Sainburys Bank Loan
The Sainburys Bank Loan is best for smaller borrowers, or indeed folks with minor debt hiccups. The low interest rate and payment holiday will be attractive, and offers the borrower a financial "breather". Watch out for expensive extras (the insurance policy) and be sure to apply online for the best rates.
Sainburys Bank Loan examples (correct at publication date, uninsured):
|£3000 across 2 years
|£5000 across 5 years
|£10000 across 7 years
We'll begin with the rates on the Sainburys Bank loan, because they're actually the least important part of the deal, despite being in the 6.9% to 7.9% range; which is thoroughly acceptable. You can borrow between £1000 and £25000; again a standard fair deal.
The important thing about a Sainburys Bank loan is the quirks that will affect the deal. For starters, don't call up- apply online. Although you get immediate approval over the phone, telephone applications attract a higher rate of interest. Oddly, nowhere on the website do Sainburys explain whether you can apply in-store, or indeed what rates that would attract. Hmmm…
Now to the underrated payment holiday. Sainburys offer a full three month payment holiday before your first instalment. If you've ever been had a loan before, you'll understand why this is a benefit. Why on earth would you borrow money, only to pay it back 30 days later? You might as well tighten your belt for 30 days and take the loan out a month later! The payment holiday is all about avoiding that feeling, so you can enjoy your purchase for a while.
The Sainburys Bank Loan is not geared up for the borrowing of large amounts f money. Your maximum settlement period is five years, and there's a redemption penalty of two months; so if you're consolidating £10,000 of debt, or buying a sports car, this is definitely not the right deal for you (consider a remortgage, or a longer-term deal)
There is one more essential comment about the Sainburys Bank Loan: the payment protection policy. If you require such a policy, be careful. The Sainburys policy is not well discussed on the site, and the charges were steeper than that offered by other lenders. If you are borrowing a large sum, or are borrowing over more than two years, or do not have a supportive (and rich!) family, you should consider these policies, and the Sainburys offering isn't the best.