Sainsbury's Loans

Find out more about the personal loans offered by Sainsbury's Loans, including how they work and how much you could potentially borrow.

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Sainsbury’s Bank was set up in 1997; originally run in partnership with the Bank of Scotland, the supermarket chain now wholly owns and runs the bank.

Sainsbury’s offers a range of financial products and services, including loans, insurance, mortgages, travel money and savings accounts.

Sainsbury’s personal loans

Sainsbury’s Bank offers personal loans to applicants who meet its eligibility criteria. These are unsecured loans, which means you do not have to use possessions, such as your home or car, as collateral against the amount you’ve borrowed.

Customers can currently borrow between £1,000 and £25,000. Nectar card holders may be able to get a higher upper limit and can currently borrow up to £40,000.

Additionally, Nectar customers may be eligible for lower interest rates.

Your loan term will be between one to seven years, depending on how much you borrow. Customers pay back their loan during this time through fixed monthly repayments.

» COMPARE: Personal loan rates

Sainsbury’s loan rates

The interest rate on a Sainsbury’s unsecured loan is fixed for the duration of the loan term, which means it won’t go up or down while you repay. This means your monthly repayments are fixed throughout, unless you voluntarily choose to overpay in order to reduce your monthly payments.

Lenders advertise a representative APR (annual percentage rate) to customers before they apply. This is the rate offered to at least 51% of successful applicants.

APR can be a useful tool when comparing loans. However, it’s important to remember that representative APR is only a guide, and isn’t guaranteed for all applicants. 49% of customers could be offered a higher rate, based on their specific circumstances.

Sainsbury’s Bank allows customers to check the likelihood of being accepted, and what interest rate they could be offered, without affecting their credit score. This may not be the same rate as the representative APR advertised by the lender.

Can I get a secured loan from Sainsbury’s?

No, you cannot get a secured loan from Sainsbury’s.

Other providers offer secured loans. These are loans where you put up an asset, such as your home, as security for what you’ve borrowed. If you don’t make your repayments, the lender can sell your asset to recoup the debt.

» MORE: Secured vs unsecured loans: What's the difference?

Pros and cons of Sainsbury’s loans

There are several advantages and disadvantages of a Sainsbury’s personal loan.


  • You can currently apply to borrow up to £40,000 as a Nectar member, or £25,000 if you’re not signed up to the Nectar scheme.
  • No fees to apply for or set up the loan.
  • Nectar members could qualify for lower interest rates.


  • You are not eligible to apply for a loan if you have a history of County Court Judgments (CCJs) or a history of bankruptcy (this can apply to other lenders too)
  • Interest rates on unsecured loans may be higher than another type of loan, such as secured loans

How do Sainsbury’s loans work?

Can I make overpayments on a Sainsbury’s loan?

Yes, you can make overpayments on a loan from Sainsbury’s.

If you choose to pay more than your fixed monthly repayment, Sainsbury’s will reassess what you owe and reduce your loan term automatically. This doesn’t apply if you are overpaying to make up for an overdue payment.

You can also overpay in order to reduce the size of future monthly repayments, keeping the term of your loan the same as before. This isn’t automatic – to do this, you need to call Sainsbury’s Bank to discuss.

If you want to pay back your entire remaining balance early, you can get a quote for how much it will cost to do so on the Sainsbury’s Bank website.

Can I borrow more on a Sainsbury’s loan?

It is possible to borrow more with Sainsbury’s Bank if you already have a loan agreement in place. You can:

  1. Combine your loan with a new top-up – you may have to pay up to 58 days’ interest to end your current loan early, plus extra interest as the loan term and amount is increased
  2. Get a new, separate loan at the current interest rate – this will be repaid alongside your existing loan
  3. If you’re a Nectar member, there is a total limit of £40,000 top-up. Non-Nectar members have a limit of £25,000. For example, a Nectar member who has already borrowed £5,000 would be able to borrow a maximum of £35,000 more if they were increasing their loan.

    However, extra borrowing isn’t guaranteed. You will have to re-apply, and your application will be assessed in the same way as a new loan.

    To discuss borrowing more or to apply, you will need to call Sainsbury’s Bank for more information.

    Will applying for a loan have an impact on my credit score?

    When you apply for a loan, the lender will perform a hard credit check on you when assessing your eligibility. This credit check will appear on your credit report, and other lenders will be able to see it.

    This doesn’t automatically harm your credit score. However, lots of hard credit checks in a short space of time may suggest to lenders that you are desperate for credit, which could affect the likelihood of approval for credit.

