Some loan rates are at their most affordable level in four years, research by Moneyfacts.co.uk has uncovered.
Last year, many lenders got involved in cutting their loan rates, with Tesco Bank, Sainsbury's Finance and M&S Money all slashing the cost of their loans.
That trend has carried over into 2012, with seven providers having already implemented cuts in their loan rates.
Just five days into the New Year and Tesco Bank, The Co-operative Bank, M&S Money, AA, Smile, Santander and Barclays Bank have all cut the price of their loans.
M&S Money reduced its personal loan rate by some 0.4% to 6% APR on £10,000 over five years.
The rate of 6.00% which is currently being offered is the lowest recorded for the term for four years, figures show.
Previously the lowest rates for this borrowing amount and term were: 8.4% one year ago, 7.8% two years ago, 6.8% three years ago and 5.8% four years ago.
It is expected that customers will continue to benefit as rates are likely to fall yet further, according to Rachel Springall, spokesperson for Moneyfacts.co.uk.
"Those looking for a personal loan to consolidate their debts will benefit from this low rate," she said.
"Customers must shop around for the best deal as loan rates are continuing to fall in this competitive market."
Find the best loan for you - compare loans
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.