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Published 28 April 2023

Sainsbury’s Loan Review: Pros, Cons & Features

A Sainsbury’s personal loan offers the potential for fast approvals and rate benefits for Nectar members. Learn more below in our Sainsbury’s Bank loan review.

Many or all of the products and brands we review are from our partners who compensate us. This may influence which products we write about and the product we choose in our ‘promotion’. However it doesn’t influence our reviews. Our opinions are our own.

Sainsbury’s Bank personal loans: At a glance 

If you apply for a Sainsbury’s Bank loan you could get an instant decision, and the funds could even be delivered to your account the same day. Nectar members can receive the best rates on loans of up to £40,000 but if you’re not signed up to Sainsbury’s reward scheme and want a loan above £25,000, you’ll need to look to other lenders.

Remember, if you’re considering a loan it’s sensible to only borrow what you need and pay it back as quickly as possible based on what you can comfortably afford to repay each month.


Sainsbury’s Bank Personal Loan

  • Representative APR
    Rate for Nectar members only
  • Representative Example
    Representative APR 5.3% (fixed). Based on a loan of £10,000 over 60 months at an interest of 5.3% p.a. (fixed). Monthly repayments of £189.52. Total amount payable £11,371.20. Maximum APR: 29.9%.
  • Available amounts
    £1,000 to £40,000
  • Available Terms
    1 to 7 years
  • Joint Loans
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Always check terms & conditions for suitability before applying.

Eligibility Requirements
  • Must be at least 18 years old and less than 80 when you apply. You should also be under 83 when the loan is due to be repaid
  • Must have a UK-based bank or building society account that can accept Direct Debits. If you’re applying for a joint loan, the first named applicant must be named on this bank account
  • Must have a permanent UK address
  • Must be in permanent paid employment or retired with a pension
  • Must have a gross annual income of over £7,500
  • Must not have a history of County Court Judgments or bankruptcy

Learn more about how we bring you our review.

Sainsbury’s Bank loans pros & cons


  • You could get instant approval and fast turnaround on funds if you sign the loan agreement online.
  • You can apply for a joint loan.
  • Nectar members can borrow more and could get preferential rates.


  • You can’t choose your payment start date.
  • Payment holidays are not available.
  • Smaller loan amounts for non-Nectar members.

The pros and cons featured here are chosen by us based on a combination of our expert opinions from our research of the personal loans market and an exclusive survey of UK consumers conducted on behalf of NerdWallet UK in February 2023 to identify the features of personal loans that people feel are most important. They are unlikely to be the only product features and restrictions that you should consider. Pros and Cons are subjective and you should align them to your own personal circumstances. Information was correct at the time of publication but may have changed since.

Sainsbury’s Bank loan overview

Launched in 1997 when it became the first supermarket bank in the UK, Sainsbury’s Bank now offers a range of financial products and services, including personal loans, insurance, credit cards, travel money and savings accounts.

Sainsbury’s Bank unsecured personal loans can be taken out by individual borrowers or jointly with someone else. 

You don’t have to be an existing customer of the bank to apply for a Sainsbury’s personal loan, but there are potential advantages to being a member of the Nectar reward scheme, including access to lower rates and higher loan amounts of up to £40,000.

Repayment terms on Sainsbury’s loans range from one to seven years, but will depend on the amount borrowed.  

Loan amounts£1,000 to £40,000 for Nectar members, or £25,000 for non-members
Term lengthOne to seven years
Time to receive funds after approvalTwo hours – next working day (if agreement signed online) 
Need to have an account with the provider?No
Customer supportPhone, online
Trustpilot rating3.9 stars (26 April 2023)

Where Sainsbury’s Bank personal loans stand out

Instant approval decision:

If you apply for a Sainsbury’s loan you can expect a decision almost instantly as long as you can provide the information it requires up front.  

Fast fund delivery:

If your loan agreement is signed online, the funds could be paid into your account within two hours; at worst, it’ll arrive the next working day. By comparison, the turnaround time with some other lenders can be as long as five working days.   

Joint loans are available:

If you want to apply for a loan with someone else, Sainsbury’s Bank is among the group of lenders that offers joint loans. This is a useful option, particularly as applying jointly with another person with higher earnings or better credit can sometimes help those on a low income or with bad credit get the loan they need.

