New personal loan offer from John Lewis Finance rivals market leading rate
- New loan offer (£1,000 - £25,000) has a representative APR of 2.9% (on loans from £7,500 to £15,000)
- Customers will also benefit from no early repayment fees or penalties for over payment
- Applicants are able to check their personalised loan rate and likelihood of being approved without leaving a 'hard footprint' on their credit file
- Opportunity to opt for one month payment 'holiday'
- The new loan offer will sit within the retailer’s growing suite of financial services products, which includes Partnership Card and Insurance
John Lewis Finance has today officially launched a new personal loan offer as it continues to expand its range of financial services products.
Customers can borrow anywhere between £1,000 and £25,000 over one to five years. John Lewis Finance will offer competitive APRs across the range of loans on offer, with a representative APR of 2.9% on loans from £7,500 - £15,000.
In addition to flexible loan terms, customers will benefit from no hidden fees, with no early repayment fees or penalties for over payments, no admin fees and a payment holiday option, offering greater flexibility.
The payment holiday option has proved popular with customers who have already had a loan approved by John Lewis Finance. More than four in ten (41%) of those chose December or January as the month they wished to take a payment holiday. The average loan value to date among customers has been £10,000 with an average repayment term of 48 months.
John Lewis Finance will also offer applicants a personalised loan quote which has been developed to ensure transparency, enabling customers to see the likelihood of being approved for a loan and the rate they would receive before making a full application, which will avoid leaving a 'hard footprint' on their credit file.
Personal Loans will sit within the John Lewis Finance brand, which launched in autumn 2016, to encompass the retailer’s growing range of financial products. This also includes Partnership Card, Insurance, Foreign Currency and International Payments.
John Lewis has seen demand for its financial services products continue to grow in 2017 with the latest figures for the first half of last year showing that total profits increased by 39% year-on- year.
John Lewis Finance has been lending to its customers via its Partnership Card for more than 10 years and believes there is a gap in the market for an alternative, trusted provider of personal loans.
Mike Jackson, Director, Financial Services, John Lewis Partnership, says: 'We believe that the trust our customers have for the John Lewis brand is the reason why many of them choose us when it comes to money matters.
'John Lewis Finance is always looking to ensure it meets the needs of its customers and providing access to a smart, responsible source of credit is an important part of this commitment. We have created a flexible proposition that includes a payment holiday, no early repayment fees, admin fees or charges for over payment. We want to make it easy as possible for people to manage their finances and ensure that they are able to pay back their loan in the simplest way possible. With this in mind our personal loan offer will be competitively priced not only at launch but over the longer term.
'Demand for our financial services products continues to grow and that is testament to the trust our customers hold in our brand. They appreciate the fact that we understand their financial needs, whether that’s related to everyday spending or purchases of bigger-ticket items, and are on hand to help them.
'This product builds on the support we already provide, offering greater choice and flexibility and ensuring customers maintain control of their money while still achieving their financial goals.'
Notes to editors
John Lewis - John Lewis operates 49 John Lewis shops across the UK (35 department stores, 12 John Lewis at home and shops at St Pancras International and Heathrow Terminal 2) as well as johnlewis.com. John Lewis, 'Best In-Store Experience 2017', 'Best Furniture Retailer 2017,' 'Best Homewares Retailer 2017'1, stocks around 350,000 separate lines in its department stores and johnlewis.com across fashion, home and technology. Johnlewis.com is consistently ranked one of the top online shopping destinations in the UK. John Lewis Finance offers a range of comprehensive financial services products - including Insurance, Foreign Currency, International Payments and the Partnership Card - delivering the values of expertise, trust and customer service expected from the John Lewis brand. www.johnlewisfinance.com
1Verdict Consumer Satisfaction Awards 2017
For further information, please contact MRM:
Telephone: 020 3326 9911
Mobile: 07766 567297
Telephone: 020 3326 9902
Mobile: 07471 351 576