Nationwide Building Society has cut the rate of its personal loans to just 6.3 per cent APR for existing FlexAccount customers.
The move follows the launch of a competing product from M&S Money, who launched a personal loan charging 6.4 per cent last week.
The new Nationwide loan is the lowest rate ever offered by the building society and is open to both new and existing customers, though the rate will be 6.4 per cent APR for new customers if they take out the loan through an online aggregator such as the one that Myfinances.co.uk use.
The new rate is available on loans between £7,500 and £14,999 for a repayment term of up to 60 months or five years.
Paul Wootton, Nationwide's Head of Personal Loans, said: "September is usually a busy time for personal loan applications, probably because of the launch of the new car registrations. The fact that we're now offering our lowest personal loan rate ever is great news for consumers and could provide the perfect opportunity to make that dream purchase."
Use the Myfinances.co.uk comparison tables to find the best deal on a personal loan.
Twitter: My Finances
Join the conversation at #news_myfinances