New price war for large personal loans

A number of lenders have slashed the cost of larger personal loans. Here's who's cheapest.

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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

Sainsbury's Bank Personal Loan

3.4%

£317.17

£19,030.20

Tesco Bank Personal Loan for Clubcard holders

3.4%

£317.17

£19,030.20

First Direct Personal Loan*

3.4%

£317.47

£19,048.21

Cahoot Low Rate Personal Loan

3.4%

£317.89

£19,073.40

Tesco Bank Personal Loan

3.6%

£318.68

£19,120.80

Zopa A* Personal Loan

3.6%

£318.97

£19,138.20

Santander Personal Loan

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.

Compare personal loan rates

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