New price war for large personal loans
Tesco Bank has slashed the cost of its personal loans for those looking to borrow between £15,001 and £25,000.
Clubcard holders can now get a rate of 3.4% (a huge drop down from 4.8%) when borrowing over up to eight years, while non-Clubcard holders will get a rate of 3.6% (down from 5.9%).
Those looking to spread their borrowing between eight and 10 years can get a rate of 5.4% if they're Clubcard holders (down from 6.8%), while non-Clubcard holders will get a rate of 5.6% (down from 7.9%).
New price war on large loans
In recent years we've seen lenders locked into a race to the bottom when it comes to medium-sized loans between £7,500 and £15,000.
The market-leading deals in this sectors are currently at record lows of 3.3%.
But now it seems the competition has shifted, with providers vying for borrowers looking for larger loans of more than £15,000.
Sainsbury's Bank, Cahoot and First Direct have all reduced rates to 3.4% on larger loans in the last couple of months. In fact, Sainsbury's Bank has cut rates on loans of £20,000 to £25,000 to just 3.3% for Nectar cardholders, so long as you pay it back over two to three years. If you need longer, up to seven years, the rate is still a market-leading 3.4%.
How Tesco compares
Here's how Tesco compares on loans of £17,500 over five years.
Provider | APR | Monthly repayment | Total amount repayable |
3.4% | £317.17 | £19,030.20 | |
3.4% | £317.17 | £19,030.20 | |
First Direct Personal Loan* | 3.4% | £317.47 | £19,048.21 |
3.4% | £317.89 | £19,073.40 | |
3.6% | £318.68 | £19,120.80 | |
3.6% | £318.97 | £19,138.20 | |
3.6% | £318.99 | £19,139.40 |
*Available to 1st Account holders only
What you need to know before you apply
Whether you're on the hunt for a small, medium or large loan bear in mind that you might not get the headline rate you apply for.
That's because lenders only have to offer their top rate to 51% of successful applicants.
So if you have never borrowed money before or you've been late with repayments you might be offered a worse deal.