UK Banks Slash Personal Loan Rates

The month of January was marked by a fierce battle between UK personal loans providers for consumers' loyalty.

Most banks decreased interest rates in an attempt to attract new borrowers.

As such, Nationwide introduced its best buy deal for all consumers, which was available at 7.3%.

A couple of days later, it was undercut by Spanish-based lender Santander, which launched a 7.2% deal for all consumers who take out loans of £7,500 and £14,950 through comparison website.

The latest bank to enter the battle was Sainsbury's Finance, which also slashed interest rate on personal loans to 7.2%. The offer, however, is only available to holders of Nectar cards taking out loans of £7,500 and £14,999.

Commenting on the latest changes, Ms. Tara Evans from This Is Money said that "the rate of 7.2% is the lowest currently available on the market. However, there are barriers to cross before you can be sure of sealing the appetisingly low rate."

You can search and compare personal loan rates on online comparison websites.