Research from Moneyfacts.co.uk has revealed a fall in personal loan rates over the past two years. The average rate on a £5,000 loan over a three year period stands at 11.5% today compared with 12.1% in June 2012.
Those hoping to find a competitive loan over a medium-term have the pick of some of the lowest rates in the market for a long time. This time last year the top rate offered for a £5,000 loan over three years was 7.9%, with the best rate two years ago standing at 8.4%. Today the top rate is just 6.5%.
As with any form of credit, it is always wise to work out your finances and be sure you can meet the monthly payments prior to committing to a personal loan.
The APR quoted is representative of the interest rate offered to most applicants. Depending on your personal circumstances the APR you are offered may be higher. Please check all rates and terms before borrowing.
Hitachi Capital (UK) plc Hitachi Personal Loan
Penny says… "This highly competitive loan offers customers aged 25 and over a market-leading rate of 6.5% for borrowing over 24 to 60 months.
"The provider also accepts electronic signatures, enabling money to be paid within 48 hours."
Sainsbury's Bank Standard Nectar Cardholder Loan
Penny says… "Sitting in second place is this appealing rate from Sainsbury's Bank.
"This deal is only available to customers who own and have used a Nectarcard with the supermarket in the past six months."
Santander Online Personal Loan
Penny says… "Just outside the top three loans is the Santander Online Personal Loan offering a representative rate of 6.9%.
"This deal should suit borrowers who prefer to conduct their business online."
Clydesdale Bank Online Personal Loan
Penny says… "Giving the Santander deal a run for its money is this online loan from Clydesdale Bank.
"It is worth noting that this loan is available to new and existing customers and that age and minimum income restrictions will apply."
Tesco Bank Personal Loan
Penny says… "Just squeezing into the top five is this loan from Tesco Bank, available either online or by telephone.
"This deal should appeal to borrowers looking for a competitive medium-term loan rate from a familiar high street name." Information & Rates correct as at: 26//06/2013
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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 Any products featured may be withdrawn by their provider or changed at any time.
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