Late repayments can cause you serious money problems. See our debt help guides.
Our calculator lets you pick how much you want to borrow, and how long you’d like to borrow it for, to estimate how much you would pay back each month and overall. We base our calculations on Sainsbury’s representative APR, but it’s important to note that credit is subject to status and your circumstances may affect the rate you’re offered.
With Sainsbury’s loans you can request a two-month repayment holiday at the start of the loan. This can buy you time to get back on your feet financially, but it pushes up the monthly and overall cost of borrowing. We’ve based our calculations below on the assumption that you won’t use the repayment holiday. We also assume that you don’t repay the loan early.
Applying was an easy process with no problems. Sainsbury’s has low interest rates and it’s easy to overpay.”
If you’re considering a Sainsbury’s loan, the good news is that you don’t have to be an existing customer of Sainsbury’s Bank to apply. You’ll need to have a Nectar card however – it’s free to get yourself one (just ask at the checkout) and it’ll help you bag a reduced interest rate.
With its benefits for Nectar cardholders, Sainsbury’s Bank has become a popular choice for fixed-rate personal loans and credit cards. However with the price wars extending beyond supermarket shelves into financial products such as these, there are savings to be had by shopping around for the best deal.
Sainsbury’s previously offered a price match guarantee if another lender formally offered you a loan at a better rate (it’s not enough to simply show an advert you’ve seen with a better APR). There’s no longer any mention of this on the site, however.
The upper limit of £25,000 is higher than the more standard £25,000 for unsecured loans. This can make a Sainsbury’s loan an appealing bet for heftier expenditures – perhaps a loft conversion or an extension – but you’ll need decent credit and, more importantly, you’ll need to be able to comfortably be able to afford the repayments, to get your application across the line.
Like most lenders, Sainsbury’s now offers a soft-search tool so you can get a good idea whether or not you’ll be approved before you apply, without hurting your credit score.
|Loan type||Unsecured Personal Loan|
|Loan amounts||£1,000.00 to £25,000.00|
|Loan terms||1 Year to 7 Years|
|Loan rate type||Fixed|
|Same day funding available|
|Instant decisions in most cases|
|Soft-search facility available|
|Overpay without penalty|
|Concurrent loans allowed|
|Topping-up pays off existing loan and initiates a new loan|
|Repayment methods||Direct Debit|
Sainsbury’s Bank offers unsecured personal loans, meaning they’re be based on creditworthiness, rather than using property, vehicles and other assets as collateral. While Sainsbury’s rates are definitely competitive, the advertised representative APR may not be the rate you’ll receive: Sainsbury’s will offer you a rate based on assessment of your personal financial circumstances.
Here’s the typical process for taking out and repaying a Sainsbury’s loan:
The Annual Percentage Rate (APR) is a figure that all lenders have to calculate in the same way, which is designed to provide an annual summary of the cost of a loan. It takes into account both interest and any mandatory charges to be paid (for example an arrangement fee) over the duration of a loan.
Sainsbury’s loans tend to have a very competitive APR – which is usually an indication that you’ll need a decent credit score to get approved, especially for larger loans.
The APR can provide a handy benchmark for comparison (alongside other factors like the monthly and overall cost), but there is a catch. Sainsbury’s is only obliged to award this rate to 51% of its borrowers – the other 49% could pay more. That’s why it’s often referred to as the “representative” APR. The rate you’re ultimately offered will depend on factors like the amount you apply for, the term of the loan, your credit rating and your income.
You should only apply for a Sainsbury’s Bank personal loan if you’re happy that you can meet the repayment schedule outlined. You must also:
Sainsbury's typically offers loans to applicants with high credit scores. It's important to note that your credit record is just one factor that Sainsbury's will consider, however if you don't have a high credit score, you're very unlikely to get approved for a Sainsbury's loan.
A "Good" or "Excellent" credit rating would require a score of 881 or higher, if you're referring to Experian's scale, 420 or higher if you're referring to Equifax's scale and 604 or higher if you're referring to TransUnion's scale.
Yes, Sainsbury's offers instant decisions online in most cases (occasionally more info may be required). Sainsbury's can also offer same-day funding of your loan.
Yes, Sainsbury's allows you to have more than one loan running at the same time. Each application for credit will be considered on its own merit. Alternatively, Sainsbury's also allows you to effectively "top up" your loan, by closing your current loan and starting a new, larger loan (you can call Sainsbury's on 0800 169 8503 for details). There's no penalty for repaying ahead of time, but bear in mind that any overpayments may be subject to up to two month's of interest beyond the date on which you overpay. Because of this, it may work out cheaper to run a second loan alongside the first, rather than consolidating the two.
Yes, you can make overpayments without incurring any penalty fee. However Sainsbury's can continue to charge interest for up to two months on any sums overpaid, so although making overpayments stands to save you money in interest, you may not save quite as much as you'd imagined.
If you’re considering applying for a £200,000 personal loan, check out this guide which explains how to compare lenders and find the best deal.
If you’re considering applying for a £150,000 personal loan, check out this guide which explains how to compare lenders and find the best deal.
If you’re considering applying for a £100,000 personal loan, check out this guide which explains how to compare lenders and find the best deal.
Are you aged over 50 and looking for an easy access account for your savings? Our guide examines how you can choose the best option.
With a generous rewards points scheme and 0% balance transfer period, the Sainsbury’s Bank Nectar credit card is a well-rounded and low-cost reward card.
As the name suggests, this card’s main draw is a super-long 0% transfer period.
If you’re planning to save your money into a fixed rate bond, we take a look at how you can find the best 2 year option.
How to get the best 1 year fixed rate bond. Here’s what you need to know.
Cashback credit cards let you earn money back on every purchase you make, but which one has the best cashback offer, as well as the best rate?
Find out what the best bank account is for packaged accounts, basic accounts and cashback accounts.
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.