Cheapest ever loan at 2.8%: Sainsbury's to slash rates on sums of between £7,500 and £20,000
Interest rates on personal loans have fallen below three per cent for the first time on record.
Sainsbury's Bank will tomorrow slash rates on loans of between £7,500 and £20,000 to 2.8 per cent from 3 per cent.
Monthly repayments will work out at £290 on £10,000.
Cuts: Sainsbury's Bank will tomorrow slash rates on loans of between £7,500 and £20,000
Borrowers must be willing to repay their loan in under three years and have a Nectar card to get the top rate.
If you want up to five years to clear the debt the rate is 2.9 per cent — or £179 a month.
The total cost of repaying £10,000 over three years is £10,440 and over five years £10,740.
The deal comes amid fears families are being increasingly lured into dangerous debt.
They are borrowing at the fastest pace for 11 years with more than £190billion racked up on credit cards, loans and overdrafts.
Official figures show the average debt per household — excluding mortgages — currently stands at £7,300.
Obtaining the headline loan deal from Sainsbury's depends on individual circumstances.
The bank has to accept at least 51 per cent of applicants on that rock bottom rate in order to advertise it.
Other providers are also offering rates around the three per cent mark, including Ikano, Cahoot, TSB, HSBC and Tesco Bank: here's the pick of the top deals and how to pick the right one for you.
l.eccles@dailymail.co.uk
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