    » MORE: Does getting a loan affect your credit score?

What can I use a Sainsbury’s loan for?

You can use a personal loan for a variety of purposes.

For example, if you want a new vehicle, a car loan could help you pay for it. That said, you could also consider other types of car finance such as leasing, hire purchasing or a personal contract purchase (PCP).

A debt consolidation loan could help to move all your debts into one place, with one monthly payment, which may make them easier to manage. However, this may not suit everyone’s circumstances. If you’re looking for help coping with debt, you can contact a debt charity such as StepChange for personalised advice.

A new kitchen or a redecorated bathroom could cost a lot of money. A personal loan for home improvements could help pay for pipes and plumbing.

Tying the knot and planning your big day? An unsecured loan could help you pay for everything from the church to the cake. This is sometimes called a wedding loan.

Sun, sea and sand… If you are planning the trip of your dreams, an unsecured loan for a holiday could help you cover the cost.

Whatever it is you are considering taking out a loan for, you should make sure to assess your budget. Ask yourself: how much will you need over what length of time, and can you reasonably afford the monthly repayments?

You could also look at other credit options that may better suit your circumstances. It’s important to do your research thoroughly when considering taking out credit.

Restricted uses

There are limits on what you can use a Sainsbury’s loan for. The lender states that you can’t borrow money to:

  • buy timeshares
  • buy a property, either in the UK or abroad
  • set up a business
  • invest in the stock market
  • gamble
  • finance illegal activity
  • put a deposit down for a mortgage
  • repay a mortgage
  • refinance your student loans

Am I eligible for a Sainsbury’s loan?

To be eligible to apply for a Sainsbury’s loan, the lender requires you to:

  • be at least 18 and under 80 when you apply
  • be under 83 on the date the loan is due to be paid back in full
  • have a UK bank account that accepts direct debits
  • live permanently in the UK
  • be employed on a permanent contract, or be retired with a pension
  • earn more than £7,500 a year

What’s more, you shouldn’t have any CCJs or a history of bankruptcy on your credit file.

What credit score do I need for a Sainsbury’s loan?

There is no specific credit score you must have in order to be considered for a Sainsbury’s loan.

The lender will assess your application on a number of factors, including your credit score, an affordability test, and the information you provide when applying.

That said, having a good credit score may improve your chances of being approved. There are many ways to improve your credit score, such as making sure you are registered to vote at your current address.

Can I get a Sainsbury’s loan with bad credit?

You may find it more challenging to get an unsecured loan if you have a bad credit history.

Sainsbury’s Bank may not lend to people who have CCJs on their credit file. Those with a history of bankruptcy may also not be accepted.

Some lenders offer loans specifically designed for those with bad or no credit history. However, it’s important to bear in mind that these loans may come with higher interest rates and less flexibility than other personal loans.

» COMPARE: Bad credit loans

Can I get a joint loan from Sainsbury’s?

Yes, you can apply for a joint loan from Sainsbury’s.

You should be aware that if you get a joint loan with another borrower, you are joint and severally liable to repay. That means that you are both responsible for paying the money back, either together or individually. If one of you can’t make repayments, the other is still responsible for making sure the money is repaid on time, in full.

If you’re a student, or your only income comes from benefits, you won’t be eligible to apply for a loan on your own. However, you can be a second applicant on a joint loan, provided that the other person has an income that isn’t from student loans or benefits.

How to apply for a loan from Sainsbury’s

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

You can fill in an application form and upload any required documents online, as well as sign your loan agreement (if you’re accepted).

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

» MORE: Personal loans calculator

How long does it take to get a Sainsbury’s loan?

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

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 the documents are received to receive the funds.

Sainsbury’s Bank customer reviews

On Trustpilot, Sainsbury’s Bank had a rating of 3.8 stars out of 5, based on over 8,000 reviews, at the time of writing.

It’s worth noting that this includes reviews from all Sainsbury’s Bank customers (including loans, insurance, mortgages, credit cards, savings and travel money).

This information was correct as of 23 September 2022.

Sainsbury’s Loans FAQs

Do you get Nectar points with a Sainsbury’s loan?

If you’re a Nectar member and you borrow between £7,500 and £25,000, you will currently receive 6,000 Nectar points.

Can you repay a Sainsbury’s loan early?

Yes, you can repay your outstanding balance early. You can get a quote from the Sainsbury’s Bank website to see how much it would cost to repay early.

About the author

Kristina Fox
Kristina is a writer at NerdWallet. A recent graduate trading French for finance, she has experience creating content for student newspaper Cherwell and an edtech company. Read more