We like supermarkets' loan rates

There was good news for borrowers this week as two of the largest supermarkets in the personal finance arena have lowered their personal loan rates.

First, Tesco Personal Finance reduced three of its telephone loan rates. Loans of between £5,000 and £7,499 have come down from 8.2% to 7.6%.

For loans of between £7,500 to £14,999, the rate has dropped by 0.3% to 7.4%. And for those borrowing up to £25,000 the rates have moved down by 0.2%, to 7.4%.

From the beginning of this week, rival Sainsbury's Bank reduced its internet-only loan rates for £5,000 to £25,000 from 7.2% to 6.5% - propelling its rate into second place in the best buy tables, under market leader Northern Rock.