Tesco Bank has cut the interest rate on loans between £7,500 and £15,000 to 3.8% APR representative from 4.1%.

The new interest rate is effective immediately, and both new and existing customers can apply. Tesco Bank loans have fixed monthly payments and no set-up charges. Customers can choose the repayment date and have the option to apply for a payment break at the start of the loan, subject to eligibility.

David McCreadie, managing director of banking at Tesco Bank, said: “We are committed to providing customers with products and services that are simple, good value and convenient, and we are delighted to offer customers one of the most competitive rates on the market, and our lowest ever personal loan rate.”