Can consumers pocket the difference with an Asda loan?

There are many different loans on offer these days for UK consumers, and the range and type of lender that is able to offer this type of facility over recent years has really grown. In the past the only way to get a loan was to go through the bank. However, more and more lenders have come into operation over the years, such as specialist lenders, Internet lenders, and the latest group to jump on board is the supermarket.

Over recent years the supermarket has become a place that offers far more than just groceries. You can now get toys, clothes, gifts, home products – and a range of financial products such as credit cards and loans. The major supermarkets such as Tesco and Sainsbury’s have been offering finance for some time now, and the latest supermarket to jump on board is Asda, which is now offering a personal loan deal at 5.9 percent on loans between five and twenty five thousand pounds.

Over recent months some experts have expressed concern over the amount of extra interest consumers may be paying by taking out a loan with a supermarket rather than look for a low cost deal with an alternative lender. However, the loan offered by Asda has received the thumbs up, with This is Money putting it amongst one of the most competitive unsecured deals available.

Asda’s financial services director, Gev Lynott, stated: "This offers the perfect opportunity to re-finance when interest rates are typically on the increase. No upfront fees, one of the lowest interest rates on the market and the option of paying nothing back for the first three months shows that at Asda, we aim to make credit available in a responsible way to as many customers as possible."

Tom Smith
02.02.07

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