A simples guide

Sainsbury’s bank loans

Top up your trolley with a personal loan from Sainsbury’s where one can be arranged for anything between £1,000 and £40,000.

Whether you need the extra cash for renovations to your home or to make wedding plans a reality, what you spend the money on is entirely up to you, so here’s our guide to Sainsbury’s bank loans.


What loans to Sainsbury’s offer?

Sainsbury’s bank offers unsecured personal loans with a fixed rate of interest. Having a fixed rate means you can budget for your repayments each month knowing that they won’t change. You can borrow anything from £1,000 up to £40,000 and choose a repayment period from between one and seven years.

You should always check the details when you decide on a loan amount. You might find that certain amounts need to be paid back within a more specific timeframe e.g. a loan of £3,000 - £4,999 can be paid off between 1 and 5 years.

Unsecured loans mean that you don’t have to provide any security against the loan, it’s an agreement in good faith based on your credit history and eligibility. But just because you’ve not offered up any assets in case you default, doesn’t mean that the penalties are any less severe. So before you renew your passport and plan to run away to sunnier climes, make sure you’ve done your sums right, if you don’t you could end up in court with a County Court Judgement (CCJ) on your credit record.

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What interest rates will I get with a Sainsbury’s loan?

What interest rate you qualify for will depend on multiple factors. If you subscribe to Sainsbury’s Nectar reward scheme it could qualify you for preferential rates.

Although the annual interest rate is fixed, the amount you want to borrow will influence the interest rate that you are offered. You could find that the less you borrow, the higher the interest and you may be better off asking for a loan that’s slightly more than you originally wanted. For example, a 7.5% APR is applied to any loan from £3,000 to £4,999, so if you did need that extra bit of cash, then the interest won’t be any higher if you borrow slightly more. However, you’ll still obviously have to pay back more as you’ve borrowed more.**

More on interest rates with a Sainsbury’s loan?

Plus, you’ll need to take into consideration your own credit history. It’s usually people who have an excellent credit history that qualify for the really low rates. If you’re a bit unsure of what your credit report says about you, you should always check before making any credit or loan applications. Any rejections will be noted on your report and could work against you in the future.

So if in doubt, take the time to find out. The three credit reference agencies are Experian (the largest), Equifax and Call Compass. You can check your report for free at Call Compass and also with Experian and Equifax through their trial period offer (just remember to cancel the trial before you get charged). Call Compass offer 15 days credit checking for free and then charge £14.95 per month. Experian and Equifax however offer 30 days free access then there is a charge to continue. 

Am I eligible for a Sainsbury’s bank loan?          

To qualify for a loan from Sainsbury’s, you’ll need to meet this criteria:

- You’ll need to be aged between 18 and 80

- You’ll need to be less than 83 when the loan is repaid

- You’ll need a UK bank or building society account with a Direct Debit facility

- You should have a permanent address in the UK

- Your income will need to be more than £7,500

- You should not have any CCJs (County Court Judgements) or have been declared bankrupt

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What else should I know?

There are no arrangement fees for a Sainsbury’s loan, so that should save you a bit of money. But take note of any fees you might be charged if you do miss a payment – as well as being charged for defaulting, you might also be charged for any letters and phone calls chasing you for payment.

How do I know if this is the loan for me?

That’s why we’re here. We’re one of the UK’s largest comparison sites so you can be confident that we’ll bring to the table everything that we can find so that you can make a choice that’s right for you. Just start comparing the market to find out what loan you could get so that you can start planning your future – who said you had to live well for less? 

** Data in this article was correct from sources as at April 2016.