Tesco Bank reduces personal loan rate

Today there have been a number of notable changes to personal loan rates, with both reductions and increases seen across a number of brands. This includes Clydesdale and Yorkshire Banks, both of which increased rates but still remain highly competitive in the market, while Tesco Bank has reduced the rate in the £25,001 to £35,000 tier for one to five years, making borrowing at this level much more affordable.

First up, Clydesdale Bank increased the rate on its personal loan of £5,000 for a term of 36 months to 3.5% APR, which despite the increase still remains one of the most competitive short-term personal loans available and holds second place in our Best Buy personal loan chart for this tier. This same loan and rate is also available from Yorkshire Bank.

Another major change in the personal loans market today came from Tesco Bank, which reduced the rate on its £25,001 to £35,000 tier loan to 6.7% APR for a term of one to five years. This loan allows overpayments without incurring an early repayment charge, which may prove useful to borrowers who find they're able to pay more than they initially thought.

The personal loans market remains highly competitive all round at the moment, with the best deal available coming from M&S Bank offering a rate of 2.8% APR on a loan of £7,500 for 36 months. Meanwhile, Admiral is currently topping many of our personal loan Best Buy charts, including the £5,000 for three years chart with a rate of 3.4% APR, as well as our £7,500 for five years chart and £10,000 for five years charts with a rate of 2.9% APR on offer for both.

It's important to remember that rates will always depend on your
credit rating and personal circumstances, so make sure your credit score is up to scratch if you want to stand the best possible chance of securing the advertised rates.

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