A new survey of the personal loans market has shown that, for figures between £5,000 and £15,000, there are only four lenders which offer eight per cent or less annual percentage rate (APR).
Carried out by Sainsbury's Bank, which is one of the four, the research found that there has been a reduction in the number of lenders offering low interest rates since May 2008, when there were 42 companies offering personal loans at eight per cent or less.
According to Moneyextra.com, the average APR on a personal loan is currently 10.14 per cent, while Sainsbury's offers a rate of 7.9 per cent.
Steven Baillie, head of loans for Sainsbury's Finance, said: "Our current analysis highlights the fact that the loans marketplace is actually much less competitive than it was 12 months ago."
A recent survey of the market by Moneyfacts showed that 14 major providers of secured personal loans have ceased offering the service since mid-2007.






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