Nationwide announces lowest ever personal loan rate

Nationwide has announced its lowest ever rate for a personal loan, with effect from today.

The building society has reduced its personal loan rate to 6.1% APR for loans between £7,500 and £15,000, or 6.2% for non-FlexAccount holders.

It shows strong competition in the market for loans, with Sainsbury's Finance currently offering 6.2% on loans between £7,500 and £15,000, the same threshold as Nationwide, and HSBC offering 6.4% on loans between £7,000 and £15,000.

Nationwide and Sainsbury's both become less competitive, however, when dealing with larger or smaller loan sums. A Nationwide loan between £15,000 and £20,000 comes at a rate of 8.4%, while a Sainsbury's loan between £15,000 and £25,000 comes at a rate of 8.1%.

For smaller sums, competitive rates are averaging close to 7%, with Alliance and Leicester and Santander both offering loans from £1,000 upwards at 6.9% and 7.3% respectively.

Banks' confidence in sustained lower rates has been upheld by the Bank of England's decision to keep interest rates unchanged once again in spite of strong inflationary pressures. Despite the lack of effective monetary policy control over inflation, the lower central rates are showing signs of benefits to consumers.

Could you benefit from a personal loan, at a much lower rate than the hefty credit card charges? Check our personal loan comparison tables today, where our specialised loan calculator will help you find the best deal for you.

Nate Sawyer