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sainsbury loan offer

malich · 2013-02-17 18:55:30

Have just noted sainsbury loan offer via ML website. Option to borrow £5000 over 3 yrs total cost £600. Want to use this for some home improvements & hols.Could use some of my savings from my ISA's, but like the idea of using the banks money & paying off early what do other forum users think? Thanks

Comments

YorkshireBoy Posts: 31,541 Forumite

18 February 2013 at 11:30AM

molerat wrote: »

You would need to be getting more than 3.9% net on savings (unlikely!) to make this 7.9% apr loan pay

I'm struggling to see how you've come to that conclusion.

Wouldn't the (after tax) savings rate need to at least equal the loan rate? After all, they're both expressed as 'annual' rates (AER vs APR).

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