Sainsbury’s Money has launched its first personal loans with NatWest Boxed, offering Nectar members a representative APR of 6.3 per cent.

The launch marks the first product to go live under the long-term strategic partnership between Sainsbury’s Money and NatWest, which was announced in April.

Customers can now apply for a Sainsbury’s Personal Loan, powered by NatWest Boxed, through the retailer’s financial services website, with Nectar members able to access a preferential rate by providing their loyalty card number.

An instant access savings account is set to follow in October, allowing customers to make deposits and withdrawals without penalties.

Sainsbury’s said the savings rate would be confirmed at launch and would include an enhanced offer for Nectar members.

The products form part of Sainsbury’s new approach to financial services following the launch of Sainsbury’s Money in July and the completion of the transformation of Sainsbury’s Bank.

The supermarket set out plans to reshape its financial services business in 2024, moving away from operating a standalone bank and instead working with specialist partners to provide products under the Sainsbury’s Money brand.

NatWest Boxed is providing the banking platform, technology and operational infrastructure behind the new loans and savings products.

NatWest Retail is also set to launch a NatWest Nectar credit card later this year as part of the wider partnership.

NatWest Boxed chief executive Andrew Ellis said: “This partnership brings together Sainsbury’s Money’s understanding of its customers with our banking expertise and technology.

“NatWest Boxed provides the platform, banking capability and operational support behind the scenes, so customers can apply for a loan or open a savings account through the Sainsbury’s Money experience they already know and trust.”

Sainsbury’s managing director of financial services Patrick Short added: “Sainsbury’s Money is about offering our customers straightforward products that are built around what they actually need, with the extra value they already expect from Nectar.

“Working with NatWest Boxed brings together their banking expertise and our understanding of our customers, so we can offer genuinely competitive products, with an even better rate for our Nectar members.”

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