Barclays ups the ante on personal loans

Barclays has taken advantage of its strong position as a major deposit taker and is cutting its personal loan rates across its book to offer some of the most competitive rates on the market.

The loans, which are marketed under the Barclayloan brand name are seeing cuts by as much as 0.6 per cent, down from 7.4 per cent APR typical to 6.8 per cent APR typical on the Barclayloan Plus product which is aimed at existing customers.

Gary Duggan, managing director for Barclays Personal Loans said: "Many lenders have been struggling to maintain their current loan rates, and we have seen increases of 0.5 per cent and upwards over recent months as the financing of their products have become more expensive.

At Barclays we are able to take advantage of a very strong balance sheet and finance loans from our very strong deposit taking business, enabling us to cut rates to as low as 6.8 per cent APR typical for this campaign.

"In fact we are so confident of beating competitor deals that, as part of this special offer, if you take out a loan from Barclays and then find it cheaper elsewhere, we will pay the difference between the monthly repayments and then pay an additional £1 each month for your trouble.

What's more, we are also offering people who already have a loan elsewhere the opportunity to "Swap for £50" when they bring their loan to Barclays." Customers can apply for a loan in branch, online or by calling 0800 158 3203.

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