Sainsbury's Bank has increased the rate charged on loans of £15,001 to £25,000 by up to 1.3% APR, but despite this, it has retained its competitive edge, earning the top Moneyfacts rating in the process.
A Standard Nectar Cardholder Loan of £15,001 to £19,999 over a term of two to three years now has a competitive APR of 4.8% (+1.3% APR), while a loan of the same amount over a longer term of 37 months to seven years has an APR of 4.9% after the same 1.3% APR increase.
Meanwhile, a loan of £20,000 to £25,000 over a term of two to three years has a new APR of 4.8% (+0.9% APR), while the same loan size over a term of 37 months to seven years charges a rate of 4.9% APR (+0.9% APR).
Example monthly repayments: £20,000 over five years = £375.53.
This loan comes with a Price Promise Guarantee, which promises to beat any 'like for like' deal, giving borrowers some added security about the competitiveness of the loan.
Borrowers must be Nectar cardholders and at least 18 years old with an annual income of at least £7,500 to apply. Applications can be made online or by phone. Borrowers should remember that rates are dependent on the size of the loan and the length of the term chosen, as well as their credit history.
Loans are also available at slightly higher rates to non-Nectar cardholders.
Higher tier loans of £15,001 to £25,000 may have received rate increases, but they remain highly competitive offerings in the market. Nectar cardholders looking to consolidate their debts are therefore unlikely to be deterred by these latest changes, especially as the loan still comes with a Price Promise Guarantee. This is an outstanding product that fully deserves the highest Moneyfacts rating.
Moneyfacts rating: Outstanding
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