Does your local supermarket offer great value loans?

With the Bank of England raising interest rates three times in the space of six months, taking the interest rate from four and a half percent to five and a quarter percent since August 2006, it has become more important than ever for those looking to take out finance such as a loan to really shop around and compare the rates that are being offered by various lenders. And with so many companies offering great deals on loans there is certainly no shortage of choice for consumers in the UK.

In addition to taking out a loan through a traditional lender such as a high street bank, consumers can now also select from other popular options, such as going through an Internet lender or even getting a loan from the local supermarket. Many big name supermarkets now offer loans as well as credit cards, including Tesco and Sainsbury's. And more recently, the Asda chain has also started to offer a low rate loan, which could enable many people to enjoy big savings on the cost of borrowing.

However, before committing to a supermarket loan and assuming that cheap groceries also mean cheap finance, consumers should ensure that they look at all the options and compare the different rates from traditional and online lenders as well as places such as supermarkets. Currently Asda and Tesco are offering personal loans with a typical APR of 6.9 percent, and in a special loan sale Sainsbury's is offering a rate of 6.5 percent.