AA cuts lending rate on personal loans

The financial wing of the AA has cut its Internet lending rate to 5.8 per cent APR on its personal loans.

The deal holds true for typical unsecured loans of between £5,000 to £25,000, and the company claims the move makes it the cheapest provider of unsecured loans in the sector.

"We are aiming to become a major player in the personal finance market and this 5.8 per cent rate underlines our determination to grow by offering market-leading rates for both loans and savings," said Lloyd East, general manager of AA Lending, said.

"Christmas is approaching fast and most people promise themselves they'll get organised in good time.

"Budgeting now and taking out a low-interest loan will help you avoid the credit card devastation that often ends up with a panic to consolidate in the New Year with the first loan that's offered," he added.