Hitachi slashes rate for smaller personal loans

Hitachi has lowered the interest rate to 6.2% on loans of between £5,000 and £7,999.

Taking out £5,000, for example, would cost you £5,803.80 in total if paid back over five years with a monthly payment of £96.73.

Best-buy personal loan

The personal loan market has been extremely competitive this year, but most of the action has been focused on larger loans of between £7,500 and £15,000.

Hitachi's new rate is only beaten by the peer-to-peer lender Zopa, which is offering a rate of 5.7%.

Peer-to-peer lenders work in a slightly different way by cutting out the middleman – the bank – to make rates cheaper for borrowers and lenders.

Compare peer-to-peer saving

The next best rate is 6.4% and is offered by Clydesdale Bank, Yorkshire Bank, Sainsbury's Bank and Tesco Bank as you can see from the table below.


Representative APR

Total amount repayable




Hitachi Personal Finance Loan



Sainsbury's Bank Standard Loan



Tesco Bank Personal Loan



Clydesdale Bank Online Personal Loan



Yorkshire Bank Online Personal Loan



Interest rates

When applying for a personal loan the headline rate may not be the one you're offered. This is because lenders are only required to offer this rate to 51% of successful applicants. It's all dependent on your own financial situation.

One way to suss out the likelihood of getting accepted for a loan is to check your credit score before applying.

Compare loans – rates from 5%