Sainsbury’s Bank now provides a range of financial services, including loans, credit cards, insurance and most recently mortgages.
Most people think it was Tesco’s but actually Sainsbury’s Bank was the UK’s first supermarket bank. It started in 1997 and has provided thousands of financial products to people ever since.
Sainsbury’s Bank offers loans, mortgages, credit cards, savings accounts, insurance products including home insurance amongst a range of other financial products.
Firstly, let’s see the eligibility for a Sainsbury’s Bank loan.
Am I eligible for a Sainsbury’s Bank loan?
Loan applicants must satisfy this following criteria:
- Aged between 18 and 76
- Must be a UK resident
- Nectar card holder for at least six months
- You must have a UK-based bank account (building society accounts are obviously also fine) which allows direct debits. (FYI nearly all accounts are capable of direct debits these days)
- You need to have been employed by your current job for at least 3 months, or have a pension
- Have a regular annual income of at least £7,500 (that’s a minimum of £625 per month)
The Best Alternative to a Sainburys Personal Loan
Try the Post Office. Even if you meet all the eligibility criteria with Sainburys and hold a nectar card the requirements can seem quite strict.
The Post Office isn’t a supermarket, they are one of our most trusted institutions with over 300 years of service offering a range of financial products and are now breaking into the loans market by offering very very competitive rates with extremely flexible terms.
What loans can I get from Sainsbury’s Bank?
Sainsbury’s Bank provide fixed-rate, unsecured personal loans all with the following benefits:
- Instant decisions are typical in most cases, when you apply online
- You are able to repay the loan, in full, at any point. However like alot of lenders you will be charged 2 months interest as a repayment penalty. This is fairly commonplace amongst lenders.
- You get to set the payment dates and these can be moved in the future to suit you aswell.
- You are able to make over payments on the loan to pay it off faster!
- Sainsburys have a mobile banking app so you can keep track of everything in one place
- They are safe given that they are regulated by the Financial Conduct Authority (FCA)
Frequently asked questions about Sainsbury’s Bank loans
What interest rate will I get with a Sainsbury’s Bank loan?
Sainsbury’s loans have a fixed interest rate and what this means is, the rate at which you pay back the loan won’t change over the term of the loan. Fixed means fixed!
Fixed rate loans make it easier to budget the loan repayments as the amount being repaid stays exactly the same throughout the life of the loan. It also means you are cushioned from any Bank of England interest rate rises.
If, for example, you wanted to make an overpayment one month this is ofcourse fine and will help to pay off the loan faster. But the next month if you didn’t want to make any overpayments you would simply go back to repaying the agreed ‘normal’ fixed amount.
The interest rate is shown as the ‘APR’ (Annual Percentage Rate), most people are familiar with this but if you aren’t, check out this article endorsed by the UK government explaining APR.
Loan providers only need to offer this rate to 51% of applications to be able to advertise it. So whilst the APR is a good benchmark for comparing loans just be mindful that actually the rate you’re given, may be higher or lower than the advertised rate.
It depends on the loan you want to take out and of course your personal financial situation.
What determines my APR?
It’s not just one thing, it’s a number of things that affect the APR you will be given.
When you apply for a Sainsbury’s loan, they will advertise an ‘APR’ (Annual Percentage Rate). Remember that this will be slightly different from the ‘interest rate’ because it is made up of the interest rate plus any fees that are associated with the loan such as any ‘arrangement fees’.
The APR shown will also differ based on your personal circumstances, the loan amount and the repayment term. Remember that all loans are subject to application, your financial circumstances and your borrowing history.
What documents do I need for a loan?
You can apply for a Sainsbury’s Bank loan in 1 of 3 ways: online, over the phone, or by a postal form. Online is probably the easiest though but before you apply you should make sure you have these following details available:
- Your annual income before tax
- Your address for the past three years
- Expenditure of your monthly incomings and outgoings
- The name and address of your employer
- Your Nectar card number
How do I apply for a Sainsbury’s Bank loan?
You’ll be able to apply for a Sainsbury’s Bank loan online, by phone or through the post. If your application is approved, they will tell you almost immediately if you apply online, or over the phone. If you apply via the post this can take significantly longer compared to applying online or over the phone.
Will applying for a Sainsbury’s Bank loan affect my credit?
Applying for any loan, whether it’s with Sainsbury’s bank or another lender, will leave a mark on your credit report, there is simply no way around this. Whilst this leaves people feeling a little bit unsure, remember that mark in your credit report is totally normal when applying for a loan.
The issue is that too many of these credit marks, whether resulting in a successful or unsuccessful application, is likely to make lenders slightly hesitant. But obviously unsuccessful loan applications are more damaging than successful loan applications.
But its worth noting here that just because you’ve been turned down by one lender it doesn’t mean you won’t be successful with another.
The trick is to shop around first using ‘soft searches’ that won’t affect your credit score. This will show you which loans you’re pre-approved for and then you can simply pick the best.
How long will it take for my Sainsbury’s loan to be approved?
Applying online is the preferred method as you could get an immediate decision and, if successful, you can sign your loan agreement there and then – digitally. Simples.
Once completed and signed, the money will be sent straight to your bank account – typically on the same day, often it can be as quick as a few hours.
How long will it take to receive the money?
The money is transferred instantly after completing a successful online application. It usually arrives within a matter of a few hours. If you undertake a paper application, it can take one to five working days to arrive after the signed documents are received.
Can I change my mind after taking out a loan?
Yes you can change your mind. You have the right to cancel the loan agreement within the first 14 days of receiving the agreement letter.
You will not even need to justify why you are cancelling the loan and better still, you won’t even need to pay an early settlement fee to cancel.
Can you pay back a Sainsbury’s Bank loan early?
All loans from Sainsbury’s Bank can be repaid early, all that is required if you want to pay it off in full is you need to request an ‘early settlement quote’.
Can I get Nectar points for a Sainsbury’s loan?
Yes, this is one of the benefits of a Sainsbury’s personal loan but you will need to link both your Nectar account to your Sainsbury’s Bank loan.
Can I increase my Sainsbury’s Bank loan?
Yes you can increase a Sainsbruy’s bank loan. This can be done in two ways, firstly by topping up the existing loan and paying that back over a longer term.
The second way is by simply taking out a second loan. Yes, Sainsbury’s allows you to have two Sainsbury’s personal loans at the same time!