Loan Rates Reducing

31st January 2015

Tesco Bank has reduced the interest rate on small loans between £1,000 and £2,999 to 14.9%APR representative (reduced from 18.4%), offering customers a market-leading rate for small loans.

The new interest rate is effective immediately. Tesco Bank loans have a straightforward application process*, fixed monthly payments and no set-up charges. Customers can choose the repayment date and have the option to apply for a payment break at the start of the loan (subject to eligibility)**.

David McCreadie, Managing Director of Banking at Tesco Bank, said: "The introduction of a market-leading interest rate on small loans reinforces our commitment to providing customers with good value, simple and convenient products and services. This new rate gives customers the option to borrow small amounts for less."

Tesco Bank small loans are available over 1-3 years and online only. Customers should visit http://www.tescobank.com/loans for more information.

There may be even cheaper loans available and it is worthwhile checking some site such as Money Saving Expert at http://www.moneysavingexpert.com/loans/cheap-personal-loans

Offers on loan rates may change daily so always check it out before you finally decide.

You can also consider if a local credit union which is run for the benefit of members offers a good rate that also comes with other benefits such as free insurance cover. It can pay off to have credit union membership to save small amounts to be able to take advantage of the best rates at a later date. Many now buy cars via a credit union loan.