Sainsbury’s unveils new personal loan package –
Sainsbury’s Finance has unveiled a deal this week on low interest personal laws – providing you own the companies nectar loyalty card. Rates for customers who already own the card and apply online are 7.9% APR for loans ranging between £5,000 and £15,000.
The supermarket giant previously offered loans at a rate of 8.1% which it still offers to customers who do not have a nectar card. However, it seems like this will now be a unnecessary rate for most people as there is no ‘limit’ in terms of applying for the nectar card scheme. Many customers have applied for the card and then applied for the loan, dramatically increasing interest in the stores loyalty system.
The nectar card can also save you money outside of Sainsburys, especially if you have any home utilities supplied by companies like EDF Energy and TalkTalk who use the nectar scheme in their billing system.
Head of loans at Sainsbury’s Finance, Steven Baillie commented on the logic behind the decision: “We’re constantly looking for ways to reward our customers and with this offer, we’re giving the Sainsbury’s shopper a preferential rate, enabling even more people to enjoy the benefit of banking, as well as shopping with us.”
Sainsbury’s finance was also quick to point out that it is currently one of only four financial service providers offering a typical APR of less than 8% for similar sized loans. How long this will remain the case is unknown.
Offering preferential rates for customer loyalty is quite a common theme with many institutions offering better deals for long term and financially active customers. Optimists are predicting that the move from Sainsbury’s, combined with larger reaching effects such as improvements in mortgage rates, are signs of a slowly recovering economy.