Sainsbury’s Bank lifts Covid ban on credit cards and loans

S

ome welcome positive news from Sainsburys Bank, the Edinburgh-based financial services arm of the UK retailer.
Good news has been in short supply from Sainsburys Bank, with news reports late last year that the retailer was eyeing up a sale of the unit due to low interest rates depressing profitability.

Sainsbury’s Bank has now resumed issuing credit cards and personal loans to self-employed workers, a reversal of temporary coronavirus lending restrictions on all such lending.

The bank had introduced the ban in July 2020, citing significant financial uncertainty stemming from the coronavirus pandemic. The ban didn’t affect existing borrowers. The bank stopped accepting new applications amid concerns about repayment.

Sainsbury’s began relaxing the rules in November 2020, by allowing self-employed borrowers to apply for personal loans under £25,000. As of February, these applicants can also apply for credit once again. Personal loans of more than £25,000 are still excluded.

All conditions still apply

Applicants must still fulfil all the credit, income, and other requirements in order to be approved. One requirement is that applicants must hold a Nectar card with the supermarket group for at least six months before applying for a credit card.

Sainsbury’s offers a wide range of credit cards, with some offering different features to others. Applicants are advised to investigate as many different options as possible to ensure the card they are applying for is right for their circumstances.

For example, customers might want to look for a card with an interest-free balance transfer rate, or one which offers rewards from certain retailers, depending on how they want to use the card. In most cases, customers will be able to apply quickly and easily online, but may also be able apply by phone.