Personal loan rates reduction 'frenzy'
January has been a good month for consumers looking to get a personal loan as a number of providers have lowered their loan rates.
Recently, Moneyback Bank has reduced its annual rate from 5.7 per cent to 5.5 per cent and Halifax and Bank of Scotland have slashed their loan rates from 6.4 per cent to 5.8 per cent in a bid to attract loan customers.
Earlier in the month, cahoot's APR went down to 5.6 per cent and the AA dropped its rate to 5.8 per cent.
January is typically the month where most loan applications are submitted as many consumers look to pay off their Christmas debt, but Stuart Glendinning, director of personal loans at price comparison website Money Supermarket, is still surprised about the amount of activity from providers.
He said: 'I have never seen such a frenzy of activity in such a short space of time. Providers are obviously aiming to get the year off to a good start.
'The market is now awash with rates below six per cent APR. Speculation of a base rate reduction in the first quarter of this year may have spurred some of this competition.'
However, Mr Glendinning warned that only consumers with 'an excellent credit profile' would be allowed to get these low rate loans. | 