Nectar membership advantages:

If you’re a Nectar scheme member, Sainsbury’s says you’ll qualify for its lowest loan rates. In addition, members of the reward scheme are able to borrow up to £40,000 through a Sainsbury’s loan, higher than most other lenders offer.

Where Sainsbury’s Bank personal loans fall short

Low non-Nectar member loan amounts:

If you are a non-Nectar card holder, the most that you can borrow is £25,000. Some other personal loan providers have the ability to offer larger sums if you need a bigger loan. 

There is no payment holiday option:

If the option to take a break from making loan repayments is important to you, be aware that Sainsbury’s, unlike some other lenders, doesn’t allow payment holidays on its personal loans.

What types of loan does Sainsbury’s Bank offer? 

Unsecured loans

Sainsbury’s Bank personal loans are unsecured loans, which don’t require you to put forward something that you own as security for the loan. The loan amount and the interest the lender charges must be repaid in fixed monthly instalments which you will make for the duration of the loan term that is agreed when first taking out the loan. 

The interest rate you’re offered for a Sainsbury’s loan will depend on a combination of factors, including your personal situation, credit history and the amount you want to borrow. However, if you have a Nectar membership, Sainsbury’s says that you could be eligible for its lowest interest rates.

A simple but effective loan calculator on the Sainsbury’s Bank website gives you an idea of the monthly repayments and total cost you might pay for different loan amounts over different loan terms. It also highlights the savings you could make depending on whether you’re a Nectar member or not. 

Sainsbury’s personal loans can be used for a wide variety of reasons, including for home improvements, debt consolidation, weddings, and buying a car. 

» MORE: Try our personal loan calculator 

Joint loans

Sainsbury’s Bank offers joint loans if you want to take out a loan with a family member, partner or close friend. The same borrowing limits and range of terms apply as for individual applications. 

Only one applicant needs a suitable income to be eligible to apply for a Sainsbury’s joint loan. If you’re a student, or your only income is from benefits, you can’t apply for a Sainsbury’s loan on your own. However, you could be a second applicant on a joint loan, provided your co-borrower has an income that Sainsbury’s considers acceptable. 

Remember, if you take out a joint loan with someone your credit files will be linked and you’ll both be jointly responsible for paying back the loan. Any missed payments will affect both of your credit scores.

Loans for bad credit

While Sainsbury’s Bank doesn’t explicitly state a credit score that potential borrowers should have in order to apply, it explains that your choice of loans is likely to be limited, and the rates of interest you’re offered higher, if you have a bad credit score. 

The bank does make it clear that you won’t be eligible for one of its personal loans if you’ve had County Court Judgments (CCJs) or experienced bankruptcy in the past. 

It’s important not to apply for loans unless you are confident of being successful, as declined loan applications will have a negative impact on your credit profile.

Sainsbury’s Bank eligibility criteria

To be eligible to apply for a Sainsbury’s loan, you must:

As with many lenders, Sainsbury’s adds that there is a greater chance of being approved for a loan if you have a good credit score

You might also want to consider using a loans eligibility service to conduct a soft search across multiple lenders. This would give you an indication of your chance of successfully getting a loan from several different lenders, without affecting your credit score. Importantly, you should check the details of the service you use, to make sure it only conducts soft searches and how many lenders it covers.

» MORE: Am I eligible to get a personal loan? 

Sainsbury’s Bank loan features reviews

Making payments

When it comes to managing your repayments, a Sainsbury’s loan isn’t as flexible as some. While it is possible to change the date your repayments are taken once the loan is up and running, you don’t get to choose when your first payment is taken – instead, this is based on the date that you apply. Keep in mind that changing payment dates could cause you to pay more or less in interest as a result.

There is also no option to delay the start of your repayments, as you can with some other lenders, or to take a payment holiday if you need a break from making repayments. 

Making overpayments

If you have the funds to hand, you can make overpayments on a Sainsbury’s loan without incurring a penalty or charge. When you choose to overpay, Sainsbury’s will reassess what you owe and reduce your loan term automatically (unless you’re overpaying to make up for an overdue payment). 

You can also overpay with the intention to reduce the size of future monthly repayments while keeping the term of your loan the same as before, but this isn’t automatic – you’ll need to confirm this with Sainsbury’s Bank over the phone.

Some providers set limits on overpayments, so always check the terms for your individual agreement before making payments.

