Still a very low rate on the open market, but a shame more lenders aren’t trying to compete:

Press release

With effect from Wednesday 7 October 2009, Nationwide will be introducing a new personal loan rate of 7.9% APR typical for loans of between £7,500 and £14,999* for its current account customers.

Over the past two months, Nationwide has been offering a special market leading low rate loan rate exclusively for its current account bank account customers. When the special offer period ends on Wednesday 7 October 2009, Nationwide will continue to reward its current account customers by offering a rate of 7.9% APR typical. This continues to be the lowest rate in the UK and beats the rates set by other high street personal loan providers by offering a sub 8% rate. The same low rate applies whether the loan is taken out through a branch, telephone or the Internet.

Press release:

With effect from Thursday 6 August 2009, Nationwide will be reducing its personal loan rate to offer a market leading rate of 7.7% typical APR for loans of between £5,000 and £14,999* for its current account customers.

With this typical rate, Nationwide becomes the lender with the lowest personal loan rate in the UK, beating the supermarkets and all the high street banks** – the same low rate applies whether the loan is taken out through branch, telephone or internet.

Chris Rhodes, product and marketing director, said: “Nationwide continues to be competitive in the personal loan market with the introduction of this market leading headline rate of 7.7% typical APR, beating what’s being offered by supermarkets and high street banks.

Note the conditions, which aren’t too restrictive:

• * For loans of £5,000 to £14,999 for up to five years for FlexAccount customers – they must have a monthly credit turnover of at least £750 (excludes internal transfers) for the last three consecutive months. Offer applies to new Nationwide Personal Loan customers only.
• The rate offered will depend on the amount borrowed and the customer’s individual circumstances. Other loan amounts are available.
• The previous rate applicable when borrowing £7,500 to £14,999 was 7.9% typical APR.
• The rate offered will depend on the amount borrowed and the customer’s personal circumstances.
• Nationwide Personal Loans are available for any amount between £1,000 and £25,000. Repayment term is between one and seven years.
• There are no upfront charges or arrangement fees.
• All loans are subject to status and are available to those aged 18 or over only.

Let’s see if this helps invigorate the commercial loans market.