Use our calculator to see how much you'll pay back on a Sainsbury's Bank personal loan - and then see whether its competitors offer a better deal. Loan amounts between £1,000 and £40,000 starting from 6%.
Thinking about a Sainsbury's Bank loan? Existing customers can enjoy fixed monthly repayments, same-day decisions and a competitive APR. Keep in mind that the best rates are for existing customers and the loan terms are somewhat limited compared to other providers. It's also important to note that Sainsbury's Bank has announced the closure of its banking services, but hasn't stated when. Consider these factors and compare alternatives before deciding.
Pros
Competitive APR
Instant decisions
Same-day funding facility
Cons
Repayment holiday not permitted
Lowest rates for existing customers only
You'll likely need a good or excellent credit score
Representative example: Borrow £10,000.00 over 3 years at a rate of 6.0% p.a. (fixed). Representative APR 6.0% and total payable £10,925.64 in monthly repayments of £303.49.
Finder Award
Maximum loan
£40,000
Product fee
N/A
Early redemption fee
Yes
Sainsbury’s loan calculator
Table: sorted by representative APR, promoted deals first
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Please note: You should always refer to your loan agreement for exact repayment amounts as they may vary from our results.
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.
How do Sainsbury’s Bank loans compare against the competition?
Table: sorted by representative APR, promoted deals first
Please note: You should always refer to your loan agreement for exact repayment amounts as they may vary from our results.
Sainsbury's loan rates at a glance
The Sainsbury's Bank Non-Nectar Cardholder Loan charges 6.4%APR representative on loans between £7,500 and £15,000. Sainsbury's offers the loan with repayment terms between 1 and 5years, and applicants can apply to borrow from £1,000 to £25,000.
The Sainsbury's Bank Nectar Cardholder Loan charges 6.0%APR representative on loans between £7,500 and £15,000. Sainsbury's offers the loan with repayment terms between 1 and 7years, and applicants can apply to borrow from £1,000 to £40,000.
Quick overview of Sainsbury's Bank personal loans
Loan amounts
From £1,000 to £40,000
Loan terms
From 1 year to 7 years
Age eligibility
18 years and over
Application fee
No application fee
Repayment holiday
Repayment holiday not permitted
Key features
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 will, however, need to have a Nectar card. It’s completely free, just ask at the checkout for one and it’ll help you bag those reduced interest rates.
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 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.
How do Sainsbury’s personal loans work?
Sainsbury’s Bank offers unsecured personal loans, meaning they’re 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:
Apply to borrow – over – years. If you’re happy with the results of your eligibility check, you can proceed to the real application. Sainsbury’s will auto-fill fields with information you’ve already provided. You’ll be asked for your Nectar card number and you’ll need to decide whether you want to take advantage of the two-month repayment holiday at the start of the loan (if you can, it’s cheaper not to).
Get an instant decision (in most cases)… In a few, exceptional cases, Sainsbury’s Bank might request additional information.
…and access funds straightaway. Once your application has been approved, you can accept the loan offer online and the money should be transferred immediately. If you’s prefer to receive and sign the physical documents, Sainsbury’s Bank says it will transfer the money within 1-5 working days of receiving signed documents.
Pay a fixed sum each month for the duration of the loan. Because the interest rate is fixed, you’ll pay the same amount each month and you’ll know upfront how much the loan is going to cost overall.
Repay some or all of the loan early, if you wish to. Pay back your some or all of your loan early at any time. An early settlement fee equivalent to 58 days’ interest on your remaining balance may apply.
Use the eligibility checker to find out your chances of getting approved for the loan you have in mind (this will involve a “soft” credit search that doesn’t have any affect on your credit score).
Sainsbury’s will present you with your chances of approval and a repayment example. This is a useful indicator but not a guarantee of approval, and the numbers could change after a full credit search.
If your application is likely to be approved you can proceed to the actual application (which involves a “hard” credit search and a slight – usually short-lived – negative impact on your credit score).
What is APR?
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.
Though Sainsbury’s loans tend to have a very competitive APR, this is usually a sign 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.
Am I eligible for a Sainsbury’s loan?
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:
Be aged between 18 and 76.
Be a UK resident.
Be a Nectar card holder.
Hold a UK-based bank or building society account which allows direct debits. If you’re applying for a joint loan, the first named applicant must be named on this bank account.
Have a good credit record with no history of county court judgements or bankruptcy.
