Sainsbury’s Finance cuts personal loans rate

Sainsbury’s Finance have cut their rate for online personal loans to 8.1% for loans between £7,000 and £25,000.

According to Sainsbury’s Finance this makes it one of the most competitive personal loan rates.

January is a particularly busy month for people taking out personal loans. A high number of these are for debt consolidation purposes.

Sainsbury’s estimate that as many as 250,000 personal loans for debt consolidation could be taken out by the end of March 2009.

Head of Loans at Sainsbury’s, Steven Baillie said ‘Debt consolidation is always a good idea if you have multiple sources of debt, maybe a store card and credit card or a historical loan. Paying a number of individual rates of interest which could be as high as 30% or more on some store cards for example is not the best way to approach your debt.’

He went on to say ‘consolidating all of your non-secured debt through one of our loans could save you hundreds or thousands of pounds in interest repayments.’

Sainsbury’s Bank is a 50:50 joint venture with Sainsbury’s and Lloyd’s Banking Group.