Paying off a loan early

You can pay off a Sainsbury’s Bank loan early if this suits your circumstances. If you want to pay back your entire remaining loan balance early, you’ll need to get an early settlement quote from the bank before you proceed. This will detail how much you must repay to clear what you owe, any charges you’ll need to pay and your next steps. 

The charges could amount to up to 58 days’ interest, depending on when you want to pay off your loan.   

Additional borrowing

It is possible to borrow more with Sainsbury’s Bank if you already have a personal loan with the bank, but the total amount you borrow can’t exceed the limits set out for individual loans – so £40,000 if you’re a Nectar member and £25,000 if you’re not. 

One option is to combine your current loan with a new top-up and agree a longer repayment term. However, bear in mind you might have to pay up to 58 days’ interest to do so, as you’re effectively ending your existing loan early. 

Alternatively, you could get a new, separate loan at the current interest rate, which will need to be repaid alongside your existing loan. This might be worth considering if your original loan has a particularly low rate that you wouldn’t want to lose.

Any additional borrowing is likely to be based on an assessment of your circumstances at that time rather than when you applied for your initial loan.

Customer support

When it comes to support, Sainsbury’s loan customers are encouraged to use its online service wherever possible. However, for queries that can’t be resolved online, or where you urgently need support, including if it’s likely you’ll miss a loan repayment, dedicated phone support is available at various times seven days a week.    

Customer ratings

Sainsbury’s Bank receives a favourable rating of 3.9 out of five from over 10,000 customer reviews on Trustpilot, though these responses cover all aspects of the bank’s products and services, and not just loans.  

That said, Fairer Finance, which produces ratings that relate specifically to personal loans, are also reasonably impressed by Sainsbury’s loans. For customer experience, the bank is awarded a score of 64%, ranking it in the top half of the table.  

This information was correct as of 26 April 2023.

How can I apply for a Sainsbury’s Bank personal loan?

If you want to get a new Sainsbury’s Bank loan, you have to apply online. 

Any required documents can be uploaded online and, if you’re accepted, you can sign your loan agreement online. If you prefer putting pen to paper, there is the option to sign and return a paper copy of your loan agreement too.  

You can get an idea of what interest rate and monthly repayment plan you could be offered using Sainsbury’s loan calculator. This won’t affect your credit score. However, you’ll only get a personalised quote, which could have an effect on your credit score, when you apply for the loan.

What information do I need?

When preparing to apply for a Sainsbury’s Bank personal loan, be ready to share:  

To help Sainsbury’s verify your identity, you’ll also need a mobile phone with a camera that will allow you to share your photo with the bank. 

» MORE: How to get a personal loan

How long does it take to apply?

You can generally expect an instant decision on whether or not you’ve been accepted for a Sainsbury’s loan after you’ve applied.

If you signed your loan agreement online, you should receive the money in your bank account by the next working day. If you signed a paper copy of the agreement, it could take up to five working days after Sainsbury’s has received the documents to receive your funds.

Frequently asked questions

Are Sainsbury’s loans hard to get?

You need a minimum gross annual income of £7,500 to apply for a Sainsbury’s loan and, ideally, a good credit score to give yourself the best chance of being approved for the loan. You can’t apply if you’ve previously had CCJs or been bankrupt.

Can I take out a second Sainsbury’s loan?

Yes, you are allowed to have two Sainsbury’s loans at the same time. An application for a second loan will follow the same process as for the first, though any rate you’re offered could be different to the one you’re paying already. Nectar members can’t borrow any more than £40,000 in total across the two loans, while non-members are limited to £25,000.

Do you get an instant decision on Sainsbury’s loans?

Sainsbury’s Bank will usually provide an instant decision when you apply for one of its personal loans online. It’s possible you might receive the funds into your account the same day too.

Review methodology

At NerdWallet Ltd UK we base our reviews on the results of surveys we conduct to understand what key product features are important to those who use them, and align them to the product we review.

Product details reflect the information that was available at that time but may have changed since. We strive to give you a review on as many products as possible but it is likely there are others available that we have not reviewed. The review is our opinion, but it does not constitute advice, recommendation or suitability of your financial circumstances.

You can view our review methodology here.

About the Author

Tim Leonard

Tim is a writer and spokesperson at NerdWallet who has over 20 years’ experience writing about almost all aspects of personal finance. During his career at Moneyfacts, Virgin Money and…

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