised Percentage Rate) for those borrowers with a good credit rating, although this loan rate could be higher for someone with a lower credit score.
The additional benefits of the new unsecured loan range have now also been improved for those borrowers who hold a Nectar reward card with the supermarket, as a person who applies for a shopper reward loan will receive a Sainsbury’s gift voucher worth £100 and double Nectar points on their purchases for a two year period.
Whilst this is clearly beneficial for someone who regularly shops at Sainsbury’s, it is also quite clever of the supermarket, as it will encourage people to shop with them on a more regular basis, thereby spending their gains and, in turn, increasing the profits for the company.
When the value of the gift card, coupled with the double Nectar points for 2 years is taken into account, this has the effect of reducing the cost of the loan by around £152 for someone who regularly spends £50 per week in the supermarket.
Steven Baillie of Sainsbury’s Finance said “We continually offer competitive rates for our customers and reward them for their custom, so the new rate is great for Sainsbury’s shoppers.”
“For those who spend around £50 or more in store, it’s worth considering our Shopper Reward Loan, when taking into account the Nectar points earned and our gift card, it can make a significant difference to the total loan repayment.”