Have been employed by your current employer for over three months or retired with a pension. Unfortunately Sainsbury’s does not currently offer loans to self-employed applicants.
Have a regular income of at least £7,500 (before tax) annually. Acceptable sources of income include a pension or rental/investment income, but do not include most benefits and allowances (e.g. child benefit, housing benefit, tax credit, maintenance payments, income support or job seekers allowance).
Sainsbury’s Bank customer reviews
In our independent 2024 customer satisfaction survey, 94% of Sainsbury’s users said they’d recommend the brand to a friend. Customers highlighted the bank’s great customer service, competitive rates and easy application process. Here’s what some of those Sainsbury’s customers had to say:
“Sainsbury’s gave us a brilliant interest rate and it has been easy to get the loan and to pay it back each month.”
“Sainsbury’s have an easy to use system for applying and being approved for your loan. You get benefits through collecting Nectar points, and the process was seamless”
“They were extremely helpful and you can track your loan in the banking app”
Customer support
You can contact customer support on 0800 056 0565. Lines are open Monday to Friday 8am – 8pm and Saturday 8am – 4pm. If you’re struggling to pay, you can call 08085 405060. Lines are open Monday to Friday 8am – 7pm, and Saturday and Sunday 8am – 5pm.
What credit score do I need to get a Sainsbury's loan?
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 considers. 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, 531 or higher if you're referring to Equifax's scale and 604 or higher if you're referring to TransUnion's scale.
Do Sainsbury's loans give an instant decision?
Yes, Sainsbury's offers instant decisions online in most cases. (Occasionally, more information may be required.) Sainsbury's can also offer same-day funding of your loan.
Can I get a second Sainsbury's 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. There's no penalty for repaying ahead of time, but bear in mind that any overpayments may be subject to up to 2 months 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 2.
Can I make overpayments on a Sainsbury's loan?
Yes, you can make overpayments without incurring any penalty fee. However, Sainsbury's can continue to charge interest for up to 2 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.
Frequently asked questions
Not anymore, unfortunately. If you’d been approved for a better rate elsewhere, Sainsbury’s used to beat the APR by 0.1%. However, there were caveats to this promise, plus one or two hoops to jump through.
Firstly you needed to have been offered a loan (but not yet accepted the offer) by both Sainsbury’s and the other lender. Provided this was the case, you could mail a copy of the other lender’s loan offer/agreement to Sainsbury’s Bank, quoting your Sainsbury’s Bank loan agreement number. Sainsbury’s Bank would then confirm that both its own and the other lender’s offers were in your name.
Sainsbury’s Bank PO Box 4953 Worthing BN11 9YX
If you apply online you’ll usually get an instant decision. Provided your application is successful, you can then accept the formal loan offer online and Sainsbury’s Bank states that it will usually transfer the money to straightaway.
You normally won’t nee to sign anything and you won’t need to send documents. The all-seeing credit reference agencies allow lenders to bypass this process.
Founded as a Drury Lane grocer in 1869, Sainsbury’s launched its retail bank in 1997 as a joint venture with Bank of Scotland, but it’s now wholly owned by Sainsbury’s.
Sainsbury’s will actually give you a detailed explanation as to its reasoning if you write to:
Underwriters (CLS Appeals) Sainsbury’s Bank PO Box 4955 Worthing BN11 9ZA
…and you can also use that address if you want to appeal the decision.
You can always re-apply for a smaller loan, but first you may wish to check out your credit record to see if it could be deterring lenders.
Yes, there are two ways you can top up. Your first option is to top up your existing loan and repay over a longer term. Alternatively you can take out an additional loan to run alongside your current loan. The interest rate on your new loan may be different to your original loan.
Yes, you have 14 days to change your mind. Once the 14 days have passed you’ll be bound to the terms of your loan.
Sainsbury’s allow you to take a two-month repayment holiday at the start of your loan. In other words you won’t have to pay anything back for the first two months. Unusually, this doesn’t increase the loan term, but be aware that your loan will still be accruing interest during this period, so you’ll pay slightly more each month and a chunk more overall.
Personal loans scores
★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor
Finder scores, in blue, are based on our expert analysis. We also show reviews from users, where we've received more than 10, with a score in yellow. We gather more reviews from customers every year in Finder's customer satisfaction survey.
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
Chris Lilly is Head of publishing at finder.com. He's a specialist in personal finance, from day-to-day banking to investing to borrowing, and is passionate about helping UK consumers make informed decisions about their money. In his spare time Chris likes forcing his kids to exercise more.
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