The 3.9% rate will apply to loans between pounds 7,000 and pounds 15,000, with repayments spread over one to five years. The rate is even lower than the 4.29%
Sylvia Waycot, editor at data provider Moneyfacts, confirmed that the deal "is the lowest rate ever recorded on Moneyfacts". It smashes the previous lowest-rate personal loans, which have charged around 5% interest.
For a five-year
So what's the catch?
Many applicants for "best-buy" loans are rebuffed because they don't meet the bank's credit-scoring criteria. But under credit rules, an advertised interest rate must be given to at least 51% of applicants accepted for loans.
According to Moneyfacts, applicants for loans whose credit score is rated as "fair" rather than "good" are offered deals at far worse rates. It says Everyday Loans offers finance to those on a "fair" credit score at 37.1% interest.
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