Santander has reduced the cost of borrowing for selected tiers of its personal loans by up to 0.3% APR, earning it an 'excellent' rating as a result.
A Personal Loan of £7,500 to £20,000 now has an APR of 4.4% over a term of one to five years after receiving the maximum reduction of 0.3%.
Meanwhile, 123 Customers Personal Loan and Select Customers Personal Loan now have a rate of 4.5% APR for loans of £5,000 to £7,499 over one to five years and a rate of 3.9% APR for loans of £7,500 to £20,000, after receiving cuts of 0.1% and 0.3% APR respectively.
Example monthly payments for a Personal Loan: £7,500 over five years = £139.32.
Example monthly payments for a 123 or Select Customers Personal Loan = £7,500 over five years - £137.69.
Applicants must be at least 21 years old and have an annual income of £5,000 per annum. To be eligible for the 123 Customers loan and Select Customers loan, borrowers must have a 123 Current Account or 123 Credit Card, or be a Select customer. Applications can be made by phone, online and in branch.
Borrowers should remember that rates are dependent on the size of the loan, the length of the term chosen and their credit history.
These loans have received some welcome rate cuts on selected tiers, which helps to enhance their competitiveness. 123 and Select customers in particular can benefit from newly improved rates, which will appeal to those who are looking a low-cost loan.
Moneyfacts rating: Excellent
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