Loans Frequently Asked Questions
How can I apply?
You can apply for a loan online now and get an instant decision, or you can call 0800 096 0543. We’re open Monday to Friday 8am–10pm, Saturday 8.30am–6pm and 9.30am–5.30pm on Sundays. Calls may be monitored and are free from landlines. Once you've applied and have been approved, we'll send you an agreement to read, sign and return to us.
How much can I borrow?
Any amount between £1,000 and £25,000
What does APR stand for?
APR (Annual Percentage Rate), is how much it will cost to borrow money in an average year, over the term of your loan. It’s a way to compare the cost of borrowing from different lenders.
What is Representative APR?
Representative APR is the interest rate we give to the majority of customers (at least 51%) for a particular amount. The rate we offer you depends on your personal circumstances, our credit assessment and other related factors.
What APR will I receive?
We treat all our customers and their applications on an individual basis. At least 51% of accepted loan applicants will be offered our advertised Representative APR or less. All other accepted applications will be offered a higher rate. The APR and the interest rate we offer are determined by the details you supply, along with an independent verification of your credit and repayment history.
How is interest charged on my loan?
The total amount you repay on your loan includes the amount you borrow (capital) and the total amount of interest payable (total charge for credit). At the start of your loan we calculate the interest over the term of the loan and add this to the capital. The capital and interest is shown together as the total amount repayable on your loan agreement.
Your monthly payment will be the same every month and will consist of a percentage towards the amount of capital you borrowed and a percentage towards the interest due over the term of your loan. With every monthly payment, the amount of capital outstanding reduces, so the amount of interest charged decreases and the amount of capital you repay each month increases.
How do you work out if you can have a loan?
Like most lenders, we assess your application by using credit scoring. Credit scoring works by awarding points based on:
- Information you provide on your application form
- Information we already have about you, if you’re already a customer
- Information held on your credit reports − which you can check with credit reference agencies
Additionally to meet our responsible lending obligations, we carry out further checks to make sure that the loan repayments are affordable.
What is a credit search?
This is a search on your credit report to assess your credit history. It's based on your name and address and is provided by credit reference agencies. Our searches will be noted against your name to make other lenders aware we have requested information about you.
What is a credit reference agency?
These are agencies which collect and store information about people in the UK. They source information lenders such as credit card companies, banks and from other publicly available records. They use this information to compile credit reports.
What can I do if my application is declined?
If you're unhappy with our decision, you can write to us at the address below. We'll provide you with an explanation as to how your application has been assessed. Underwriters (CLS Appeals)
New England Street
You can also get a copy of your credit report from the following companies:
Consumer Help Service
PO Box 8000
Nottingham NG1 5GX
Credit File Advice Centre
PO Box 1140
Bradford BD1 5US
Consumer Service Team
PO Box 491
Leeds LS3 1WZ
Can I apply again if I am declined the first time?
We’re happy to consider another application after six months.
How can I improve my credit rating?
Here are a few things you can do if you want to improve your credit rating:
- Make all your regular payments on time. If you missed a credit card, mortgage or loan payment (or even a utility bill), it could be registered on your credit report and affect your chances of getting credit in the future.
- Check that you’re registered on the Electoral Roll at your current address: Lenders use this to confirm your name and address.
- Check the information on your credit report is accurate and up to date. Dispute anything you don’t agree with. If you have financial links to people on your credit report which are no longer correct − for example, if a former partner is still shown as a financial associate − ask for them to be removed
- Don’t apply for lots of cards, loans, or other credit products, at the same time. Try to spread out your credit applications and investigate any credit refusal before you apply elsewhere.
When do I get the money?
Once we’ve approved your application, we'll send your agreement by first class post. You’ll need to check all the details and sign the agreement as well as the Direct Debit. Once we have your signed documents, we’ll transfer your money directly to your bank account, usually three to five working days later.
What can I use the loan for?
Your Sainsbury's Bank personal loan can be used for virtually any legal purpose like a new car, holiday, home improvements, or debt consolidation. We don't give loans for businesses, speculative purposes such as investments and timeshares.
Can I change my mind?
Yes. You have 14 days to change your mind about your personal loan. If you decide you no longer want it, call us on 0800 096 0543. We're open Monday to Friday 8am-10pm, Saturdays 8.30am-6pm and 9.30am-5.30pm on Sundays. After 14 days you'll be bound by the terms of your loan.
Will my monthly repayments change?
No, your payments are fixed for the term of the loan and won’t change even if interest rates change.
Can I defer payment?
Yes. We give you the opportunity to take a repayment holiday of two months at the beginning of your loan. Interest is accrued during the payment holiday.
How do I make repayments?
We’ll collect your payments monthly by Direct Debit.
Can I change my Direct Debit Details?
You can change the date of your Direct Debit after you have made your first repayment. To give us time to make this change, please call us a minimum of 10 business days before your next payment is due. Call us on 0800 096 0543. We're available Monday to Friday, 8am to 10pm, Saturday 8.30am to 6pm and Sunday 9.30am to 5.30pm and will be happy to help you.
How can I find out how much I still have to pay?
To find out you outstanding balance, simply call us on 0800 096 0543.
How do I get a Nectar card?
You can pick up Nectar card application at your local Sainsbury's store. A Nectar card is included in the pack, so you can start using it almost immediately. However, you will need to activate your card online at the Nectar website.
You can also apply online at the Nectar website. It only takes a few minutes.
Can I make a complaint regarding PPI?
If you applied for your Sainsbury's Loan before February 2009 you may have a valid complaint. To discuss this with us, please call 08457 25 35 19 and select option six.
How do I make a claim on my Payment Protection Insurance?
To register a claim on your Payment Protection Insurance policy, call 0845 602 9101. We’re open Monday to Friday 8am–6pm. Calls may be recorded.
What APR will I receive?
We treat all our customers and their applications on an individual basis. The APR and the interest rate we offer will depend on your personal circumstances, credit assessment procedures and other related factors.
At least 51% of accepted loan applicants will be offered our advertised Representative APR or less. All other accepted applications will be offered a higher rate ranging from 1% above to 5.5% above the advertised Representative APR, based on our individual credit assessment of you.
How do I apply for a Boiler or Central Heating Loan?
You can apply by calling us on 0800 055 6411 and quoting P0625T. Once you've applied and have been approved, we'll send you an agreement to read, sign and return to us. (only available to Northern Irish customers)