Nationwide has lowered its representative personal loan rate to just 4.9% for current account customers on loans between £7,500 and £14,999.
The society's lowest ever personal loan rate undercuts its nearest competitors, Barclays, Tesco, and Sainsbury’s, which are all currently offering 5.1%.
The Nationwide’s affiliate, the Derbyshire Building Society, is currently offering a rate of 5.0%.
On a £10,000 unsecured loan taken out over four years, the monthly repayment would be £225.11, the Nationwide said.
Compared to Lloyds, which has one of the most expensive rates on the market, this represents a hefty saving of £532 over the four-year repayment period.
Rewarding Current Account Holders
The Nationwide has developed a trend of rewarding its current account customers with strong products over recent years.
The Flexclusive ISA, which launched at 4.25% last year, was a market-leading effort, while its new loan rate is a record low.
Its FlexDirect current account, launched last year, offers credit interest of 5% on balances of up to £2,500 (read more).
The society is one of two major institutions, along with Barclays, to have expanded its lending since the Government’s Funding for Lending Scheme began (read more).
John Crossley, Nationwide’s head of credit cards and personal loans, said: "The Nationwide personal loan is now the most competitive rate compared to other high street providers," said John Crossley, the society’s head of personal loans.
"With new car registrations coming out on 1 September, this is a popular time of year for securing finance to buy a new car.
"Researching your finance options could save you money and a Nationwide personal loan is worth considering," he added.
Keith McDonald
Which4U Editor
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