Consumers can save up to £2,291.40 by shopping around for a loan, Sainsbury's Bank has found.
This is the difference between a high-street lender with a 14.9 per cent loan rate, and one of the market leaders who charge around 6.5 per cent.
"There is a great deal of consumer apathy and confusion when it comes to choosing personal loans. Some people, for example, wrongly assume that you can only take out a personal loan from a bank if you have a current account with them," Rachel Brereton, loans manager at Sainsbury's Bank, commented.
She added: "This helps explain why high street banks, which can offer some of the least competitive rates available, have approximately half of the market.
"By shopping around, you can not only find a more competitive rate of interest but also a loan that may be better suited to your particular needs."To read more about personal loans, click here.
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