Sainsbury’s personal loans
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.
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.
Sainsbury’s loan calculator
Late repayments can cause you serious money problems. See our debt help guides.
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?
Sainsbury’s loan rates and fees
Sainsbury’s Loan (Nectar cardholders):2.9% p.a. fixed interest rate with no fee, on loans of £10,000 over 3 years. Apply to borrow up to £40,000.
Sainsbury’s Loan (non-Nectar cardholders):3.9% p.a. fixed interest rate with no fee, on loans of £10,000 over 3 years. Apply to borrow up to £25,000.
Overview of Sainsbury’s loans
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 want 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 these enhanced rates or 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 £40,000 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 £40,000.00|
|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|
How do Sainsbury’s personal loans work?
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:
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.
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.
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.
- 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 be self-employed or retired with a pension.
- 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).
Frequently asked questions