Sainsbury’s Personal Loans Review 2022

Sainsbury’s Bank offers competitive rates on personal loans – starting from 3.40% if you’re a Nectar cardholder borrowing between £7,500 and £25,000. Repayment terms are set between 12 months and seven years.

Representative Example

You could borrow £10,000 over 60 months with monthly repayments of £181.24. Total amount repayable will be £10,874.40. Representative 3.40% APR, annual interest rate (fixed) 3.40% p.a. Credit available subject to status.


  • Competitive representative APRs (fixed)
  • Payments made in as little as two hours, once accepted
  • Borrowing up to £40,000 (with Nectar card)
  • Apply for a Nectar card online or in-store for free


  • Cheapest APRs reserved for Nectar cardholders
  • Cheaper APRs available
  • Minimum income of £7,500
  • Late payment fees of £25

Representative APR
3.40% (fixed)
£1,000 to £25,000 (or £40,000 for Nectar members)
12 months to 7 years

Key features

  • Representative APR of 3.40% (fixed) on loans between £7,500 and £25,000
  • Representative APR of 3.50% (fixed) on equivalent loans for non-Nectar card holders
  • Loans ranging from £1,000 to £25,000 (up to £40,000 for Nectar members)
  • Repayment terms between 1 and 7 years

Will I be eligible?

To be eligible for a personal loan from Sainsbury’s Bank, you must be at least 18 years old, UK resident, and have a phone number. You will also need a gross annual income of at least £7,500.

Applying through an eligibility checker will reveal how likely you are to be accepted across a range of loan providers. And it will not impact your credit score.

What more should I know?

When taking out a personal loan, comparing a range of providers will ensure you’re getting the best deal for your needs before beginning an application.

If you apply for a Sainsbury’s Bank loan online, you can expect an instant decision. However, occasionally, the lender might need more information, in which case it will be in touch.

If you are accepted for a Sainsbury’s loan, the next step is to sign an online loan agreement. With this agreement in place, you can receive the money in as little as two hours — otherwise by the next working day.

The loan must be repaid in the agreed instalments by Direct Debit. After your first payment has been processed, you can choose a different day of the month for subsequent repayments to be taken.

You also have the option to make overpayments on your loan at no extra cost. Should you make an overpayment, Sainsbury’s will automatically deduct it from your balance and reduce the term of your loan.

Alternatively, you can overpay by a lump sum, and request the bank keeps your repayment term the same, meaning the monthly payments that follow will be reduced. To make use of this option, you will need to contact the bank directly before you make an overpayment.

If you’re worried you’ll miss a payment at any point, get touch with the lender. It may be able to reschedule or reduce it. Otherwise, Sainsbury’s charges a £25 late payment fee and your credit score could also be affected.

Is a Sainsbury’s Bank loan right for me?

If you need to borrow a lump sum for one-off expenses such as buying a car, making home improvements, or funding a wedding, Sainsbury’s Bank can offer some competitive interest rates.

If you borrow in the £7,500 to £25,000 range, you can expect to be offered the lowest APR of 3.40% (fixed). However, this is only representative, so the rate you are offered can vary depending on your credit score and personal circumstances.

If you are using a personal loan to consolidate debt, be sure it’s the most affordable solution before you apply.

What are my alternatives?

If you want to borrow a smaller amount of money over a shorter period of time, a credit card which offers 0% interest on purchases for a promotional period may present a better option.

Provided you pay off your balance in full before the promotional period expires, you won’t have to pay any interest. The length of the 0% period varies by provider and your personal circumstances.

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