Citibank Launches Cheapest Personal Loan in the UK at 7.9% Interest Rate

Strategic Insights -

Citibank, a division of financial giant CitiGroup, is set to launch the cheapest personal loan in the UK, with an interest rate of just 7.9 per cent. This move is expected to trigger a price war among lenders, leading to cheaper loans for consumers. The loan rates will depend on the amount borrowed, with the lowest rate applying to loans between £15,000 and £25,000.

Key Takeaways:

  • Citibank's 7.9 per cent loan rate is the cheapest in the UK, beating rates from Barclays (15.9 per cent), Marks & Spencer (12.9 per cent), Egg (11.9 per cent), and Alliance & Leicester (11.9 per cent).
  • Borrowers would save £4,681 on a £15,000 loan paid back over five years if they took their money from Citibank instead of Barclays.
  • Citibank's loan rates are staggered depending on the sum borrowed: 12.9 per cent on loans from £3,000 to £4,999, 9.9 per cent on loans from £5,000 to £7,499, 8.9 per cent on loans from £7,500 to £14,999, and 7.9 per cent on loans from £15,000 to £25,000.
  • Citibank's loan rates are lower because the bank doesn't have the overheads of a UK branch network, with only three branches in London.
  • Customers can register their interest in the new loan by calling 0800 37 16 80 or visiting the Citibank website at www.citibank.co.uk.
  • The new loan is expected to be available from August.

Statistics:

  • Interest rate: 7.9 per cent
  • Loan amount: £15,000 to £25,000
  • Potential savings: £4,681 on a £15,000 loan paid back over five years
  • Number of UK branches: 3 (all in London)
  • Number of UK cash machines: 18,000 (available to Citibank customers)

Sources:

  • "Citibank Launches Cheapest Personal Loan in the UK at 7.9% Interest Rate", The Telegraph, no publication date given.