BoS ‘sale’ slashes lending rate

BANK of Scotland (Ireland) has reacted to recent reductions in the personal loan market by lowering its rate to 7.2%.

Its “summer sale” offer will run to the end of August and the new fixed rate applies to personal loans between the values of €2,500 and €25,000.

According to Chrissy Quinn, head of retail at Bank of Scotland (Ireland): “This summer sale supports our commitment to offer value-for-money products — whilst putting money back in consumers’ pockets. We are inviting customers to get a highly-competitive fixed-rate loan before the end of August.

“So even if rates go up, the cost of your loan won’t increase. This fixed-rate product, with varying terms of up to five years, currently has one of the best unsecured fixed rates on the market.”

Bank of Scotland (Ireland) moved into retail banking in Ireland at the turn of the year, with the opening of the first three of its 46 branch retail distribution network — making it the first new high street bank in the Irish market for over a century.

The latest move increases what has already become something of a price war in the personal loans market.

Earlier in the summer, AIB announced its new interest-rate structure that reduced the cost of personal loan products by over 30%.

It is currently offering new variable interest rates from 6.99% on loans of €25,000 or more. For loans of between €10,000 and €25,000, AIB’s current rate is 7.49%, with a rate of 8.99% for its loans between €5,000 and €10,000. AIB’s rate offered on loans of less than €5,000 has remained unchanged at 10.33%.

Just last month Bank of Ireland announced its own new fixed-rate personal loan package, which offered consumers a range of rates from 6.9% upwards. Its latest fixed-rate options are available for new loans from €300 upwards.