The personal loan market is changing again with the launch of a new market-leading loan.
New market-leading 4.9% personal loan launched by Hitachi
Hitachi has cut the interest rate on its personal loan to 4.9% making it the cheapest loan available on the market.
The rate applies to loans of between £7,500 and £10,000, though it will only be available until midnight on 31st October.
Market-leading loan
Hitachi loans can be taken out at 4.9% and will need to be repaid in a period of between two and five years. You can get the loan at an even lower 4.8% if you're an existing customer.
It's the cheapest loan available within this range and this is despite Hitachi, the financial arm of the Japanese conglomerate, not having access to the Government's Funding for Lending Scheme (FLS).
Competition in the personal loan market has been fierce this year. Last month Sainsbury's launched the cheapest-ever personal loan at 4.8% although this was pulled last week.
The alternatives
Zopa, the peer-to-peer lender, also offers a loan at 4.9% but as it's not a traditional lender it works slightly differently. Lenders and borrowers are matched through the website, cutting out the middle man – the bank.
When looking at standard loans from the main high street banks and building societies, Derbyshire Building Society, Clydesdale Bank and M&S Bank are all tied in the next best spot offering 5% on their personal loans of the same amount.
Our comparison tables show the full picture but here I've listed the top five currently available.
Headline rates
The interest rate advertised on a personal loan won't apply to everyone who is accepted for the loan. This is because lenders are only required to offer this rate to 51% of people who are approved.
The interest rate you're offered will depend on your own financial situation therefore it's worth checking out your credit score before applying. We have a 30-day free trial you can sign up to from Credit Expert which will give you an idea of how likely it is that you'll get the loan at the advertised rate.
Compare the latest personal loan rates
