Sainsbury's Bank

Sainsbury’s Bank personal loans review May 2019

Sainsbury’s Bank offers unsecured personal loans of £1,000-£40,000 at a fixed interest rate, and with a Nectar card, you could secure an improved rate.

Founded as a Drury Lane grocer in 1869, Sainsbury’s launched its retail bank in 1997 as a joint venture with Bank of Scotland (it is now wholly owned by Sainsbury’s). Now, it offers unsecured personal loans of £40,000, over periods of 1-7 years. So whether you’re looking to refurbish the bathroom, buy a new set of wheels or take that once in a lifetime holiday, Sainsbury’s personal loans could help you spread the cost into manageable payments.

You don’t have to be an existing customer of Sainsbury’s Bank to apply for a personal loan, however, if you have a Nectar card (you can sign up for free) you could grab yourself a reduced interest rate. Sainsbury’s also offers a price match guarantee, if another provider offers you a “like for like” loan.

Fast, flexible loans from Post Office Money

  • Borrow from £1,000 to £25,000
  • Instant decision in most cases
  • Fixed rate and fixed monthly payments over the whole term
  • Your rate will depend on the amount, term and your personal circumstances.

Representative example: Borrow £15,001.00 over 3 years at a rate of 3.1% p.a. (fixed). Representative APR 3.1% and total payable £15,718.32 in monthly repayments of £436.62.

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How do Sainsbury’s loans hold up against the competition?

Comparison ordered by representative APR with affiliated products shown first. Rates updated 20 May 2019.

If you’ve been to the Sainsbury’s Bank site and had a quote on a loan, it’s a smart idea to shop around before you sign on the line. Use the table below to compare costs for the loan that you have in mind.

Name Product Total Payable Monthly Repayment Representative APR
Representative example: Borrow £10,000.00 over 3 years at a rate of 5.5% p.a. (fixed). Representative APR 5.5% and total payable £10,848.60 in monthly repayments of £301.35.
Representative example: Borrow £10,000.00 over 3 years at a rate of 3.4% p.a. (fixed). Representative APR 3.4% and total payable £10,524.24 in monthly repayments of £292.34.
Representative example: Borrow £15,001.00 over 3 years at a rate of 3.1% p.a. (fixed). Representative APR 3.1% and total payable £15,718.32 in monthly repayments of £436.62.
Representative example: Borrow £10,000.00 over 3 years at a rate of 3.3% p.a. (fixed). Representative APR 3.3% and total payable £10,509.12 in monthly repayments of £291.92.
Representative example: Borrow £15,001.00 over 3 years at a rate of 3.1% p.a. (fixed). Representative APR 3.1% and total payable £15,718.32 in monthly repayments of £436.62.
Representative example: Borrow £10,000.00 over 3 years at a rate of 3.9% p.a. (fixed). Representative APR 3.9% and total payable £10,601.64 in monthly repayments of £294.49.
Representative example: Borrow £10,000.00 over 3 years at a rate of 2.9% p.a. (fixed). Representative APR 2.9% and total payable £10,447.20 in monthly repayments of £290.20.

Compare up to 4 providers

Important information:
You should always refer to your loan agreement for exact repayment amounts as they may vary from our results.

warning icon Warning: late repayments can cause you serious money problems. See our debt help guides.

Key features of a Sainsbury’s personal loan

Sainsbury’s Bank offers unsecured personal loans, meaning they’re be based on creditworthiness, rather than using property, vehicles and other assets as collateral. The loans are available over a period of 1-7 years for loans between £1,000 and £40,000.

While Sainsbury’s rates are normally competitive, the 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.

  • Borrow from £1,000-£40,000.
  • Borrow over 1-7 years
  • Fixed monthly repayments. 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.
  • Improved rates for Nectar card holders.
  • Quick access to funds. If your application has been completed and accepted online, your loan should be transferred immediately.
  • Price match. Sainsbury’s will beat a ‘like for like’ loan APR from another provider.
  • Early repayments. Pay back your some or all of your loan early at any time.
  • Option to defer repayments for two months. Defer your repayments for the first two months so you can get your finances in shape before you start paying back. Bear in mind your loan will still accrue interest during this time, so it would cost more overall.

What is APR?

If you’re comparing any credit-based products, it won’t be long before you’ll come across the Annual Percentage Rate (APR). This figure 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.

All lenders must calculate the APR of their products in the same way and must tell you the APR before you sign an agreement, so for consumers it can be a handy tool for comparison, alongside other features such as the total amount payable.

Bear in mind, however, that lenders are only obliged to award this rate to 51% of those who take out the loan – 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 personal loan?

You should only apply for a Sainsbury’s personal loan if you’re certain you can meet the repayment terms, and you meet the following criteria:

  • Age. Aged between 18 and 76 years old.
  • Address. You’ll need to provide 3 years of address details.
  • Income. You must have a regular income. Benefits are not considered an acceptable source of income.
  • Employment. You must have been employed by your current employer for over 3 months.
  • Credit history. You must not have been declared bankrupt in the last 6 years.

How it works

  1. Decide how much to borrow. Use Sainsbury’s online calculator to work out the size of personal loan you want.
  2. Fill in the application form. You have the option to complete your application online, or it can be posted to you.
  3. Await your decision. Sainsbury’s will assess your application by running affordability and credit checks.
  4. Receive your loan. Apply online and once accepted your loan should be transferred immediately. If your application was completed via post then it can take 1-5 days for payments to go through.

Frequently asked questions

Post Office Money® Personal Loan
Post Office Money® Personal Loan
APRs from 3%
(on loans between £15,001 and £25,000 over 12-84 months).

Representative example: Borrow £15,001.00 over 3 years at a rate of 3.1% p.a. (fixed). Representative APR 3.1% and total payable £15,718.32 in monthly repayments of £436.62.

M&S Bank Personal Loan
M&S Bank Personal Loan
APRs from 2.8%
(on loans between £7,500 and £20,000 over 12-36 months).

Representative example: Borrow £10,000.00 over 3 years at a rate of 2.9% p.a. (fixed). Representative APR 2.9% and total payable £10,447.20 in monthly repayments of £290.20.

AA Non-Member Loan
AA Non-Member Loan
APRs from 3%
(on loans between £15,001 and £25,000 over 12-84 months).

Representative example: Borrow £15,001.00 over 3 years at a rate of 3.1% p.a. (fixed). Representative APR 3.1% and total payable £15,718.32 in monthly repayments of £436.62.

Shawbrook Bank Personal Loan
Shawbrook Bank Personal Loan
Personalised rates with representative APR 12.9%

Representative example: Borrow £10,000 over 5 years with representative APR 12.9% (fixed) and total payable £13,405.80 in monthly repayments of £223.43.

*Disclaimer: The offers compared on this page are chosen from a range of products whose details Finder has access to track; they don't represent all the products available in the market. Unless indicated otherwise, products are displayed in no particular order or ranking. The terms "best", "top", "cheap" (and variations) are not product ratings and are subject to our terms of use. You should consider seeking independent financial advice and consider your personal financial circumstances when comparing products.

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